Why a Newfoundland Company is Offering to Stockpile Canadian Oil

Canada is one of the only G7 countries without a strategic oil reserve, and a company developing salt caverns in western Newfoundland is willing to house one — if Ottawa wants such a stockpile.

Triple Point Resources Ltd. is planning to inject salt water, in a process known as solution mining, to carve out a series of caverns in a structure known as the Fischells salt dome.

Originally, the salt caverns were going to be used to store hydrogen, but Triple Point changed its approach when plans for a wind-to-hydrogen project in the area got shelved.

Instead, the company decided to pursue storing compressed air — generated from wind turbines creating electricity for the provincial grid located nearby – to be accessed on-demand to drive the turbines when there is no natural wind. 

The compressed air storage project was registered with the Government of Newfoundland and Labrador for environmental assessment on June 12 and is now open to public review and comment until July 17.

Why does Canada need a strategic oil reserve?

That document makes no mention of it, but Triple Point is not ruling out making other caverns available for a strategic oil reserve, in addition to the one or two initially proposed to store compressed air.

At a recent conference hosted by Energy NL, an association of organizations worldwide that benefit from Newfoundland and Labrador’s energy sector, Triple Point’s chief executive office Julie Lemieux introduced the hypothetical option for the salt caverns.

During her address, Lemieux talked about how Canada does not have a strategic oil reserve.

Acknowledging that, as a net producer of oil, Canada has never needed such a reserve, Lemieux said the world is reassessing access to refined products and “the era of assuming fuel is globally available — just in time, from anywhere” — is over.

“Energy security is no longer just about production,” she said. “It is about sovereignty. It is about resilience. It is about whether Canada has strategic control over the energy it needs when the system is under stress.”

The recent closure of the Strait of Hormuz as a result of the United States attacking Iran has led to strategic oil reserves around the world being unexpectedly drawn down.

Lemieux explained how oil produced in Western Canada moves eastward by pipeline but crosses over into the United States before returning to Canada in Ontario and Quebec.

In Eastern Canada, millions of barrels of oil produced from Newfoundland and Labrador’s offshore fields are exported, but the three closest oil refineries — the Irving Oil Refinery owned by Irving Oil Ltd. in Saint John, N.B.; the Jean Gaulin Refinery operated by Valero Energy Corporation in Lévis, Que.; and Suncor Energy Inc.’s refinery in Montréal, Que. — remain largely dependent on imported crude.

“If something like the Strait of Hormuz lasts longer and now we cannot have any ships coming from abroad, how would we be able to have storage for those three refineries for multiple days?” Lemiuex asked during an interview with Postmedia.

Those refineries, added Lemieux, may only have reserves enough for maybe 10 to 20 days, while some may be relying on just-on-time shipments.

Why are salt caverns a good spot for an oil reserve?

According to Triple Point Resources, the salt caverns it could additionally construct could store between 80 and 100 million barrels of oil, which Lemieux said would be enough for a 100-day oil reserve for all three of those Eastern Canadian refineries.

If Canada chooses to do so, she continued, the Fischells salt dome asset could be an anchor that positions the Atlantic region as Canada’s energy hub for generations.

“Countries with salt caverns storage use them for strategic reserve,” said Lemieux. “Salt caverns are the global standard because they are stable, secure, scalable and proven.

“Canada has the resources to be an energy superpower. But to truly act like one, we need strategic energy infrastructure, including large-scale reserves that can support Canadians, protect Atlantic supply chains and strengthen our allies.”

What if Canada doesn’t want its own stockpile?

If Canada is not interested in developing its own strategic reserve, said Lemieux, then maybe the salt caverns in western Newfoundland could be used by some other country that would like to have a reserve but doesn’t have the capacity on its own soil to house such a stockpile.

Going down that road could generate royalties for the provincial or federal government, figured Lemieux.

“Having a stockpile on this side of the ocean, I think, would be great for France, Portugal, Spain and all those countries that are closer (to Newfoundland),” she said. “We are not that far from them.”

The idea drew support from Energy NL chief executive Charlene Johnson, who said it would be a unique contribution to the province’s energy diversification and supply and something her organization would support and help advance.

“In a period of geopolitical uncertainty where all nations are concerned about the supply of reliable energy, the added potential of a strategic oil reserve for the Triple Point Resources project certainly positions it as a project that should be given national consideration,” said Johnson.

Does Canada need an oil reserve?

