The Honourable Steve Crocker, Minister of Industry, Energy and Technology, today released the Provincial Government’s Natural Gas Resource Assessment which demonstrates the natural gas potential for the province in the Jeanne d’Arc Basin.
The assessment evaluated how much natural gas could be recovered from discovered natural gas resources in the Jeanne d’Arc Basin. This basin was the initial focus given the shallow waters, the existing producing infrastructure, and the supply and service community available to service any developments. The assessment determined that the natural gas resource base ranges from 8.1 to 11.3 trillion cubic feet (tcf) with a best estimate of 9.7 trillion cubic feet. For comparison, Nova Scotia’s Sable Offshore Energy Project estimated three trillion cubic feet of recoverable gas at the development stage and produced two trillion over a 20-year period.
The assessment represents the first comprehensive analysis of the province’s gas potential in the Jeanne d’Arc Basin, utilizing current subsurface geological data and methodologies to estimate resources.
Budget 2023 included $4.7 million to conduct the Natural Gas Resource Assessment in the offshore area to define further and understand the range of estimated recoverable gas within the Jeanne d’Arc Basin.
The Natural Gas Resource Assessment helps the Provincial Government determine the potential of Newfoundland and Labrador’s offshore natural gas as a contributor to future economic growth while offering part of the solution to the global path toward net-zero emissions. It will also provide greater certainty for investors to support the development of the resource.
Work began in the fall of 2023, focusing on evaluating 18 areas within the basin where there are proven discoveries within the significant discovery licenses (SDLs) or production licenses (PLs) in the currently producing fields of Hibernia, Hebron, White Rose, North Amethyst, and Terra Nova.
While completing this assessment, additional proven natural gas resources adjacent to or residing on the SDLs and PLs were identified. Applying industry-standard methodology based on historically discovered resources, a projection of 20 identified prospects to be evaluated indicated potential for a further 7.4 to 30.6 tcf of natural gas.
Budget 2025 includes almost $1 million for the second phase of the natural gas resource assessment to evaluate the additional prospects identified. The next phase will continue building an inventory of proven and prospective gas resources across the Jeanne d’ Arc Basin.
Completing this next phase of the natural gas resource assessment will give potential developers essential data necessary to evaluate the economic viability of commercial development, along with insights into the upside value and tie-back opportunities. It will also improve the understanding of gas availability timing and allow the province to promote its gas development opportunities.
Quotes
'Natural gas is considered a transition fuel during the transition to net zero, and the development of associated gas caps also has the potential to extend the field life of current projects in the Newfoundland and Labrador offshore area. The development of the province’s offshore natural gas could provide significant social and economic benefits. In the future, natural gas production may play a crucial role in ensuring that the oil and gas sector continues to support the province’s economy and revenue streams,' said Honourable Steve Crocker Minister of Industry, Energy and Technology.
'The release of a Natural Gas Resource Assessment is a positive step forward for the oil and gas industry as it identifies the tremendous potential within the discovered natural gas resources in the Jeanne d’Arc Basin. Newfoundland and Labrador produces significantly lower emissions at the upstream production stage compared to many other regions, positioning our province to provide a sustainable low-carbon intensity supply of natural gas. I am excited about the potential for natural gas development offshore Newfoundland and Labrador and for Energy NL members to continue to apply their expertise in the offshore for the development of a new resource sector,' said Charlene Johnson, CEO Energy NL.
Source: Newfoundland & Labrador's Ministry of Industry, Energy and Technology
