B.C. government to forgo natural gas royalties to boost investment

Despite facing a $1 billion shortfall from conventional gas royalties, the B.C. government plans to forgo future royalties from the nascent natural gas industry in ...

Despite facing a $1 billion shortfall from conventional gas royalties, the B.C. government plans to forgo future royalties from the nascent natural gas industry in order to kickstart it, Rich Coleman said Thursday.

At a BC Energy Conference in Dawson Creek, the deputy premier and energy and mines minister announced $120 million worth of “royalty deductions” that he said will lead to investment in 21 infrastructure projects in northeastern B.C., where most of B.C. natural gas is located.

The credits are intended to “expedite” the growth of the natural gas industry, including the liquefied natural gas sector, by giving incentives to capital investments in basic infrastructure such as roads.

According to a government press release, companies participating in the program would be able to recover up to 50% of a project’s cost through deductions that reduce the royalties those companies would pay later. The program is expected to generate $260 million in new spending in B.C., according to the new release.

It’s not clear how much the province stands to lose in future royalties. Just last week, Finance Minister Mike de Jong announced severe belt-tightening measures in response to drastically falling natural gas royalties.

Natural gas prices are so low, the province now expects to see royalties it collects from that sector drop by about $1.1 billion over three years.

nbennett@biv.com

@nbennett_biv

comments powered by Disqus

More from Mining & Energy

Luna brings True Gold’s winning team on board

Five former senior executives from True Gold join Luna

Read Article

Coleman still believes in LNG boom

Don’t count out a liquefied natural gas boom just yet, Natural Gas Minister says

Read Article

Tsleil-Waututh oppose Fortis pipeline

Cultural artifacts in path of gas line that would serve Woodfibre LNG, First Nation members say

Read Article

Study raises concerns over fracking’s impact on BC Hydro dams

Hydro says no chance of fracking causing a dam breach, but damage possible

Read Article

Mount Polley disaster revisited: it could have been worse

Two years after the mine’s massive tailings pond collapse, the tarnished Golden Triangle environmental and economic fallout continues

Read Article

Subscribe to our mailing lists

* indicates required

Newsletters

* You can modify your newsletter subscriptions at the bottom of any newsletter you receive.
×