CAPP has said that the federal government’s tax reclassification for potential LNG export facilities enhances Canadian competitiveness and supports the continued success of the country’s upstream natural gas sector.
Tim McMillan, CAPP President and CEO said, “LNG development presents a tremendous economic opportunity for British Colombia and for Canada, and is vital to the long term viability of the Canadian upstream natural gas industry and the substantial benefits that flow from it. The tax reclassification recognises the need for a globally competitive business environment and will help create a more level playing field. It will also enhance our ability to attract the significant investment capital needed to establish a Canadian LNG industry and grow upstream production.”
Canadian natural gas continues to be displaced in the country’s traditional markets in Eastern Canada and the US because of supplies closer to these markets and without access to new global markets, could constrain Canadian natural gas production by approximately 40% by 2030. Conversely, the IEA has forecast that global natural gas demand will increase by approximately 60% by 2040.
McMillan concluded, “the IEA forecast also underscores the heavy competition for LNG development, the US and Australia and projected to become major players, and notes the relatively high production cost of Canadian natural gas that’s needed to supply proposed LNG facilities. This makes the federal government’s announcements all the more important for our industry and creates opportunities to access new markets for Canadian resources.”
Edited from press release by Claira Lloyd