The Province is giving more than $115 million in royalty credits to natural gas and infrastructure projects.
The Infrastructure Royalty Credit Program will give 16 companies credits for 21 road and pipeline projects, which is expected to help support exploration and development in the northeast.
It is also anticipated that the projects will help create development in areas that are currently underdeveloped and be a source for new jobs in the region.
Energy Minister Bill Bennett told CHNL that the province’s investment should help generate more revenue from royalties.
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The program gives natural gas and petroleum companies up to 50 per cent of a projectâ€™s costs through royalty deductions if they invest in road and pipeline infrastructure. However, companies are required to fund the entire project on their own and only receive the deductions when a project is finished.
The current projects were chosen due to their potential economic benefit to the province.
In the past six years, the program has awarded more than $485 million to these types of projects which led to the completion of 71 road projects and 83 pipeline projects.