British Columbia boosts natural gas industry
To stimulate job creation and industry growth in the oil and gas sector, British Columbia will make available $120 million in royalties for new road and pipeline projects under the Infrastructure Royalty Credit Program (IRCP).
New investments in infrastructure projects will increase industry’s access to abundant resource areas, and support work in exploration and production, providing well-paying jobs and business opportunities in northeast British Columbia.
New road and pipeline projects
Since 2004, the province has awarded over $830 million in royalties to oil and gas companies through IRCP, resulting in more than 200 new or upgraded all-season roads and pipeline projects in BC over the last 10 years. These projects represent a total capital investment of over $1.9 billion, without any direct cost to the government.
The program requires oil and gas companies to fund the entire cost of an approved infrastructure project. Once completed, the companies are then eligible to recover up to 50% of the project’s costs. This approach encourages year-round activity and generates additional royalty revenue to the province.
Economic benefits
Oil and gas companies can apply for the latest installment of IRCP until 16th April 2014. Applications will be ranked according to their potential benefits, with approval going to the projects that demonstrate the highest economic benefits to British Columbia.
Comments
Minister of Natural Gas Development, Rich Coleman, commented: “The Infrastructure Royalty Credit Program continues to play an important role in helping natural gas and oil companies make significant investments in roads and pipeline infrastructure. The program gives an incentive to companies to capitalize on our resources while giving a fair return to the owners of our resources; British Columbians.”
The Request for Applications information can be found here.
Adapted from press release by Katie Woodward
Read the article online at: https://www.worldpipelines.com/business-news/26022014/bc_boosts_natural_gas_industry_109/
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