Liquefied natural gas tax postponed again

The New Democrats energy critic, John Horgan argues, the Liberals “Have made this, the signature piece of their economic portfolio, and now they’re going to have to negotiate with companies, that know full well, they have the upper hand.”

Finance Minister Mike De Jong has pushed aside suggestions the lengthy drafting process, might scare away some of the project proponents.

He says extensive consultation has taken place with those proponents and investment interest remains high.

The introduction of a new tax is meant to help fuel a 100-billion dollar prosperity fund, and Mr. De Jong has indicated he will lay out the basic LNG tax framework, in his February 18th budget.

However, that information is not expected to provide specific numbers on tax rates.

There are as many as ten proposed LNG north coast plants, and while none of the proponents has yet made a final investment decision, some have reportedly said, they would like to do so before the end of this year.