Editorial: LNG players need aboriginal answers – BiV

April 14, 2015

The treaty claims industry is more than a First Nations financial burden

The federal government and anyone else wagering on liquefied natural gas will need far more than optimism to cash in at B.C.’s high-stakes LNG table.

Federal Natural Resources Minister Greg Rickford was in Vancouver recently to reassure British Columbians that the Conservative government remains committed to ensuring that the major players still in the game establish at least one LNG export facility on the west coast. Like the provincial government, Ottawa deserves points for fanning those flames of optimism.

In February, the federal government increased the capital cost allowance rate for LNG plants to 30% from 8%, which one analyst told Business in Vancouver translates to a $700 million tax deferral on a typical $10 billion LNG project. That’s a significant incentive. But incentives will go only so far in the wider world of depressed oil prices.

Read More: http://www.biv.com/article/2015/4/editorial-lng-players-need-aboriginal-answers/