The government of British Columbia (B.C.) has approved CA$ 120 million in royalty credits in a bid to create jobs and support the construction of 17 infrastructure projects in northeast B.C.
Credits will be administered under B.C.’s Infrastructure Royalty Credit Program, designed to facilitate the construction of new resource roads and pipelines. This infrastructure will increase B.C.’s LNG potential by expediting development and creating access to the province’s unexplored resource areas.Royalty revenue for government will also increase as a result of new drilling activities. Five years from now, the 2014 royalty credits are expected to generate almost CA$ 475 million in revenue for the Province.
The 2014 programme is expected to result in over CA$ 290 million in new capital spending by industry over the next five years. Of this total, over CA$ 146 million is expected to reach service-sector companies in B.C., creating more 1360 jobs.
This is the 13th instalment of the infrastructure programme, with the first happening in 2004. Since then, the programme has supported the development of over 220 resource-road and pipeline projects. This represents more than CA$2 billion in private-sector capital investment.
B.C.’s LNG industry continues grow alongside the natural gas sector. Currently, 18 LNG proposals are at various stages of development in the province. Five LNG plants constructed between 2015 and 2024 would result in a total projected investment of CA$ 175 billion and create up to 100 000 jobs.
The Infrastructure Royalty Credit Program is unique to B.C., and has kept the province’s natural gas sector competitive by attracting investment and facilitating growth. The province’s LNG potential would not be possible without the exploration and production activities happening in northeast B.C.
Rich Coleman, Minister of Natural Gas Development for B.C., said: “B.C.’s natural gas sector supports long-term jobs and creates economic stability for communities across the North. The Infrastructure Royalty Credit Program strengthens LNG development and export by creating access to our province’s vast supply of natural gas.”
Adapted from press release by Ted Monroe
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/18092014/royalty-credits-bolster-bc-lng-prospects-1428/