Canada’s Prime Minister Stephen Harper today announced the Government’s intent to support the creation of new and well-paying jobs in the emerging liquefied natural gas (LNG) industry.

He was joined by James Moore, Minister of Industry, Alice Wong, Minister of State (Seniors), Wai Young, Member of Parliament for Vancouver South, and Bob Zimmer, Member of Parliament for Prince George–Peace River. -

In order to ensure that Canadian natural gas can reach new and growing international markets, and make it accessible for new domestic uses, the Government intends to establish a capital cost allowance rate of 30% for equipment used in natural gas liquefaction and 10% for buildings at a facility that liquefies natural gas. This tax relief will be available for capital assets acquired after 19th February 2015, and before 2025. 

Canada has an important opportunity to build on its record of developing natural resources in a responsible manner while securing long-term prosperity for Canadian families. Canada benefits from large reserves of natural gas but has limited capacity to supply it to emerging international and domestic markets where demand is growing. 

This measure will allow companies investing in new facilities that liquefy natural gas to create jobs and economic growth, while recovering their investment more quickly. It will also encourage investment in facilities that liquefy natural gas to supply emerging international and domestic markets.

Quick Facts

  • The supply of LNG to both domestic and international markets represents an important new market for Canadian natural gas production.
  • The International Energy Agency expects global LNG trade to rise by 40% between 2013 and 2019.
  • Over the International Energy Agency’s projection period, growth in natural gas demand in Asia is expected to represent half of the world’s incremental needs.
  • In domestic markets, LNG is increasingly used in remote power generation and the high-horsepower engines used in trucking, shipping, rail, drilling rigs and pressure pumping services.
  • LNG has the potential to significantly reduce greenhouse gas emissions internationally when it replaces coal for power generation and replaces diesel in many domestic applications.

“Our Government is committed to providing the right conditions so that industries and businesses can succeed and compete in the global economy, by lowering taxes, cutting red tape and encouraging entrepreneurship.  Today’s announcement builds on our low tax plan for jobs and growth, strengthening the already strong case for business investment in Canada,” stated Harper.