Government’s Economic Action Plan 2015 reveals that the Canadian government is taking steps to support the creation of LNG industry in the country.
Canada benefits from large reserves of natural gas but has a limited capacity to supply it to emerging international and domestic markets where demand is growing, stands in the action plan.
Canada’s Prime Minister Stephen Harper in February revealed the Government’s intention to provide accelerated capital cost allowance treatment for assets used in facilities that liquefy natural gas. This will build on Canada’s existing advantages and encourage investment in facilities that supply LNG to new markets.
Economic Action Plan 2015 further proposes to extend the maximum length of natural gas export licences from 25 years to 40 years to improve regulatory certainty for natural gas exporters.
“Taking into consideration the significant investments required for liquefied natural gas projects, and their significant anticipated economic benefits, the Government is taking additional steps to support the LNG industry and other natural gas exporters by extending the maximum limit of natural gas export licences from 25 to 40 years, to improve regulatory certainty,” action plan reveals.
LNG World News Staff; Image: parl.gc.ca