The B.C. Liberal government is putting up to $120 million in royalty credits to spark the next round of infrastructure development in the petroleum and natural gas sector.
Beginning Thursday, the Energy Ministry will accept applications from resource companies to invest in new or upgraded roads and new pipelines that generate economic development and job creation in the oil patch.
Although the energy company must fund the entire cost of a selected infrastructure project, it will then be able to recover up to 50 per cent of an approved project’s cost.
The cost recovery will come in the the form of credits that reduce the natural resource royalties it must remit to the government.
In a news release Thursday, the Ministry says applications will be accepted until 2 p.m. PDT on April 4.
It also says only projects which offer the highest economic benefits for the province will be approved.
The intiative should represent a major economic plus for the Peace River region and the first evidence of that could come next Wednesday after the February natural gas and petroleum sale.