• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 8 minutes The Inconvenient Truth Of Electric Cars
  • 12 minutes The Plastics Problem
  • 4 hours SHALE MAGIC: Let the oil flow: US to lead oil output growth through 2030: ConocoPhillips chief economist
  • 4 hours Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources
  • 9 hours IMO 2020
  • 2 hours Climate change & Wildfires: More Wildfires To The Western U.S., Will Affect Tens Of Millions Of People
  • 7 hours To be(lieve) or Not To be(lieve): U.S. Treasury Secretary Says U.S.-China Trade Deal Is 90% Done
  • 9 hours Ireland To Ban New Petrol And Diesel Vehicles From 2030
  • 11 hours EIA reports 12 mm bbls Inventory draw . . . . NO BIG DEAL . . . because U.S. EXPORTED RECORD 12 MILLION BARRELS DAY OF CRUDE + PETROLEUM PRODUCTS ! ! ! THAT'S HUGE !
  • 10 hours Its called reality: Economic, policy challenges to make Asia's energy transition painfully slow
  • 10 hours Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 6 hours On the hobby side of things
  • 1 hour Democrats Green Beauty Pageant
  • 10 hours Oil Demand Needs to Halve: Equinor
Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

These Closed-Door Discussions Will Change Global Natgas

Critical talks got underway last week, in one of the most important areas on the planet for natural gas development.

British Columbia, Canada.

The province has been the epicentre of a lot of planning recently for mega-projects in liquefied natural gas (LNG). With the big driver here being the ease of shipping natgas from Canada's west coast to key markets in Asia.

But up until now project plans here have remained purely theoretical. With no developer yet taking a final investment decision on the billions in capex required to build an LNG terminal and associated infrastructure.

And the big reason is taxes.

Related: How do you Spend $35 Billion in a Town of 13,000 People?

That's an issue the provincial government is now trying to address. By kicking off discussions on a bill that will define tax terms for LNG developers.

Government spokespeople told the press last Friday that a draft version of the tax bill is expected to be finalized by the week of October 20. The terms will then be open for debate, ahead of finalization of the tax regime expected late in the month.

No details have been given on the numbers the government is looking at in terms of tax rates. But these figures could be key in determining how many LNG projects will go ahead--if any at all.

That's because project developers lately have been voicing their discontent with government policy. After officials earlier this year proposed an initial 1.5% tax rate on LNG production, escalating to 7% after capital costs have been recovered.

Related: Canada’s Shale Boom: More To Come In Montney

High-profile project backers like Malaysia's Petronas have recently said those rates are too high. Threatening to shelve their proposed $10 billion development if the government doesn't lower taxes to a more competitive level.

This could of course simply be posturing from the major. Leaving the government to a challenging decision on whether to heed the warning and drop tax rates--or go ahead with the fiscal regime as planned.

Watch for the final numbers later this month--and the knock-on effects on project planning from big firms.

Here's to putting up the numbers,

Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News