B.C. awards $120 million in credits for roads and pipelines
By Scott Simpson
Vancouver Sun
August 12, 2009
The British Columbia government has awarded $120 million in royalty credits to support 31 new road and pipeline projects, Energy Minister Blair Lekstrom announced on Wednesday.
The money will be provided to 19 companies for 31 oil and gas infrastructure projects, improving access to underdeveloped areas of northeast B.C., Lekstrom said in an interview.
Since the government created the program three years ago, it has led to development of 58 new roads and road upgrades, and 52 pipeline projects.
The most recent call for projects attracted 68 bids with a total value of $760 million.
B.C. does not provide the funds for the projects — instead, oil and gas drilling companies finance them and recover their investments by foregoing resource royalty payments to the government until they’re fully paid back.
The projects are spread across northeast B.C. — although there are notable concentrations in the Horn River and Montney areas which are two of North America’s hottest natural gas exploration plays.
“These projects represent new and improved infrastructure that will provide more jobs and opportunities for British Columbians,” Lekstrom said in a government news release. “This increased activity and new production will generate additional royalty revenue to the province.
“Roads and pipelines deliver economic stability and the opportunity to develop the oil and gas industry which, in turn, brings revenues that help to fund education, health care and social programs for everyone.”
Posted by Arthur Caldicott on 13 Aug 2009