Canadian Gas Association Welcomes and Fully Supports new Tax Treatment for LNG Facilities, Says Measure Will Drive LNG Investments and New Domestic Markets for Clean and Affordable Natural Gas

OTTAWA, Feb. 20, 2015 /CNW/ - The Canadian Gas Association (CGA) welcomes the announcement that the Government of Canada intends to establish new Capital Cost Allowance (CCA) rates to help support investment in liquefied natural gas (LNG) facilities in Canada.

The Federal Government announced that it intends to establish a capital cost allowance rate of 30 per cent for equipment used in natural gas liquefaction and 10 per cent for buildings at a facility that liquefies natural gas. This investment support will be available for capital assets acquired after February 19, 2015, and before 2025.

"LNG, a clean and affordable energy solution, has just become a much more realistic option for a number of domestic markets including northern and remote communities and the transportation sector," said Timothy M. Egan, President and CEO of the Canadian Gas Association. "The natural gas distribution industry is highly supportive of this Federal Government tax measure that will help support new LNG facility investments and expansions in Canada, supporting jobs and growth."

Natural gas utilities have been operating LNG facilities for over 40 years in Canada.  LNG can be produced and safely transported in storage tanks to a regasification facility located near large industrial facilities (like mines) or communities where it can be used for heat or to generate power. LNG can also be used as a clean and affordable transportation fuel choice for truck, rail, marine, and off road transportation operators.

"Today, well over 20 million Canadians benefit from the safe, clean, reliable, and affordable energy service that natural gas utilities provide using abundant natural gas. This tax measure will go a long way towards ensuring that even more Canadians have that energy choice. The Government of Canada announcement will support industrial development, driving environmental performance, and reducing energy costs for Canadian homes, businesses, and institutions," said Egan.

About CGA
The Canadian Gas Association (CGA) is the voice of Canada's natural gas distribution industry and its members are distribution companies, transmission companies, equipment manufacturers and other service providers. Natural gas has a central place in Canada's energy mix meeting over 30 per cent of the country's energy needs. Today over 6.5 million customers representing well over 20 million Canadians rely on natural gas for heat and power in homes, apartments, buildings, businesses, hospitals and schools.


SOURCE Canadian Gas Association

For further information: Paula Dunlop, Director, Public Affairs and Strategy, Canadian Gas Association, 613-748-0057 ext. 341, 613-614-3280,,


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