$292 Million Average Decrease in Forecasted Royalties Due to BC Ministry Error

The Ministry of Energy in British Columbia conducted an internal review following an administrative error in their natural gas price forecast. The error resulted in a decrease of $292 million on average per year in forecasted royalties until 2031.

The review was initiated after the potential error was identified in July in the 2026 budget's petroleum and natural gas revenue forecast. An internal audit found that the unit and currency conversions used in the natural gas price forecast were incorrect.

The province stated that it is not due to a lack of accounting for transportation and safety costs, as previously claimed. The error led to an adjustment in the forecasted royalties, resulting in a decrease of $292 million per year on average until 2031.