Issue link: http://resourceworld.uberflip.com/i/294363
12 www.resourceworld.com A P R I L / M A Y 2 0 1 4 That's still less than the numbers touted by government. Global energy consultants Wood Mackenzie analyst Asish Mohanty said even three projects are unlikely to be online by the province's 2020 target. More likely, there might be "a few" projects seen soon after 2020. And proponents are keeping a wary eye on costs vs. likely revenues. No one, especially Chevron, wants a repeat of their Gorgon LNG fiasco in Australia, where the price rose from its original cost-to-build estimate by 45% to US $54 billion. Already, Apache is looking to sell part of its inter - est in Kitimat LNG to reduce its exposure before deciding whether to proceed, and Chevron says it must have acceptable gas- sale contracts in hand before moving ahead. Another factor that will play heavily into the FIDs is government's plan to levy a 1.5% on LNG plants when they start construc - tion, followed by a 7% tax on income from the plants once they're operational and capi- tal costs are recovered. Early estimates show the tax could generate hundreds of millions of dollars per plant for the province. CAPP and at least two proponents are concerned about the tax plan, while others warn of fierce negotiations over it – nego - tiations which, if unfavourable to industry, could cause some players to close up shop. Shell Canada spokesman, David Williams, has said the tax could make BC LNG uncom- petitive. And Petronas is concerned the LNG tax will add to an already large tax basket in BC which includes a carbon tax. LNG tax legislation will be introduced in the fall, with the detailed tax code ready in Spring 2015. But a government-commissioned Ernst and Young survey concluded BC's all-in taxes – corporate, federal, provincial, municipal, carbon and the new LNG tax – put the province near or at the top compared to the tax regimes of potential competi - tors in Australia and the US. The BC plan "appears competitive relative to the exist- ing frameworks in Australia and the five US states", states the review, with the proviso that their analysis didn't take into account any "discretionary credits that a proponent may or may not be able to obtain". The analysis included an aggregate