The Province has approved $120 million in royalty credits which will 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 increases B.C.’s liquefied natural gas (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 $475 million in revenue for the Province.

The 2014 program is expected to result in over $290 million in new capital spending by industry over the next five years. Of this total, over $146 million is expected to reach service-sector companies in B.C., creating more 1,360 jobs.

This is the 13th instalment of the infrastructure program, with the first happening in 2004. Since then, the program has supported the development of over 220 resource-road and pipeline projects. This represents more than $2 billion in private-sector capital investment.

British Columbia’s LNG industry continues grow alongside the natural gas sector. Currently, 18 LNG proposals are at various stages of development in B.C. Five LNG plants constructed between 2015 and 2024 would result in a total projected investment of $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 - known as upstream development - happening in northeast B.C.

Quotes:

Rich Coleman, Minister of Natural Gas Development -

“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.”

Pat Pimm, MLA for Peace River North -

“British Columbia’s royalty credit program has been very successful in building an attractive, competitive natural gas sector. The Province continues to facilitate and encourage economic activity by leveraging investor capital to create jobs and new development.”

Quick Facts:

• The majority of projects will be built across a wide area of the Montney Play - from the northern areas of Fort St. John to the southern landscape of Dawson Creek.
• The companies receiving credits are Arc Resources, Canadian Natural Resources, Crew Energy, Cutbank Ridge Partnership, Progress Energy Canada, Saguaro Resources and Storm Resources.

Learn More:

For more information on B.C.’s royalties and royalty programs: http://www.empr.gov.bc.ca/OG/oilandgas/royalties/Pages/default.aspx

LNG in B.C. information: www.LNGinBC.ca

For a list of LNG proposals in B.C.:
http://www.newsroom.gov.bc.ca/ministries/natural-gas-development/factsheets/factsheet-lng-project-proposals-in-british-columbia.html

Media Contacts:

Sandra Steilo
Media Relations
Ministry of Natural Gas Development
250 952-0617