Province awards $139 million in royalty credits for oil and gas projects

Energy companies are receiving $139.3 million in royalty credits for 27 infrastructure projects that support oil and gas development and cut emissions in Northeast B.C., according to the province.

The province has awarded $120 million in credits for 20 projects through the Infrastructure Royalty Credit Program for new roads and pipelines. The province says the value of the projects totals $743 million in private capital investment, and creates more than 1,740 jobs. Five of those projects use electricity to reduce emissions, it adds. 

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Meanwhile, the province awarded $19.3 million in credits for seven projects through the Clean Infrastructure Royalty Credit Program for cutting emissions in oil and gas exploration and production.

Those seven projects represent $78 million in capital investments, and will cut emissions by 0.6 million tonnes of CO2 equivalent, the province says.

Companies must fully fund and finish a project before it can apply for the credits, which allows them to write off a portion of their costs by reducing the amount of royalties they would otherwise pay to the province for production. 

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