B.C. passes Liquefied Natural Gas Project Agreements Act
The B.C. government has passed legislature enabling LNG project agreements sets the stage for unprecedented levels of investment, job creation, and economic activity, announced Premier Christy Clark.
“Liquefied natural gas represents an extraordinary opportunity for people throughout the province,” said Clark. “This legislation sets the stage for building a clean, competitive new industry that gives British Columbians a fair share of the benefits - thousands of jobs, new connections for small and medium businesses, and new revenue to benefit B.C. for years to come.”
The B.C. legislature reconvened for a special summer legislative session July 13, 2015, to debate Bill 30, the Liquefied Natural Gas Project Agreements Act, which provides the legislative authority for government to enter into LNG project agreements. The bill received Royal Assent today.
“British Columbians own this resource and we have ensured a fair return for current and future generations who will benefit significantly,” said Finance Minister Michael de Jong. “LNG project proposals are the largest private sector investments the province has ever seen. With this legislation we have provided assurance for those seeking to make investments that the tax and royalty structure they operate under will be stable.”
The act allows for ratification of the first LNG project agreement, signed with Pacific NorthWest LNG. Through these agreements, Pacific NorthWest LNG is expecting to make the biggest private sector capital investment in B.C.’s history, worth approximately US$36 billion. The project is expected to create 4,500 jobs at peak construction, in addition to hundreds of long-term operational and spin-off jobs. The project is expected to generate an estimated $8.6 billion in additional provincial revenue by 2030 through taxes and royalties.
“LNG is a generational opportunity that is already creating jobs and training opportunities, and promises new revenue for British Columbians,” said Natural Gas Development Minister Rich Coleman. “We are creating a better future and a better British Columbia for our children and grandchildren. That’s something we can all be proud of.”
In June, Pacific NorthWest LNG announced it had reached an investment decision subject to approval of the project agreement by the B.C. legislative assembly and a positive regulatory decision on the project’s environmental assessment by the federal government.