New Tax Treatment Rules for LNG Facilities in Canada Set To Drive Investment and Growth

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The Government of Canada has announced that it will establish new Capital Cost Allowance (CCA) rates to help support investment in liquefied natural gas (LNG) facilities in Canada. FC Gas Intelligence has put together the Natural Gas for Off Road Applications Canada Summit 2015 which will address the new legislation in the LNG industry.

Specifically, the federal government announced that it intends to establish a capital cost allowance rate of 30 percent for equipment used in natural gas liquefaction and 10 percent for buildings at a facility that liquefies natural gas. This investment support will be available for capital assets acquired after February 19, 2015, and before 2025.

“This is very positive development for the LNG industry in Canada and should help projects move forward.” said Stolt LNGaz Inc. CEO Rodney Semotiuk who is building an LNG plant in Bécancour, Quebec.

The new rules pave the way for investment and growth in LNG set for domestic Canadian markets such as for the fueling of mining equipment, marine operations and for power generation in Canada’s many remote, off-pipeline communities.

“Given that LNG fuelling is here to stay, the announced tax incentive is expected to accelerate the adoption of LNG for diverse applications.” Said CDS Research President Zonher Meralta.

In response to this major trend towards natural gas fuels, the Mining Association of Canada, the Mining Association of Quebec, Gaz Metro, Stolt LNGaz Inc., Ferus Natural Gas Fuels and others are participating in a conference taking place in Montreal to address the huge investment and growth opportunities for LNG fuelling in Canada. The Off-Road Natural Gas Canada Conference & Exhibition is taking place May 13-14 at the Hyatt Regency, Montreal.

“We welcome the new tax treatment rules, and look forward to a very well attended event in Montreal,” said FC Gas Intelligence Conference Organizer Emily Rose. “We’re excited to see that the Government of Canada is encouraging growth and investment in LNG facilities.”

“As momentum behind LNG fueling continues to build, strategic partnerships and coordination between stakeholders will be central to the industries success.”

Speakers include Rodney Semotiuk CEO StoltLNGaz Inc, Pierre Arcand Minister of Energy and Natural Resources Quebec Liberal Party, Andrew Hall CEO & President Yukon Energy, Josée Méthot CEO at the Québec Mining Association, Zoher Meratla President CDS Research & John Sagman SVP and COO at Wellgreen Platinum.

The conference is taking place at the Hyatt Regency in Montreal May 13-14.

Interested parties are encouraged to download the event brochure here

About FC Gas Intelligence:

The Natural Gas for off Road Applications Canada Summit is produced by FC Gas Intelligence, a leading North American clean transportation and gas industry hub that specializes in organizing conferences, working groups and educational seminars.

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Emily Rose
since: 07/2014
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