According to the Province, the infrastructure increases the potential of the liquefied natural gas industry by expediting development and allowing access to unexplored resource areas. As a result of drilling activities, five years from now the 2014 royalty credits are expected to generate $475,000,000 in revenue for B.C.
In a release Minister of Natural Gas Development Rich Coleman said, “B.C.’s natural gas sector supports long-term jobs and creates economic stability for communities across the North. The Infrastructure Royalty Credit Program strengthens LNG development and export by creating access to our province’s vast supply of natural gas.”
This year’s program is expected to result in more then $290,000,000 in new capital spending by industry within five years. Of that amount, it’s anticipated $146,000,000 is expected to reach service sector companies in the B.C., which will create 1,360 jobs.
Peace River North MLA Pat Pimm said, British Columbia’s royalty credit program has been very successful in building an attractive, competitive natural gas sector. The Province continues to facilitate and encourage economic activity by leveraging investor capital to create jobs and new development.”
Locally the program has helped development around the Fort St. John area with a number of projects that have either been completed or are under construction. The Jedney facility and pipeline will be in charge of delivering gas to the Spectra Energy Processing Plant. The project had a total of $41,000,000 in industry capital investment. It’s still under construction with completion expected next year.
Completed projects include the Lily Pipeline, the Caribou South Compressor and Pipelines, and the Caribou East Compressor and Pipeline.