Clark says the investment will help the province on a global scale.
“We have a real opportunity to create significant wealth and jobs for British Columbians through continued support to our natural gas sector. 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.”
Details of the 2013 Infrastructure Royalty Credit Program (IRCP) were debuted to an international audience at the Fuelling the Future: Global opportunities for LNG in B.C. conference.
The program, unique to North America, was established back in 2004 and was designed to encourage new capital investment and project development in roads and pipelines. Since its inception, the project has led to 82 road-based ventures and 133 new pipeline projects, accounting for over $1.7 billion in capital investments.
The IRCP also provides industry with deductions which can be used to recover a portion of royalties owed to government, once the project is complete and has begun to generate revenue.
It’s the 12th installment this program has made available to industry.
According to Premier Clark, the program will also help meet the needs of an emerging LNG industry, which will help increase the value of B.C.’s gas, as well as attract revenue to the province.
By supporting growth and the prospects in natural gas, the program will also help in expediting access to new and underdeveloped resource areas, which will be key in B.C.’s liquefied natural gas industry.
The Ministry of Energy, Mines and Natural Gas is now accepting application forms for the program, from companies that wish to invest in new roads and pipelines. To participate, applicants must be willing to fund the entire cost of a pipeline project proposal.
Once completed, the company is eligible to recover up to 50 per cent of an approved project’s costs through credits which reduce the natural resource royalties they must remit to government.
Applications will be accepted will be accepted until April 18, 2013 and projects that offer the highest economic benefits to B.C. will be approved.
To request application information, click here.