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A rolled steel and double-walled, perlite-insulated cryogenic LNG storage tank at the Mt.Hayes Natural Gas Storage Facility in Mt.Hayes,B.C. April 2, 2013.
A rolled steel and double-walled, perlite-insulated cryogenic LNG storage tank at the Mt.Hayes Natural Gas Storage Facility in Mt.Hayes,B.C. April 2, 2013.
(Chad Hipolito For The Globe and Mail)

B.C. taxes risk choking off revenue from gas

We now know how much time British Columbia has to either turn its liquefied natural gas (LNG) dream into reality, or suffer a rude awakening. It’s seven months.

B.C. Premier Christy Clark on Monday signed a letter of intent with Malaysian state energy company Petronas, in which both sides agreed to do things that, one could argue, they were doing anyway. The province will clarify the tax structure it plans to place on LNG; it had already said it would introduce LNG tax legislation in the fall. Petronas has pledged to work toward a formal deal to develop its $11-billion project by Nov. 30; the company and its partners had already said they would make their investment decision before the end of the year.