Norway recommends changes in petroleum tax to relieve LNG projects

Oct 05, 2001 02:00 AM

Norway's government gave its recommendation for changes in the country's petroleum tax laws that would result in tax breaks for LNG projects. The tax changes are being introduced specifically for the development of gas fields, which require the building of large-scale cooling facilities.
The changes mean that companies with projects that fall under this plan will be able to make larger annual tax deductions over a shorter period of time.

Costs for purchasing production facility material and pipelines may be depreciated over a three-year period if a facility's gas is to be cooled to liquid form. Gains and losses will also be subject to three-year depreciation. Currently, the depreciation period is six years.
The changes are to be voted on in parliament, where a majority is expected to vote in favour.

Source: Dow Jones via Energy24