B.C. Forecasts Increased Natural Gas Revenue Amid Declining Forestry Industry
The B.C. government projects natural gas royalties to reach nearly $1.3 billion for the fiscal year ending March 31, 2027, a 38% increase from the current year. In contrast, forestry revenue is expected at $521 million, a 3% rise, but significantly lower than past years. The budget also introduces a Stumpage Payment Deferral Program to assist forestry companies affected by U.S. tariffs and declining harvest volumes. The province anticipates a $13.3 billion deficit, while LNG projects are expected to bolster the economy.
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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.
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