BC LNG Alliance Backgrounder

October 8, 2014

About the Alliance
The BC LNG Alliance is dedicated to fostering the growth of a safe, environmentally and socially responsible liquefied natural gas (LNG) industry in British Columbia that is globally competitive.

B.C.’s significant natural gas reserves and our proximity to Asian markets give our province a rare opportunity to grow a vibrant new industry while serving the growing demand for natural gas and a better quality of life in the Asia-Pacific.

The Alliance was launched officially on October 7 in Terrace, B.C., to demonstrate how vital northern British Columbia is to the industry.

    Alliance Members

  • Kitimat LNG (Chevron Canada and Apache Canada Ltd.)
  • LNG Canada (Shell Canada Energy, PetroChina, KOGAS and Mitsubishi Corporation)
  • Pacific NorthWest LNG (PETRONAS, JAPEX, Indian Oil Corporation, Sinopec and PetroleumBRUNEI)
  • Prince Rupert LNG (BG Canada)
  • Triton LNG (AltaGas and Idemitsu Canada)
  • Woodfibre LNG (Pacific Oil and Gas)
    Alliance Goals
    Working with our members, the Alliance aims to:

  • Foster a globally competitive LNG export industry for the benefit of British Columbians and Canadians
  • Work with government at all levels to ensure there are policies and programs in place that will enable the LNG industry to reach its full potential
  • Ensure the industry is developed to the highest environmental and safety standards
  • Engage with, listen to and address the concerns of First Nations, communities and stakeholders
  • Provide the public with reliable information about our industry, operations, best practices and the challenges we face as a new industry
    LNG Benefits for British Columbia and Canada
    LNG holds the potential to create tens of thousands of new construction jobs and thousands of new permanent jobs for British Columbians for decades to come.

  • For example, up to 4,000 new jobs could be created to construct most of the large-scale LNG plants, while thousands of new and permanent jobs would be required to operate the plants and support the industry
  • Together the Alliance members’ six projects represent a total potential investment in the tens of billions of dollars, just for the liquefaction plants alone
  • Investments in pipelines and upstream production facilities would add billions more to the total
  • When the plants are operational, they could provide new annual revenues that may well run into the billions of dollars to all levels of government through:
    • Corporate Income Tax
      • Federal
      • Provincial
    • Provincial Sales Tax
    • Federal Goods and Services Tax
    • Property Tax
    • Customs Duty
    • Carbon Tax
    • Motor Fuels Tax
    • Property Transfer Tax
    • LNG Income Tax (once enacted)
    A Competitive Fiscal Framework is Required to Cross the Finish Line

  • LNG projects are large undertakings that involve substantial capital investment
  • LNG proponents sizing up their Final Investment Decisions do so in the context of not only what is happening in British Columbia, but what is happening globally
  • Alliance members want to ensure that the overall cost structure they operate in is competitive with other jurisdictions
  • B.C.’s LNG industry requires clarity, certainty and a competitive fiscal framework to be successful in a highly competitive global LNG industry

Tamara Little: 604-767-0207

Email: tlittle@national.ca