Feds, BC are shifting LNG risks to public purse, report claims

Ottawa and the British Columbia government are shifting financial risks of LNG companies onto the public purse while weakening commitment to the "polluter pays" principle, a new report suggests.

The federal and provincial governments are on track to provide almost $4 billion in support for fuel expansion of LNG exports on the West Coast, despite forecasts that global demand for the fossil fuel will peak well before most projects come online.

To date, the federal government supports the LNG industry with an estimated $1.8 billion in public financing and infrastructure funding, while BC alone has tabled a total of $2.16 billion to back LNG through direct subsidies , favourable tax rules, reduced electricity rates, electrical infrastructure development and carbon tax exemptions, acco