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Canada intends providingÌýtax relief forÌýnew investments in its LNGÌýindustry, said Canada's Prime MinisterÌýStephen Harper on Thursday.Ìý
"The Canadian government plans to establish a capital cost allowance rate of 30 percent for equipment used in natural gas liquefaction and 10 percent for buildings at a facility that liquefies natural gas," saidÌýa statement on Harper'sÌýgovernmentÌýwebsite.Ìý
Ìý"This tax relief will be available for capital assets acquired after February 19, 2015, and before 2025," according to the statement, to ensure that Canadian gas can reach both domestic and emerging international markets.ÌýÌý
Canada benefits from largeÌýnatural gasÌýreserves, but has limited capacity to supply it to emerging internationalÌýmarkets where demand is growing, the statement said.
Canada hadÌý67 trillion cubic feet (2 trillion cubic meters) of proved natural gas reserves by theÌýend ofÌý2012, according to the U.S.' Energy Information Administration.Ìý
"The International Energy AgencyÌýexpects global LNG trade to rise by 40 percent between 2013 and 2019," said the statement, adding that the agency expectsÌýgrowth inÌýgas demand in Asia to representÌýhalf of the world’s incremental needs over that period.Ìý
According to Canada's National Energy Board, there are 11 approvedÌýLNG export license applications in the country, while 16 applications are still under review.Ìý
"LNG is something that we want to develop. We want to see our exports hit the market," Canada's Ambassador to Turkey,ÌýJohn T. HolmesÌýtold The AnadoluÌýAgencyÌýon Dec. 18 while explaining thatÌýCanada is planning to target theÌýEuropean and Asian-Pacific markets in the long-term.
InÌý2013, Canada exported 80.9Ìýbillion cubic metersÌýof natural gas, all of it to the U.S., with the majority exported by pipeline.
This is 5.9Ìýbillion cubic meters lower, orÌý7Ìýpercent less, thanÌýinÌý2012,Ìýaccording to theÌýNational Energy Board.Ìý
Natural gas exportsÌývolumeÌýreached as high asÌý92.3 billion cubic meters in 2009, figures show.ÌýÌý
By Ovunc Kutlu
Anadolu Agency
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