Federal government to rule on spat between steel fabricators, LNG Canada

Federal government to rule on spat between steel fabricators, LNG Canada

Federal government to rule on spat between steel fabricators, LNG Canada

Yesterday, the Globe and Mail reported on LNG Canada’s attempt to urge the federal Finance Department to look at the unintended consequences of duties of 45.8% on large LNG components that we need to source outside of Canada, because there are no module yards that can handle the super-sized modules required for an LNG facility.

The federal government’s decision is an important one, as the duty would add about half a billion dollars to the cost of the project, depending on how the duties are applied. This would challenge our project’s ability to be competitive.

Susannah Pierce, LNG Canada’s Director for External Relations, was interviewed for the article and says that LNG Canada did a thorough review of Canadian capability and “no such expertise exists to make it viable to assemble the Kitimat terminal from Canadian steel fabrication.”

She also pointed out that the economic benefits of importing modules from overseas would create thousands of jobs in Canada for steel workers and others to assemble the modules.

Let’s hope the federal government rules in our project’s favour so we can eliminate one more hurdle to delivering a competitive project.

Here’s a link to the full story: https://tgam.ca/2FazcWV. You may need to be a Globe and Mail subscriber to read it.

Federal government to rule on spat between steel fabricators, LNG Canada

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