BC’s Minister of Natural Resources remains optimistic about the province’s LNG potential despite criticism over the delay of its tax regime, and a recent mega natural gas deal between China and Russia.
Speaking to reporters at a government-sponsored international LNG conference, Rich Coleman says there is no disagreement in regards to the tax rate.
“It’s not really anything in dispute, it’s about how we’re going to do levers, so how are we going to handle offsets relative to reducing green house gases on a certain level of GHG’s we’ll accept for clean. It’s things like how are we going to deal with our infrastructure royalty program to help them, to make sure they can build the roads and bridges and access to the field. All of those pieces are very important to the total package.”
He adds “I’m quite comfortable with the competitive side of this thing. And you know what, if you look at the growth potential in natural gas into Asia, there is room for all of us.”
Coleman says competition is healthy.
The value of the contract, signed between Russia and China amid growing isolation of Russia by traditional customers in the West , is pegged at $400 billion and covers a 30-year period.
The Russian gas, expected to flow to China by pipeline as early as 2018, would represent about a quarter of China’s current annual gas consumption.