VICTORIA, B.C. – The provincial government says that 27 oil and gas projects in B.C. have been awarded a cumulative total of $139.3 million in royalty credits.
In a press release issued back on September 4th, the Ministry of Energy, Mines and Petroleum Resources said that $120 million of the royalty deductions were awarded for 20 new projects under the Infrastructure Royalty Credit Program, while a further $19.3 million in deductions were given out for seven new projects under the Clean Infrastructure Royalty Credit Program.
The IRC Program facilitates new pipelines and all-season road projects, creating jobs for service-sector employees and supporting upstream-development prospects, while the CIRC Program supports investments in clean technology that reduce greenhouse gas emissions from specific sources linked to the exploration and production of B.C.’s oil and gas resources.
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The Ministry said that the 20 IRCP projects represent $743 million in private sector capital spending and are expected to create more than 1,742 jobs in B.C. Of those projects, five use BC Hydro electricity, resulting in fewer GHG emissions.
The seven CIRCP projects saw $78 million in industry spending that will result in an estimated reduction of 0.6 million tonnes of greenhouse gas emissions.
The Province said that companies are required to fully fund and complete an approved project before they can apply to recover up to 50 percent of the project’s cost in royalty deductions.