Shell Concerned With Proposed B.C. LNG Tax Rate
Financial Post reports that a spokesman for Royal Dutch Shell, a sponsor of LNG Canada’s proposed LNG terminal at Kitimat, British Columbia (B.C.), responded to the recently proposed B.C. LNG tax proposal by stating that his company has “been clear that the rate needs to be globally competitive if B.C. is to build an LNG industry, and we’re concerned the top end of the range won’t achieve that level of competitiveness.” Under the proposal, B.C. tax rates on LNG exports would increase to 7% once companies recover the capital costs of building their LNG export terminals. The article states that a spokeswoman for Chevron, sponsor of separate LNG export terminal at Kitimat, indicated that Chevron is still reviewing the tax proposal and added that projects “must be globally competitive if B.C. is to see an LNG industry.”