BC LNG Deal Lets Petronas off Hook for Two Kinds of Emissions
Carbon ‘free pass’ imperils BC’s climate targets, say critics.
The B.C. government plans to subsidize Malaysian gas giant Petronas to the tune of $16 million, in part due to a promise to exclude a significant chunk of the greenhouse gas emissions from the Pacific NorthWest LNG project from compliance penalties, DeSmog Canada has learned.
British Columbia’s politicians are in a special summer sitting at the legislature right now to debate Bill-30, the Liquefied Natural Gas Project Agreements Act, which will allow the government to enter into a $36-billion agreement with Petronas and pave the way for B.C.’s first major liquefied natural gas export plant, located near Prince Rupert.
Under the terms of the 140-page deal, the province would compensate Pacific NorthWest LNG if future governments raise income tax rates for LNG operations, add carbon taxes that specifically target the industry, or make changes to rules on greenhouse gas emissions. That could result in the provincepaying out $25 million a year or more.
While the compensation clause has commanded the lion’s share of attention, DeSmog Canada has learned that the B.C. government has quietly excluded two sources of Petronas’ carbon emissions from compliance standards, which will result in the province paying out millions of dollars in subsidies.
‘Under the radar’ change
In promising the world’s “cleanest” LNG facilities, Premier Christy Clark set benchmark requirements for the facilities’ carbon emissions. If a company fails to meet the benchmark, they must pay compliance penalties into a climate offset or green technology fund.
However, the province has also created an incentive program, which promises to pay a significant portion — between 50 and 100 per cent — of those compliance fees if companies come close to meeting the benchmark.
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