The Province of British Columbia (B.C.) will stimulate economic growth and job creation through a further installment of the Infrastructure Royalty Credit Program (IRCP).
The programme encourages new investment from the private sector, with up to CAN$120 million in royalty credits available to build new or upgrade roads and pipelines. These royalty deductions help promote year-round activity and create jobs by providing an incentive to invest in natural gas infrastructure.
Investments made as a result of the programme also support B.C.’s emerging LNG industry by improving access to new or underdeveloped resource areas. Access to these areas makes it easier for industry to expand the province's natural gas resources, increasing the competitiveness of B.C.'s LNG industry.
Under the IRCP, a company must fully fund and complete an approved infrastructure project and then they can apply to recover up to 50% of the project's costs. This approach uses a portion of royalty revenue collected to support development without a direct expense to government.
Companies can apply for the latest installment of IRCP until 17 April 2015. Applications will be ranked according to their potential benefits, with approval going to the projects demonstrating the highest economic advantage to British Columbia.
The programme was created in 2004 and has supported the development of over 200 new or upgraded all-season roads and pipeline projects since its first installment - a total capital investment of more than CAN$2.1 billion.
Commenting on the initiative, Rich Coleman, Minister of Natural Gas Development, said: "Royalty credits keep our natural gas sector competitive by providing incentives companies can use to lower their infrastructure development costs. Through this approach, the Province is creating a business environment that enables companies to operate more cost effectively and will help establish a new LNG export industry in British Columbia."
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/27022015/british-columbia-royalty-credit-programme-338/