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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Shell’s Arrow Energy to cut hundreds of CSG jobs in QLD

CELOTTI WORKFORCE

January 20, 2014. The Australian, Kim Christian.

 

 

 

 

 

 

 

 

 

ARROW Energy is planning to cut jobs and reduce costs at its coal seam gas (CSG) project in central Queensland after key shareholder Royal Dutch Shell downgraded its profit forecasts.

Hundreds of jobs are believed to be at risk at Arrow which employs 1200 people.

A spokesman confirmed the company has conducted a review of staffing levels as it cuts costs.

But he was unable to give details of the number of jobs at risk.

“While the company acknowledges this will be a difficult time for employees, it is committed to supporting them through this transition,” the spokesman said.

“The company remains focused on finding additional value and reducing overall costs.”

The spokesman added that Arrow would continue to assess development options, including joint venture opportunities, as it looks to develop its gas reserves.

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