Province to Initiate Discussions on Offshore Natural Gas Development

The government of Newfoundland and Labrador is initiating consultations to establish a royalty framework for offshore natural gas production.

This move comes following the release of a resource assessment that indicates a significant potential of 8.1 to 11.3 trillion cubic feet of natural gas, with a best estimate of 9.7 trillion cubic feet. Energy Minister Steve Crocker emphasized the importance of conducting these consultations in the best interests of the people of the province while adhering to due diligence and transparency standards. The goal is to align with Canada's vision of becoming an energy superpower, as described by Prime Minister Mark Carney. The consultation process will involve discussions with relevant companies and stakeholders to ensure that the development of natural gas resources is approached in a way that maximizes benefits and minimizes risks for the local population and environment.