British Columbia has significant opportunities for investment in Canadian natural gas and LNG. For more than 50 years, we have ranked second only to Alberta in natural gas production in Canada, and we are developing our resources to serve the global marketplace.
Natural gas companies in British Columbia enjoy an atmosphere ripe for investment, with abundant resources, a strategic location on the Pacific coast of North America, and a supportive business environment.
Abundant natural gas resources
British Columbia's natural gas resources are estimated at over 2,900 trillion cubic feet of gas-in-place. To put it in perspective, each year industry extracts about 4 trillion cubic feet of natural gas. Based on the amount of gas industry is able to recover and increased activity, British Columbia has over 150 years worth of natural gas supply. And, new discoveries are being made all the time.
Strategic location on the Pacific coast of North America
British Columbia has the shortest sea route between North America and Asia. We build on this natural advantage with an efficient supply chain and superior transportation routes across North America.
Supportive business environment
British Columbia offers low corporate tax rates, royalty credits, tax credits, and refunds for investments in research and development, machinery, and equipment.
Our streamlined regulatory environment means transparent and efficient project reviews. Our tenure structure eliminates the need to purchase land, reducing the upfront capital required. We also help you through the process of consultations and provide an extensive network of sector-specific information and contacts.
Canada’s sound financial system and stable national economy allow businesses to invest with confidence.
British Columbia’s centres of excellence spearhead leading research in exploration and development that feeds our network of world-class geologists. We also offer sophisticated geological data systems and an educated, diverse, and multilingual workforce.
British Columbia businesses have access to a steady stream of clean, environmentally sustainable power at rates that are among the lowest in North America. A robust transmission and distribution system delivers uninterrupted power to all regions, ensuring extraction costs remain low.
Watch this short video on British Columbia’s Natural Gas advantages.
Demand has skyrocketed
Global trade in liquefied natural gas (LNG) doubled between 2000 and 2010 and is expected to increase by another 50 per cent by 2020.
New drilling technology makes our vast resources accessible
British Columbia has more than an estimated 2,900 trillion cubic feet of marketable shale gas reserves, and this number is expected to increase as drilling continues. Previously inaccessible, new technologies have been allowing us to develop this valuable resource since 2005.
Liquefied natural gas allows us entry to the Asian market
The development of LNG – a shippable form of natural gas – gives British Columbia investors access to the worldwide market. We have developed an efficient regulatory system for LNG growth and are putting the necessary infrastructure in place. The first commercial LNG export facility in Canada is scheduled to open in Kitimat, on British Columbia’s central coast, by 2015. We have committed to having three facilities in operation by 2020.
Industry investment is booming
- British Columbia’s stake in the natural gas industry has already grown substantially. Industry investment almost quadrupled between 2000 and 2010, increasing from $1.8 billion to $7.1 billion
- British Columbia currently produces 1.4 trillion cubic feet of natural gas annually. From 2009 to 2010, we experienced a 42 per cent increase in year-end natural gas reserves . This represents our largest yearly increase ever, and continues a 10-year upward trend.
British Columbia offers a wide range of incentive programs for both corporations and individuals. Our oil and gas royalty programs are competitive with others in North America and facilitate development of resources that would not otherwise be economically viable.
Infrastructure Royalty Credit Program
Offers credits for up to half the cost of constructing roads, pipelines, and associated facilities to remote or underdeveloped areas in British Columbia.
Deep Well, Deep Re-Entry Well, and Deep Discover Well Royalty Credit Programs
Offers credits that reflect the increased costs associated with drilling in deep resource plays.
Marginal Royalty Program
Offers lower royalty rates for low-productivity natural gas wells.
Net Profit Royalty Program
Shares the capital risk of developments that are technically complex or remote from existing infrastructure.
Ultra-Marginal Royalty Program
A program that supports the development of shallow gas wells (up to 2,500 metres for vertical wells and up to 2,300 metres for horizontal wells) with lower rates of production.