AMSTERDAM: AltaGas Ltd has put its investment plan of C$600 million ($464mn) on hold over an ongoing dispute over the tax on imported equipment. AltaGas has drawn a plan to export Liquefied Natural gas (LNG), but couldn’t take it forward as it’s involved over a tax dispute with the government. AltaGas is optimistic that the dispute will be resolved shortly and expected to take the project off in November.
Headquartered in Calgary, Canada, AltaGas Ltd is disagreeing on a 25 percent customs duty on a C$300-mn floating LNG facility. AltaGs would like to import this floating LNG facility equipment from China.
John Lowe, Executive Vice-President (Corporate Development), AltaGas, said: “The company is optimistic that a federal decision on its appeal expected in November will mean the project wouldn’t have to pay any tax.”
AltaGas is in the process of developing LNG export terminal, first one in the country, which is expected to be completed by 2018. However, an international report expressed its doubt that building such export terminal may not be possible even by 2020. But, AltaGas shrugged it off saying it would prove them wrong.
AltaGas is also working on Douglas Channel LNG terminal in British Columbia (BC), which has been acquired by AltaGas early this year. The first phase of the project targets the shipment of 550,000 tons of LNG annually. Douglas Channel project is smaller than other projects being proposed on British Columbia.