In an emailed reply, the federal department reiterated that, as the world’s fourth-largest oil supplier and the second-largest within the International Energy Agency (IEA), Canada is a net exporter and continues to be exempted by the IEA from holding stocks under the IEA Treaty.

“Canada has been meeting its IEA responsibilities as a major producer and exporter of oil to the world by supporting the IEA’s current collective action through additional industry production of 23.6 million barrels,” said the department’s statement.

“Our LNG exports are also expanding, providing additional fuel to allies around the world. With Canadian production continuing to reach record highs, we will continue to supply domestic and global markets with reliable energy exports.

“We will continue to monitor our global role as well as Canadian infrastructure, transportation, and energy storage that supports our energy security.”

The department said it is “aware of proposals related to energy storage infrastructure in Newfoundland and Labrador” and that the federal government “welcomes proposals that can help strengthen energy security.”

When the Strait of Hormuz was closed in early March, effectively halting much of the world’s oil supply from being shipped out, the IEA’s member countries began coordinating the release of strategic oil reserves around the globe.

Canada, an IEA member, was already at record levels of oil and natural gas production and exports, but still began to do whatever it could to deliver oil and natural gas to global markets.

“There is minimal short‑term ability for Canadian producers to further increase production in response to supply disruptions arising from the conflict in the Middle East,” stated Lisa Baiton, president and chief executive officer of the Canadian Association of Petroleum Producers, in a press release on March 11, 2026.

“Any meaningful production growth would require additional pipeline and export capacity, which is not available today.”

In response to an interview request about Triple Point’s proposal, an emailed response from Baiton reiterated that, with one of the world’s largest untapped oil and natural gas resources on the planet and a relatively small population, Canada has significant capacity to maintain and potential to grow its energy exports while providing for the needs of Canadians.t

The creation of a national strategic reserve, she added, would require significant consultation between the federal and provincial governments, along with industry.

Still, Baiton said the situation in the Middle East underscores the need for Canada to play a much larger role in meeting the world’s energy demand and strengthening global energy security through additional transportation infrastructure.

“Canada has a long-term opportunity to play a larger role in meeting growing energy needs over time,” she said.

“Our abundant oil and natural gas resources can deliver real value — supporting partners globally while driving investment, jobs and economic growth at home. Strengthening energy transportation infrastructure will support Canada’s ability to meet this growing global and domestic demand.”

What does Newfoundland and Labrador think of the project?

The Province of Newfoundland and Labrador, acknowledging that national strategic energy reserves are a federal responsibility, said it sees potential in the concept being advanced by Triple Point Resources.

“Newfoundland and Labrador has significant natural assets, including the salt caverns in western Newfoundland, and we are always interested in opportunities that could support economic development, energy security and long-term growth for the province,” said Energy and Mines Minister Lloyd Parrott in an emailed reply to an interview request.

The minister added that the province would have to ensure that any resource development benefitted the people of the province first and foremost.

“Any large-scale development will require careful consideration of regulatory, environmental, commercial and intergovernmental factors,” he said.

Postmedia asked the Canada-Newfoundland and Labrador Offshore Energy Regulator (C-NLOER) for comment on Triple Point’s offer.

The regulator declined an interview, stating that the C‑NLOER’s role is to assess proposed offshore projects against legislative and regulatory requirements related to safety, environmental protection, resource management and industrial benefits.

“We cannot comment on hypothetical or prospective concepts that are outside a formal application or beyond our mandate,” stated an emailed reply from C-NLOER. “A potential strategic oil reserve would involve broader policy decisions that fall under federal and provincial governments.”

What is the project currently under assessment?

Using the proposed salt caverns for oil storage is not the green energy project Triple Point Resources has registered for environmental assessment.

Lemieux recognized the oil reserve idea may come as a surprise to the local community, which was informed of the compressed air storage plan, but she said Triple Point Resources felt a responsibility to let the powers that be know this asset would be available for a strategic oil reserve.

“It’s extremely sensitive locally because we were in the region just two months ago saying this would just be compressed air energy storage and now they will hear that we’re coming with this project,” said Lemieux.

“We’re not coming with this project. We are tasking the federal government to decide if they want to have this project.”

Should the strategic reserve idea come to fruition, she said, a whole new environmental assessment process, including feasibility studies and public consultations, would be required.

The salt caverns, she confirmed, would be able to accommodate both projects, if government wanted the reserve to materialize.