Alberta prepares royalty incentives for new oil and gas projects — OilPrice
Canada’s province of Alberta plans to introduce a new preferential royalty system in November to stimulate investment in oil and gas production. Provincial Premier Danielle Smith said this during an industry event in Fort McMurray, OilPrice reports.
Conditions for investors
The Alberta government sets the terms for resource development and royalty rates, as the province owns 81% of mineral rights. The new royalty regime is to be designed to encourage companies to invest in new oil production.
Smith said at the Oil Sands Expo that changing the terms could increase companies’ interest in expanding production. At the same time, she noted that the government still needs to complete work on the new system.
More current news is available on the UA.News Telegram channel Telegram.
Pipeline to the coast
The province is also proposing to build an oil pipeline to the coast of British Columbia with a capacity of 1 million barrels per day. Alberta seeks to increase production and supply more oil to Asian markets, reducing dependence on exports to the United States.
In the summer, the provincial government submitted the West Coast Oil Pipeline project to the federal Major Projects Office to have it included in the list of projects of national significance. Alberta also announced its intention to cooperate with Trans Mountain Corporation and Pembina Pipeline to develop the project.
Provincial authorities expect the project to receive national-significance status by October 1, 2026, and all approvals and permits by September 2027. Separately, the Canadian federal government this week announced a reduction in the marginal effective tax rate on new business investment from about 13% to 6.4%.
