To stimulate job creation and infrastructure investments, Premier Christy Clark announced that the Province of British Columbia is providing up to $120 million in royalty credits to industry.
“We have a real opportunity to create significant wealth and jobs for British Columbians through continued support to our natural gas sector,” said Premier Clark. “This program keeps our natural gas sector competitive by encouraging investments in new roads and pipelines, which will help B.C. transition into a global supplier of cleaner energy and a world leader in liquefied natural gas.”
The details of 2013 Infrastructure Royalty Credit Program (IRCP) were revealed to an international audience at the Fuelling the Future: Global opportunities for LNG in BC conference.
The IRCP was created in 2004 and is unique in North America. It is designed to encourage new capital investment and project development in roads and pipelines. Since its inception, it has led to the development of 82 new road-based ventures and 133 new pipeline projects. This has accounted for more than $1.7 billion in capital investments.
The program provides industry with deductions that can be used to recover a portion of royalties owed to government – after a project is complete and generating revenue. This is the 12th instalment this program has made available to industry.
The IRCP will help meet the needs of an emerging liquefied natural gas industry – a new industry for B.C. that will increase the value of B.C.’s gas and bring revenues to Province. By supporting growth and the prospects in natural gas, IRCP will help expedite access to new and underdeveloped resource areas. Access to these areas is key to B.C’s LNG industry.
The Ministry of Energy, Mines and Natural Gas now will accept applications for the program from companies that want to invest in new roads and pipelines. To participate, successful applicants will be required to fund the entire cost of a project proposal.
Once completed, they are 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.
The Fuelling the Future: Global Opportunities for LNG in BC conference is currently underway in Vancouver. Speakers from around the globe are sharing their knowledge and expertise about the diversification of the natural gas industry. Multiple panel discussions, including topics ranging from skills training and the latest market developments, are a focus of the event.
LNG World News Staff, February 26, 2013; Image: gov.bc.ca