British Columbia 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 the 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.
Press Release, September 18, 2014; Image: gov.bc.ca