Tax incentives can help mitigate new technology development costs for LNG projects, says EY

Latest issue of East Coast Offshore available now

ST. JOHN'S, Feb. 25, 2015 /CNW/ - The proposed liquefied natural gas (LNG) projects in Atlantic Canada are expected to face economic challenges due to quickly evolving markets for LNG cargoes, high capital requirements, and the sheer volume of projects competing for investment in North America, says EY in the latest edition of East Coast Offshore.

According to the quarterly report, investing in new technology may benefit the LNG projects in the long run, but those projects must be balanced with near-term costs and any technology risks. Tax incentives such as SR&ED should be carefully considered and accessed if possible to reduce the financial costs of leveraging the latest technologies.

The quarterly report highlights emerging legislative, regulatory and competitive issues affecting Atlantic Canada's oil and gas industry. In this edition you'll also find sections and examples on the following:

  • Exploration and production risks on the rise
  • Oil price dips prompt project economic reviews
  • Investors looking for best bets

EY's Canadian oil and gas team is available to offer more insight into the report's findings. To reach a spokesperson, or for more information, please contact a member of our national PR team.

About EY
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY is proudly celebrating 150 years in Canada. For more information, please visit ey.com/ca. Follow us on Twitter @EYCanada.

EY refers to the global organization and may refer to one or more of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

SOURCE EY (Ernst & Young)

For further information: Erika Bennett, erika.bennett@ca.ey.com, 403 206 5157; Julie Fournier, julie.fournier@ca.ey.com, 514 874 4308; Sasha Anopina, sasha.anopina@ca.ey.com, 416 943 2637

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