Premier John Horgan has announced his government is taking a new approach to LNG development in this province, one that could see a new $40-Billion natural gas pipeline built from northeastern BC to Kitimat, with a $7.8-Billion terminal to process and ship LNG to Asian markets.
Horgan unveiled a new framework that offers potential tax breaks of up to $6-Billion. That includes relief from the provincial sales tax, subject to repayment in the form of an equivalent operational payment. General industrial electricity rates would be consistent with other industrial users. And the NDP government will eliminate the LNG income tax surcharge brought in by the previous Liberal government.
To gain approval the project would have to meet 4 conditions: Guaranteeing a fair return on BC's resources; Providing jobs for residents; Partnering with First Nations; and Living up to BC's climate targets.
The Premier says the new approach welcomes investment while putting the province's needs and future first:
"This new approach is one that I believe British Columbians want to see from their government. If we can realize industrial development, spectacular. If we can do that within a framework that protects our environment and meets our climate objectives, brilliant. If we can ensure that genuine reconciliation can happen with Indigenous peoples, I believe we've not just checked all the boxes, but we've developed a framework that will mean something to British Columbia now, and into the future.
If approved, the project would be the largest private-sector investment in the province's history, creating up to 10,000 construction jobs and up to 950 full time jobs in northern B.C. The Provincial government anticipates the company will make a final investment decision by the end of this year.
Meantime several other LNG proponents are expressing renewed interest in developing projects in B.C.
The announcement is raising the ire of BC's Green Leader. Andrew Weaver views pursuing LNG as "folly", and reminds the minority NDP government his party's support, as laid out in the confidence and supply agreement, requires that greenhouse gas emission targets are met. That is 40% by 2030, and 80% by 2050. Weaver says while he isn't planning to bring down government now -- a future threat was implied. He says the Greens will be watching closely.
Weaver is reminding both the Horgan government and LNG Canada that the minority government requires Green support for general stability and to pass legislation.