This report examines the assumptions behind the BC government’s projection of a $100 billion "Prosperity Fund" from LNG exports, and finds that the returns promised to the public are not realistic.
This is the first publication of the new LNG Reality Check Series, which over several briefs will analyze the economics and environmental impacts of LNG.
*UPDATE: Since the publication of this report, the BC government has tabled its proposed LNG tax regime, and halved the LNG income tax, among other modifications. Consequently, the estimates of potential revenue in this report substantially overstate the possible LNG tax income. To see Marc Lee's early analysis of the new LNG tax regime, read A BC framework for LNG, part two: the LNG income tax. We also encourage you to read A BC framework for LNG, part one: the carbon benchmark.