Province releases details on agreement over Pacific NorthWest LNG

Details of a development agreement between the province and Petronas over the $36-billion Pacific NorthWest LNG project were released today.

According to a report in the Globe and Mail, the agreement cements in place the province’s LNG tax rules, protecting the company from swings in the province’s LNG income tax rate, natural gas credits, carbon taxes, and greenhouse gas regulation changes.

The agreement does not protect the project from any changes to the provincial sales tax or the corporate income tax, the province says.

The B.C. legislature will convene next week to ratify the agreement.

The Pacific NorthWest LNG terminal would liquefy natural gas from northeast BC for export. The terminal is proposed for Lelu Island within the District of Port Edward.

The project has already received an environmental certificate from the province. The federal review has been underway since April 2013, with a decision on the project expected later this year.

Read the full Globe and Mail report here.