British energy company BG Group will delay a plan to build an LNG-export terminal near Prince Rupert.
The company had planned to start work on the terminal in 2016, but will now likely push back that start date by several years.
Madeline Whitaker , CEO of BG Canada, told the Wall Street Journal the company still sees potential in Canadian-supplied LNG but is taking a more cautious approach because of uncertainty around the price of gas and an expected glut of LNG from plants in the United States.
Earlier this month, Petronas CEO Shamzul Azhar Abbas warned that an unfavourable tax scheme with regard to the company’s Pacific NorthWest LNG project could delay a final investment decision by several years.
On October 22 the B.C. government revealed its LNG tax , proposing a net income tax rate of 1.5% when production begins and 3.5% after a project’s capital costs are recovered. An earlier proposal in February had set the second-tier rate at 7%.
Read BIV columnist Joel McKay’s take on commodity prices and LNG.
