Skip to main content

A file photo from January, 2009, shows a $190-million liquefied natural gas storage facility under construction on Mt. Hayes, outside Nanaimo.

Cam Craig/Terasen Gas

The B.C. Liberal government is pinning its hopes on exports of liquefied natural gas as it looks to bolster the province's long-term economic fortunes.

In Tuesday's budget, the Liberals released two consultants' reports to back up their rosy view of LNG.

Grant Thornton and Ernst & Young both used a 20-year horizon for projected LNG-related revenue. The government extrapolated the consultants' information to come up with a 30-year time frame for $130-billion to $260-billion in revenue.

Story continues below advertisement

Grant Thornton forecast from $132-billion to $185-billion in LNG-related revenue over 20 years, while Ernst & Young predicted it would be from $79-billion to $162-billion.

Neither consulting firm spelled out the impact of a new tax proposed on LNG exports to Asia. But their estimates do roll in existing provincial taxes and royalties, plus the potential new B.C. LNG revenue regime.

Separately, there will be a new 3-per-cent minimum royalty on deep natural gas wells that qualify for a taxation credit program. The Liberals say a financial floor must be established to collect those royalties because credits threaten to offset revenue.

Report an error Licensing Options
About the Author

Brent Jang is a business reporter in The Globe and Mail’s Vancouver bureau. He joined the Globe in 1995. His former positions include transportation reporter in Toronto, energy correspondent in Calgary and Western columnist for Report on Business. He holds a Bachelor of Commerce degree from the University of Alberta, where he served as Editor-in-Chief of The Gateway student newspaper. Mr. More

Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

Please note that our commenting partner Civil Comments is closing down. As such we will be implementing a new commenting partner in the coming weeks. As of December 20th, 2017 we will be shutting down commenting on all article pages across our site while we do the maintenance and updates. We understand that commenting is important to our audience and hope to have a technical solution in place January 2018.

Discussion loading… ✨