OTTAWA, O.N. – The Globe and Mail is reporting that the Federal government has conceded that LNG Canada can’t source steel domestically for the LNG facility.
The decision could clear the way for the project to be exempt from steel tariffs. The Globe and Mail say unnamed officials from the Prime Ministers office have told LNG Canada it agrees the project will need to be built from imported steel.
LNG Canada requested an exemption from tariffs on the steel needed to build the facility. The tariffs could have added $1 billion to construction costs.
The Federal Court of Appeal – which is the same court that quashed Trans Mountain’s approval – is expected to issue a decision by the end of the month.
Shell Canada and its partners are expected to make a final investment decision soon about the LNG facility that could cost $36-billion near Kitimat.