By CHAT News Today

HELIUM ROYALTY RATE SET

Unlocking helium potential in Alberta

May 14, 2020 | 7:18 AM

EDMONTON- The provincial government has established a helium royalty rate that it says will help set the stage for investment while ensuring a fair price for Albertans.

The rate has been set at 4.25 per cent and is retroactive to April 1.

The government says setting the rate “provides investor certainty to develop an untapped resource that could help diversify the economy and bring jobs to Albertans.”

A press release goes on to state that several companies have expressed interest in investing in Alberta’s helium potential, but the lack of a royalty rate has been a disincentive.

“Removing this barrier unlocks the potential to develop helium deposits in southeastern Alberta and sets us up to take advantage of the close proximity to the United States, the world’s largest helium consumer,” said Energy Minister Sonya Savage. “Economic diversification is an essential part of the province’s recovery efforts and sets a course towards future prosperity.”

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The province says global demand for helium is growing, in part because of its use in medical imaging, electronics and space exploration.

The royalty rate is set for an initial period of five years and will be reviewed at that time.

The helium royalty rate is being established through amendments to two regulations: Natural Gas Royalty Regulation, 2009; and Natural Gas Royalty Regulation, 2017.

Canada has the fifth largest helium reserves in the world. Saskatchewan is currently the only commercial helium producer in Canada.