Close X
Friday, November 29, 2024
ADVT 
National

Petronas says 'consensus' on LNG terms in next few weeks is 'critical'

Darpan News Desk The Canadian Press, 06 Oct, 2014 10:56 AM
    VICTORIA - A major player in British Columbia's liquefied natural gas sweepstakes has rained on Premier Christy Clark's throne speech, which laid out the government's plans for the industry in the coming months.
     
    Malaysian energy giant Petronas, which is planning a multibillion-dollar LNG export facility near Prince Rupert, B.C., chose the opening of the legislature Monday to issue a statement, saying it may delay development for a decade unless it can reach cost and environmental agreements with provincial and federal governments by month's end.
     
    Clark also rejected suggestions the government was downplaying its expectations for LNG because the throne speech did not mention past statements of creating 100,000 new jobs and eliminating the provincial debt, currently at more than $60 billion.
     
    "This is a chance — not a windfall," said the speech. "It will not be simply given to us, but achieved after a lot of hard work."
     
    Clark said at a news conference following the speech, which was 11 pages long and took less than 18 minutes to read, that she is focused on the job at hand, not repeating past promises about LNG and its benefits. 
     
    "I certainly hope they (Petronas) will be one of them," she said. "It's a very big project. Our goal out of 15 is to make sure we landed five. We're government in a hurry and we want to make sure this happens."
     
    The statement issued by Petronas president Shamsul Abbas said "tax and high cost environment will negatively impact the project's economic viability and competitiveness. In fact, in our last portfolio review exercise, the current project economics appeared marginal."
     
    Clark said talks between Petronas and the government are at the crunch point and she viewed the company's statement as a negotiating tactic. She said she hoped the government and Petronas could reach a deal on the proposed Lelu Island LNG plant, but the development is one of more than a dozen currently in the planning stages.
     
    "We are getting down to the short strokes of it," she said. "The really hard part of it is coming right now, for both sides. What Petronas is doing is representing its shareholders. That is their job. My job is to represent the people of B.C."
     
    Opposition New Democrat Leader John Horgan said he is concerned the Liberals are about to backtrack on their predictions of LNG riches. He said he also has concerns that British Columbians are being kept in the dark about the government's negotiations about a tax structure that could impact their futures.
     
    "The important thing here is what's the return to the people of B.C.," he said. "What concerns me is Petronas knows more about this framework than the people of B.C."
     
    The throne speech, read by Lt.-Gov. Judith Guichon, said the LNG industry is an opportunity that represents a turning point for B.C., but success requires hard work.
     
    "If we choose to do nothing, to maintain the status quo, we will have chosen decline," said Guichon.
     
    Guichon said the government will use this fall's legislative session to move ahead with its framework to ensure the LNG industry benefits the owners of the resource — the people of British Columbia.
     
    Clark said the government will table legislation in the coming weeks that includes a tax and environmental structure for LNG.
     
    "The centrepiece of it is bringing in the full tax structure that will be required to bring in an LNG industry," she said. "I felt today was really important to get down to the business of what we're going to do in this session. Get on with it."
     
    Last February, Finance Minister Mike de Jong introduced a proposed two-tiered LNG Income Tax that called for an initial tax of 1.5  per cent at the start up phase and a tax of up to seven per cent once production was underway.
     
    Clark and de Jong have since said the seven per cent number was open to discussion.

    MORE National ARTICLES

    Google's Eric Schmidt talks about hiring Canadian talent, loving BlackBerry

    Google's Eric Schmidt talks about hiring Canadian talent, loving BlackBerry
    TORONTO - Google's executive chairman Eric Schmidt made a rare visit to Canada on Wednesday, to help announce a $1.5 million grant to support the educational charity Actua and speak at an event promoting his new book "How Google Works," written with Jonathan Rosenberg, an adviser to CEO Larry Page.

    Google's Eric Schmidt talks about hiring Canadian talent, loving BlackBerry

    Abbotsford Police Search Man Spotted Carrying Girl Into Bushes

    Abbotsford Police Search Man Spotted Carrying Girl Into Bushes
    ABBOTSFORD, B.C. - Police in Abbotsford, B.C., are searching for a young girl who was last seen lying on the side of a road and being carried off by a man into the bushes.

    Abbotsford Police Search Man Spotted Carrying Girl Into Bushes

    Coffee Club sues rival Keurig, alleges unfair competition over coffee pods

    Coffee Club sues rival Keurig, alleges unfair competition over coffee pods
    TORONTO - A Canadian coffee roaster is suing Keurig Green Mountain, which makes single-serving pods for use in its own brand of brewing machines.

    Coffee Club sues rival Keurig, alleges unfair competition over coffee pods

    Emissions and LNG Tax set for B.C. Fall Sitting

    Emissions and LNG Tax set for B.C. Fall Sitting
    VICTORIA - The issue of a liquefied natural gas tax is set to heat up debate during British Columbia's fall legislative session, but the potentially controversial issue of emissions controls on LNG are also part of the package.

    Emissions and LNG Tax set for B.C. Fall Sitting

    Health Canada bans some drug imports from India; cites quality concerns

    Health Canada bans some drug imports from India; cites quality concerns
    OTTAWA - Health Canada says it is banning imports of some medications and drug ingredients produced in India due to concerns about quality.

    Health Canada bans some drug imports from India; cites quality concerns

    Magnotta trial continues with cross-examination of crime-scene technician

    Magnotta trial continues with cross-examination of crime-scene technician
    MONTREAL - Luka Rocco Magnotta's lawyer is continuing his cross-examination of a Montreal police crime-scene technician today on Day 3 of his client's first-degree murder trial.

    Magnotta trial continues with cross-examination of crime-scene technician