Liquified Natural Gas: B.C. Announces Royalty Credits and Grants to First Nations to Stimulate the Industry

The Government of British Columbia released a strategy for LNG development in February 2012, and has now released a one year update. The government now predicts that “LNG development is expected to create on average 39,000 new full time jobs during a nine-year construction period. There could be as many as 75,000 new, annual full-time jobs once all LNG plants are in full operation.”

On February 25 at a conference called Fuelling the Future: Global opportunities for LNG in BC, Premier Christy Clark announced that British Columbia will provide up to $120 million in royalty credits to the industry in 2013, through the existing Infrastructure Royalty Credit Program (IRCP). The program, established in 2004, allows resource companies to recover up to 50 % of the cost of roads and pipelines through credits that reduce royalties payable to government.

At the same conference, the Premier announced that the government will provide $32 million to the First Nations Limited Partnership (comprised of 15 northern First Nations) to facilitate their non-equity investment in the proposed Pacific Trails Pipeline project , a 463-kilometre pipeline planned to run from Summit Lake, north of Prince George, to the proposed Kitimat LNG facility on the coast.

LINKS

British Columbia’s Liquified Natural Gas Strategy: One Year Update is at:http://engage.gov.bc.ca/lnginbc/files/2013/02/LNGreport_update2013_web.pdf, with job forecasts summarized in a news release at:http://engage.gov.bc.ca/lnginbc/files/2013/02/News-Release-Major-progress-job-creation-evident-in-LNG-update.pdf

Liquified Natural Gas: A Strategy for British Columbia’s Newest Industry, published in Feb. 2012, is at: http://www.gov.bc.ca/ener/popt/down/liquefied_natural_gas_strategy.pdf

See the new B.C. government website at: http://engage.gov.bc.ca/lnginbc/ for all LNG developments.

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