Canada intends providing tax relief for new investments in its LNG industry, said Canada's Prime Minister Stephen Harper on Thursday.
"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," said a statement on Harper's government website.
"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.
Canada benefits from large natural gas reserves, but has limited capacity to supply it to emerging international markets where demand is growing, the statement said.
Canada had 67 trillion cubic feet (2 trillion cubic meters) of proved natural gas reserves by the end of 2012, according to the U.S.' Energy Information Administration.
"The International Energy Agency expects global LNG trade to rise by 40 percent between 2013 and 2019," said the statement, adding that the agency expects growth in gas demand in Asia to represent half of the world’s incremental needs over that period.
According to Canada's National Energy Board, there are 11 approved LNG export license applications in the country, while 16 applications are still under review.
"LNG is something that we want to develop. We want to see our exports hit the market," Canada's Ambassador to Turkey, John T. Holmes told The Anadolu Agency on Dec. 18 while explaining that Canada is planning to target the European and Asian-Pacific markets in the long-term.
In 2013, Canada exported 80.9 billion cubic meters of natural gas, all of it to the U.S., with the majority exported by pipeline.
This is 5.9 billion cubic meters lower, or 7 percent less, than in 2012, according to the National Energy Board.
Natural gas exports volume reached as high as 92.3 billion cubic meters in 2009, figures show.
By Ovunc Kutlu
Anadolu Agency
ovunc.kutlu@aa.com.tr