The provincial government is developing project development agreements with proponents, working with First Nations to strengthen environmental stewardship, and partnering with trades associations to increase skills training – proactive measures to put British Columbia in the best possible position to have a competitive new liquefied natural gas (LNG) industry.

Collectively, these measures will ensure operations in B.C. are globally competitive as proponents consider the economic challenges of the energy marketplace, particularly those outside of the Province’s control, such as natural gas prices and contractual arrangements between buyers and suppliers.

Facts:

• To date, the Province has signed 63 natural gas Pipeline Benefit Agreements with First Nations. These agreements will ensure that First Nations can participate and benefit from LNG opportunities.
• The provincial government established Long Term Royalty Agreements with natural gas producers. These agreements are signed with industry who is producing petroleum and natural gas in the province. They are useful for any producer who has a long-term arrangement to supply natural gas to an LNG export facility.
• British Columbia delivered on a LNG income tax initiative. This tax provides proponents with the certainty they need to make their investment decisions, while giving British Columbians benefits from revenue that LNG will bring.
• The premier established a Working Group on Labour in partnership with First Nations, governments, industry and organized labour to help plan for skills training, marketing and developing best practices for LNG in B.C. To date, there are 1,800 people working in the LNG industry right now in B.C.
• The provincial government released the B.C.’s Skills for Jobs Blueprint, which is re-engineering our education and skills training programs throughout the Province to focus on in-demand jobs, like the LNG sector. Since launching the Blueprint, an additional $108 million has been directed to the trades at post-secondary institutions.
• British Columbia brought in Project Development Agreements with LNG proponents. These agreements provide certainty to proponents that they will not face significant increases in specific taxes and/or environmental charges which are under provincial control for the term of their agreement.
• The provincial government offers an eDrive electricity rate to LNG proponents who choose to use electric drives for compression, reinforcing British Columbia’s global leadership in reducing greenhouse gas emissions while growing the economy.
• Working with First Nations, the Province established the Environmental Stewardship Initiative to create high-quality, accessible and trusted environmental information. The program will be long-term to train First Nations so they can monitor and assess land activities linked to LNG – including pipelines – on their traditional territory.
• British Columbia has hosted three international conferences to provide a platform for discussions with proponents, First Nations and international stakeholders. Sessions have addressed investment, partnerships, global markets, technology and innovation, and more.
• Strong regulations with transparent oversight by the BC Oil and Gas Commission continue to increase B.C.'s competitive edge in the global market. Proponents and international stakeholders feel secure about their investments in a jurisdiction with strong regulatory oversight in place and a long history of exploring and producing natural gas.
• Trade missions have also played a critical part in British Columbia’s strategy to diversify international trading partners and secure new investment.