"I think the message was sent by industry that what is needed is a policy framework that really supports this industry growing, expanding and exporting and a very stable fiscal environment that supports the investment to make that happen," says Ackerman.
Supportive policy framework needed for competitive LNG industry: Mayor Ackerman
From the presentations she attended and discussions she had, Ackerman says there are several things that need to happen in order for Canada to get ahead of competition in places like Australia. Those include the already established joint review panels and policy framework like the royalty credits announced at the conference, which are incentives for explorers and producers to drill.
"Right now, because natural gas is so low, it's a difference between drilling and not drilling," she argues, "and every time they go out and drill, for every dollar investing and drilling it does come back to the province… seven fold."
She also argues that changing the tax classification of LNG facilities from eight per cent declining balance to 30 per cent, giving Canada another competitive edge. She says that would make them 10 per cent more competitive than they are currently, and bring them in line with Australian companies.
"If we have the framework in place and the environment in place, we can achieve this faster than Australia can."
The City of Fort St. John recently sent a letter to the applicable Ministries indicating their support for the Canada Revenue Agency reclassification.
Ackerman says she heard several comments at the conference asking why northeast B.C. wasn't included as part of the agenda, as that's where the natural gas will be coming from. She hopes to bring some of the presentations and discussions, particularly about the global perspective and LNG as a transportation fuel, to our energy conference.
UPDATE - One gas station in Fort St. John dropped its price on Wednesday. Gateway Esso is at 139.9 compared to other stations that...