The province has approved $120 million in royalty credits, which will lead to the development of 30 new infrastructure projects in northeast B.C.
The building of these projects will create more than 2,085 direct jobs, the B.C. government says.
Twelve companies are being awarded credits under the 2011 Infrastructure Royalty Credit program.
New and upgraded roads and pipelines will improve access to underdeveloped areas and increase year-round production activities, which are to generate more jobs and more business opportunities in the province’s petroleum and natural gas sector.
Industry funds the entire cost of each infrastructure project. Companies can then apply for a credit of up to 50 per cent of the construction costs, which are applied against the royalties companies pay to the province.
The province continuously evaluates the program and follows up on what other jurisdictions are doing.
Projects were awarded credits under the infrastructure royalty credit program following a request for applications and careful evaluation of each project’s economic benefits to British Columbia.
As in previous years, industry’s response to the request for applications was very strong. Forty nine applications, involving a total request of approximately $527 million in estimated construction costs, were submitted to the Ministry of Energy and Mines for review.
“Our royalty credit program has been very successful in helping us build an attractive, competitive petroleum and natural gas sector,” says Rich Coleman, minister of energy and mines. “The province continues to facilitate and encourage economic activity through this program by leveraging investor capital to create year-round jobs and increase development in northeast B.C.”
