CDN NEWS | 
US NEWS 
Energy minister say province could become major player as geography gives it advantage in shipping to overseas markets
By Gary Kean
There’s an estimated $400 billion worth of natural gas in an ocean basin off Newfoundland, and one analyst believes that assessment could position the province as a major player in the natural gas sector.
On Monday, June 1, the Newfoundland and Labrador government released the second phase of a resource assessment for the Jeanne d’Arc Basin, a shallow-water area 350 kilometres east of St. John’s.
The first study of the basin assessed resources available within existing discovery and production licences. It estimated the areas contained somewhere between 8.1 to 11.3 trillion cubic feet of recoverable natural gas.
The second phase identified an additional 10.2 to 25.5 trillion cubic feet in adjacent and unlicensed areas.
Combining the results and the range of estimates, the studies have determined that the best estimate is likely 27.6 trillion cubic feet of recoverable natural gas.
Provincial officials noted the potential $400 billion value of the resource during a media availability.
What are the options for developing the basin?
The challenge, veteran analyst and consultant Rob Strong said, is determining the best way to develop the basin, also home to Newfoundland and Labrador’s producing oil fields.
“Now that the industry understands the resource, companies can start looking at the various technologies used to develop it,” he said.
“Some might want to bring it ashore and use it for power generation. Some might want to bring it ashore, convert it to liquefied natural gas, and ship it to market.”
There has been lots of talk of liquefied natural gas in Western Canada recently, including the start of operations at a large-scale export terminal in Kitimat, B.C., in June 2025.
Strong would like to see the natural gas conversation focus more on Eastern Canada’s potential.
“The opportunity is there to get it out into the industry, get it out to the operators in particular, and hopefully, it might attract some new interest in drilling,” he said.
What does the province hope to do with the discovery?
Newfoundland and Labrador’s Energy and Mines Minister Lloyd Parrott also said the two assessments are a signal to the industry of the resource available and a solid rationale for commercial development.
He also noted that there is renewed federal support for projects that could help transition towards greener energy sources, and that natural gas is a cleaner option than oil used domestically or coal elsewhere in the world.
“The federal government has made it very clear that they’re looking to help the world transition,” Parrott told reporters. “They support what we are doing here, and I think that there’s never been a better time for us to move things forward.
“The last 10 years, we’ve sat pretty stagnant and, if we look globally, given the geopolitical situation out there, we understand that what we have … can supply the world to help us transition.”
Parrott said, in addition to a potential energy source that could help fuel the mining sector and other domestic uses, Newfoundland and Labrador’s geography gives it an advantage for exporting to more easily reached markets than Western Canada.
“We’ve received interest globally, from the feds and everyone else, and I think that there’s an opportunity for Newfoundland to position itself,” the minister said.
The province is also launching consultations with industry and stakeholders on a new offshore natural gas royalty framework.
This framework, the government said in a press release, “is intended to provide clarity, consistency, and transparency for potential investors.”
Parrott said that government hopes it can bring legislation forward this fall to formalize the offshore natural gas royalty framework.
What will the Jeanne d’Arc Basin mean to Canada’s energy industry?
Charlene Johnson, chief executive officer of Energy NL, said Newfoundland and Labrador represents one of the most promising emerging natural gas opportunities in North America and welcomed the province prioritizing the sector.
“Advancing the identification of resources in the Jeanne d’Arc Basin, along with consultation on the development of an offshore natural gas royalty framework, marks an important step toward unlocking this potential,” Johnson said in a statement.
The Oil and Gas Corporation of Newfoundland and Labrador also agrees that the findings highlight opportunities to meet global energy security priorities
“While earlier work focused on the potential development of natural gas within existing fields, this study expands the scope to include both known reservoirs and high-probability prospects in unlicensed areas near existing infrastructure,” said Jim Keating, the corporation’s chief executive officer, in the provincial release.
“Some of these prospects could support standalone development in a successful exploration scenario.”
Lisa Baiton, president and chief executive officer of the Canadian Association of Petroleum Producers, said important work has now been done to strengthen the understanding of the province’s resource potential.
“Enhanced geoscience knowledge is a constructive step toward advancing natural gas opportunities, reinforcing investor confidence, and informing policy,” she said in a prepared statement.
Newfoundland and Labrador’s oil and natural gas sector and its direct access to international markets, she said, is becoming an important player in the world’s energy industry.
“With the right conditions, the province has the potential to play a larger role in Canada’s energy sector and export capacity supporting allies with reliable supply,” said Baiton.
Share This:
PERSPECTIVE: Why Youth Awareness and Education About Energy Are So Important to Canada