The provincial government has identified significant opportunities in natural gas in the Jeanne d’Arc basin, valued at more than $400-billion.
The first phase of the study was released last year, and the second phase expanded the scope to explore how much more untapped potential remains.
It found best estimates of 27.6 trillion cubic feet (TCF) of natural in the basin, whichwas worth more than $400-billion as of Friday on the European market.
According to the provincial government:
- The additional natural gas resource base across the 21 study areas in Phase II is estimated to range from 10.2 to 25.5 trillion cubic feet (Tcf), with a best estimate of 16 Tcf.
- Combined results from Phases I and II estimate total recoverable gas between 19.8 and 35.4 Tcf, with a best estimate of 27.6 Tcf.
By comparison, Canada’s first offshore natural gas project (Sable - Offshore Energy Project in Nova Scotia), was sanctioned on approximately three Tcf of recoverable gas and produced two Tcf over nearly 20 years.
- All 39 areas included in the combined Phase I and II assessments of natural gas in the Basin are in shallow water (less than 130 m deep).
- Prospects are located within 50 km radius of each other and of existing infrastructure.
- Areas are supported by high-resolution 3D seismic data.
- Many locations already have flow-tested discovery wells, helping confirm resource estimates.
- A significant portion of these resources is not currently licensed, leaving opportunities open for future development.
The study found that potential was primarily at Ballicaters, and the northern and northeastern Jeanne d’Arc basin.
Government sees natural gas as an opportunity once oil reserves are exhausted.
The ongoing study now turns to phase three, where the government will assess the feasibility, economic opportunity and ways to produce and ship natural gas to market.
The province has also started consultations on a royalty regime, something it hopes to release more information on in the coming months.
