The Province has awarded $120 million in royalty deductions for 20 new projects under the Infrastructure Royalty Credit Program (IRCP), and $19.3 million in royalty deductions for seven new projects under the Clean Infrastructure Royalty Credit Program (CIRCP).
The two programs award royalty deductions to oil and gas companies that invest in specific infrastructure. The IRCP facilitates new pipelines and all-season road projects, creating jobs for service-sector employees and supporting upstream-development prospects.
The CIRCP supports private-sector investments in clean technology that reduce greenhouse gas (GHG) emissions from specific sources linked to the exploration and production of B.C.’s oil and gas resources.
The 20 IRCP projects represent an infrastructure capital investment by the private sector of $743 million and are expected to create more than 1,742 high-paying jobs in British Columbia. Five of the 20 projects use BC Hydro clean electricity, resulting in fewer GHG emissions.
The seven CIRCP projects will result in total estimated GHG emissions reductions of 0.6 million tonnes of CO2 equivalent, and $78 million in new clean infrastructure capital investment by industry.
A company must fully fund and complete an approved project before it can apply to recover up to 50% of the project’s cost in the form of a royalty deduction.
More details about British Columbia’s royalty programs can be found online: https://www2.gov.bc.ca/gov/content/industry/natural-gas-oil/oil-gas-royalties/royalties-royalty-programs