As part of its Natural Gas Strategy, the Province is providing up to $120 million in royalty credits to encourage oil and gas development in British Columbia.
The Infrastructure Royalty Credit Program is designed to encourage new investments and create more jobs that may not have occurred otherwise. The new investments will improve access to natural-gas deposits and support year-round exploration and production. In addition to supporting the natural gas sector, the investments will foster the development of British Columbia's newest industry - liquefied natural gas.
Since its inception in 2004, the Infrastructure Royalty Credit Program has led to the development of 84 new road-based ventures and 115 new pipeline projects. This has accounted for more than $1.4 billion in capital investment and about $5 billion in private-sector drilling and other investment activities.
As part of the latest instalment to this program, the Ministry of Energy and Mines will start to accept applications beginning today from companies who want to invest in projects such as new or upgraded roads or new pipelines.
To participate, successful applicants will be required to fund the entire cost of the projects. Once completed, they will become eligible to recover up to 50 per cent of an approved project's costs through credits that reduce the natural resource royalties they must remit to government.
Only projects which offer the highest economic benefits to British Columbia will be approved. Applications will be accepted until April 19, 2012 at 2 p.m. PDT.
The Request for Applications information can be found at: http://www.empr.gov.bc.ca/OG/oilandgas/royalties/infdevcredit/Pages/default.aspx
- This will be the 11th instalment of the Infrastructure Royalty Credit Program.
- The Province aims to achieve a five-year rate of return on investment of $2.50 per royalty-credit released.
- Five years from now, the 2012 allocation of infrastructure royalty credits is expected to generate new net incremental royalties of approximately $300 million.
Details about the Infrastructure Royalty Credit Program, including the Request for Applications and information about previous instalments of the program, can be found at: http://www.empr.gov.bc.ca/OG/oilandgas/royalties/infdevcredit/Pages/default.aspx
For more information on B.C.'s royalties and royalty programs: http://www.empr.gov.bc.ca/OG/oilandgas/royalties/Pages/default.aspx
British Columbia's Natural Gas Strategy: Fuelling B.C.'s Economy for the Next Decade and Beyond, as well as the Province's LNG Strategy: A Strategy for B.C.'s Newest Industry, can be found and downloaded at: http://www.gov.bc.ca/ener/natural_gas_strategy.html
Ministry of Energy and Mines