Repsol Canada – Tax Court of Canada finds that an LNG conversion terminal and jetty were one asset for the processing of goods and not for natural gas distribution

C.Miller J found that the LNG terminal and jetty in St. John were one asset for CCA purposes because the jetty contributed to the process at the terminal of converting the LNG into gas form. Before a change in the rules, that asset qualified as a Class 43 property because it was engaged in "processing" (as conversion from LNG to gas form represented a change in the goods, and rendered those goods more valuable) and it was not a "distribution" asset: distribution did not commence until at least the delivery of the (converted) gas to the transmission pipeline.

Neal Armstrong. Summary of Repsol Canada v. The Queen, 2015 TCC 21 under Sched. II, Class 1.