B.C. Government Admits $1.5 Billion Error in Natural Gas Royalties Budget
The government of British Columbia has admitted to an error in their 2026 budget that overestimated natural gas royalties by $1.5 billion over five years.
Experts, including Simon Fraser University economics professor emeritus Nancy Olewiler, say the province may be underestimating the size of the mistake, which could lead to tens of billions of dollars in lost revenue for British Columbians.
The error is related to the 'plant inlet price,' a calculation used to determine the market price of gas. Olewiler believes that the province neglected to subtract transport and processing costs, leading to an overestimation of profits.
Treaty 8 First Nations have also raised concerns about the new royalty framework, which they claim will only capture 11-14% of industry profits. The government has promised to provide an updated royalty forecast in September.