B.C. Forecasts Increased Natural Gas Revenue Amid Declining Forestry Industry
The B.C. government forecasts natural gas royalties of nearly $1.3 billion for the fiscal year ending March 31, 2027, marking a 38% increase, while anticipating forestry revenue at $521 million, up 3% but significantly lower than previous years. A record provincial deficit of $13.3 billion is projected, widening from $9.6 billion this year.
The budget introduces a Stumpage Payment Deferral Program to alleviate challenges in the forestry sector, which faces high U.S. tariffs. Positive prospects are noted for LNG, with Shell-led LNG Canada exporting from Kitimat and several projects under construction, supported by government initiatives to expedite energy developments.
