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Billions In Subsidies Flow To LNG Canada As Kitimat Terminal Nears Launch - CleanTechnica

Billions In Subsidies Flow To LNG Canada As Kitimat Terminal Nears Launch - CleanTechnica
Source: cleantechnica
Author: @cleantechnica
Published: 6/21/2025

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The article highlights the extensive public subsidies and fiscal incentives underpinning the launch of LNG Canada’s Phase 1 liquefied natural gas terminal in Kitimat, a project initially valued at around C$17–18 billion. Federal, provincial, municipal, and international support has played a critical role in reducing the project's capital costs. Notably, the federal government contributed approximately C$275 million in direct grants, including C$220 million from the Strategic Innovation Fund for advanced gas turbines and C$55 million for infrastructure upgrades like the Haisla Bridge. Beyond direct funding, significant hidden subsidies have been provided through tax exemptions and tariff waivers, such as the roughly C$1 billion exemption on import duties for fabricated steel modules sourced primarily from Asia, which substantially lowered construction costs. The article also contrasts the political reactions to LNG Canada’s reliance on large-scale imports from China with the contentious debate over British Columbia’s decision to commission hybrid ferries from Chinese shipyards. While the ferry contracts sparked vocal partisan criticism

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energyLNGsubsidiesnatural-gasinfrastructurefossil-fuelsCanada