AltaGas’s Proposed Floating Liquefaction Facility Facing C$100 Million Customs Duty

AltaGas Ltd., one of the sponsors of the proposed Douglas Channel LNG export terminal at Kitimat, British Columbia, is delaying a final investment decision on the project pending the outcome of an appeal of a C$100 million federal customs duty imposed on a floating liquefaction plant that one of its partners, Belgium’s Exmar NV, is building for the project.  According to a Business in Vancouver report, the Douglas Channel floating LNG terminal is being assessed as a ship, and the customs duty being applied was designed to protect Canada’s shipbuilding industry.  The Douglas Channel project is a partnership among AltaGas DCLNG General Partner Inc., AltaGas Idemitsu Joint Venture Limited Partnership (a partnership between AltaGas Ltd. and Idemitsu Kosan Co., Ltd.), EXMAR NV, and EDF Trading Limited.




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