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

The program encourages new private-sector investment with up to $120 million in royalty credits available in the 2017 calendar year for industry to build new or upgraded all-season roads and pipelines.

Investments made as a result of the program stimulate economic activity, create jobs and facilitate growth in British Columbia’s petroleum and natural gas sector. Infrastructure built improves access to new or underdeveloped resource areas, giving operators easier access to the province’s vast natural gas resources, effectively increasing British Columbia’s capacity to supply energy to growing markets via the development and operation of a liquefied natural gas (LNG) export 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 to support development without a direct expense to government.

Companies can apply for the latest instalment of IRCP until April 21, 2017. 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 235 new or upgraded all-season roads and pipeline projects since its first instalment – a total capital investment of more than $2.7 billion.

The Request for Applications information can be found at: http://www2.gov.bc.ca/gov/content/industry/natural-gas-oil/oil-gas-royalties/infrastructure-royalty-credit-program

Quick Facts:

• This will be the 16th instalment of the Infrastructure Royalty Credit Program.
• Since 2004, the program has attracted private-sector investment into new or upgraded roads and pipelines by providing royalty deductions to companies that build the infrastructure.
• Last year’s instalment of the IRCP is supporting the construction of 15 infrastructure projects - development that is expected to result in over $370 million in new capital spending and more than 1,640 jobs.
• The IRCP prompts year-round activity and creates jobs by providing an incentive to invest in natural gas infrastructure - development that has helped the sector grow and attract interest from global companies looking to build a liquefied natural gas industry in B.C.
• To date, over 235 new or upgraded all-season roads and pipeline projects have been built as a result of the IRCP – a total capital investment of more than $2.7 billion.
• Last year, the Province introduced a Clean Infrastructure Royalty Credit Program that is attracting new private-sector funding for clean technologies which will reduce greenhouse-gas emissions linked to the exploration and production of B.C.’s petroleum and natural gas resources.

Learn More:

Details about the Infrastructure Royalty Credit Program, including the 2017 Request for Applications and information about previous instalments can be found at: http://www2.gov.bc.ca/gov/content/industry/natural-gas-oil/oil-gas-royalties/infrastructure-royalty-credit-program

For more information on British Columbia’s royalties and royalty programs: http://www2.gov.bc.ca/gov/content/industry/natural-gas-oil/oil-gas-royalties/royalties-royalty-programs

Further details about British Columbia’s growing LNG industry can be found at: http://lnginbc.gov.bc.ca/

A backgrounder follows.