The article cites Pacific NorthWest LNG, Woodfibre LNG and Douglas Channel LNG as being on top, while Kitimat LNG and Canada LNG have yet to make the negotiation list.
The agreements, according to the Sun, are meant to provide certainty around items like tax rates, gas royalties, and greenhouse gas emissions – something more common in countries with unstable politics.
The B.C. government and the aforementioned companies have gone on-record to say they will be revealing little to no details about the agreements before they are signed.
Industry observers say a future provincial government may have “different values and priorities,” which leads them to believe the agreements are being constructed to provide compensation if the tax or royalty structure is changed, according to the Sun.
They say this will help companies reach a final investment decision.
However, Natural Gas Development Minister Rich Coleman has told the Sun that future governments can’t be bound by current government’s decisions.
He does agree that companies need certainty around things like the newly introduced LNG income tax, but stopped short of saying much more on how the province can provide this certainly – citing “complex legal work around contract law.”
Coleman says agreements will need to be reached with all projects that go forward.
Industry analysts expect only one – three out of the nearly 20 LNG projects will move forward after 2020.
Click here to read the entire Vancouver Sun article.
