British Columbia has increased the competitiveness of its royalty program to boost the province’s natural gas sector and support the long-term prospects of an LNG industry.
Deep well drilling
Industry operating in BC will benefit from the expansion of the Deep Well Royalty Credit Program, effective 1st April 2014. Through the provision of credits for deep well drilling, companies will increase their investments in the industry, creating further direct jobs.
The province is also updating its Ultra-marginal Royalty Program, which reduces the royalties paid by industry from wells that have a low rate of production.
The revenue generated from these improvements is expected to be CAN$ 2.9 million over the next three years. Operators will only be eligible for one program at a time.
Expanding or introducing new royalty programs is essential to ensure the natural gas sector remains competitive. As such, it is an essential part of the government’s 10-year Natural Gas Strategy.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/17032014/royalty_program_offers_lng_incentives_in_bc_295/