Impasse deepens over B.C. LNG tax as Shell warns 7% levy not globally competitive

Financial Post | Business

Royal Dutch Shell Plc is leading an industry pushback against the scope of British Columbia’s proposed tax on liquefied natural gas exports, extending a standoff over fiscal terms for the upstart sector.

The B.C government this week announced a two-tier tax structure for the industry as part of the provincial budget. Under the scheme, profits from LNG plants will be taxed at an initial rate of 1.2%, with rates climbing as high as 7% once companies recover capital costs associated with building the multibillion-dollar export terminals.

The B.C. government said the rates are competitive with rival export jurisdictions in Australia and five U.S. states, including Alaska, Texas and Louisiana.

We’ve been clear that the rate needs to be globally competitive if B.C. is to build an LNG industry

But Shell on Wednesday questioned that assessment, deepening an impasse that has delayed final investment decisions and threatened to snuff out a…

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Chevron find adds to Australia growth

Prometheus Institute

Chevron made a new discovery of natural gas off of Australia’s west coast, adding to other recent exploration successes in a key region for the company.

America’s second-largest energy company after Exxon Mobil said Thursday that its latest gas find was at a water depth of 3,832 feet and more than 6,000 feet below the seafloor.

Chevron announced two other natural gas discoveries off of Australia’s west coast in December, each at water depths of more than 3,000 feet. One well was drilled to nearly two miles below the seafloor.

The company said each of the wells found more than 150 feet of “net gas pay,” a measure of the vertical thickness of the hydrocarbon-bearing area.

Chevron’s latest discovery, Kentish Knock South-1, is located more than 80 miles from shore. It had 246 feet of net gas pay, which is the thickest of the three finds, but not as large…

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Partners drilling ahead Wheatstone LNG

Offshore Bulletin

Chevron’s $29 bn Wheatstone LNG project in Australia started a three-year development drilling in water depths between 118 and 228 metres. Wheatstone is a two-train project of 8.9 mtpa capacity. Major contractors include Bechtel for the LNG plant, Kencana Petroleum and Bohai Oil Marine Engineering for LNG module construction, EV LNG and Thiess for the LNG and condensate tanks.

via Upstreamonline

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