The Province will stimulate economic growth and job creation through another installment of the Infrastructure Royalty Credit Program (IRCP).

The program encourages new private-sector investment with up to $120 million in royalty credits available to build new or upgraded all-season 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 program also support the Province's emerging liquefied natural gas (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 April 17, 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 program was created in 2004 and is unique in North America. It 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 $2.1 billion.

The Request for Applications information can be found at: http://www.empr.gov.bc.ca/OG/oilandgas/royalties/infdevcredit/Pages/default.aspx

Quote:

Minister of Natural Gas Development Rich Coleman -

"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."

Quick Facts:

• This will be the 14th instalment of the Infrastructure Royalty Credit Program. 
• Based on past instalments of the program, the Province anticipates a Return on Investment of two-and-a half-times the royalty credit released. Five years from now, a $120-million investment translates to approximately $300 million in royalty revenue.

Learn More:

Details about the Infrastructure Royalty Credit Program, including the Request for Application and information about previous instalments, 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

Further details about B.C.'s growing LNG industry can be found at: www.LNGinBC.ca 

Media Contact:

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