(St. John’s, NL – April 6, 2022) Today, the Government of Canada approved the environmental assessment of the Bay du Nord development project as recommended by the Impact Assessment Agency of Canada in August 2021. Energy NL is pleased to see a rigorous and scientific process was followed and looks forward to the opportunities this project offers for its members and the country.
“Approval of the environmental assessment for Bay du Nord is a significant milestone welcomed by Energy NL members, the energy sector, and our province in general. Bay du Nord is a generational energy development which will provide significant economic benefits while being the lowest carbon intensity oil project in Canada. We look forward to continued cooperation between all stakeholders as we move toward project sanction.”
• Energy NL Chair, James Parmiter
The Bay du Nord project will include industry leading innovations in not just production, but also environmental mitigations and employee safety. The Bay du Nord project stands to set the international standard for future offshore development projects which places Newfoundland and Labrador and Canada as global leaders during the energy evolution. It would be the lowest carbon intensity oil project in Canada, with an emission intensity of fewer than 8 kilograms per barrel – half of the international average of 16.1 kilograms per barrel. As Canada and other leading jurisdictions move toward net zero emissions and renewable energy sources, there will remain a global demand for oil. The Bay du Nord project can help meet that demand while applying leading international standards of ESG and safety and achieving below global averages for emissions. In August 2021, the Impact Assessment Agency of Canada concluded that the Bay du Nord development project with appropriate mitigations “…is not likely to cause significant adverse environmental effects….”
“The Bay du Nord project is a critical part of our pathway to achieving a net zero energy sector, while providing significant jobs and economic benefits. Energy produced in Canada – especially the low carbon oil found offshore Newfoundland and Labrador – with our leading ESG and safety standards should be used to meet global demand and lead the energy mix. We have seen broad support for this project from Energy NL members and supporters including, First Nations, not-for-profits, municipalities, and businesses, all of whom look forward to the significant benefits and opportunities this project will provide.”
• Energy NL CEO Charlene Johnson
According to an economic impact study commissioned by Energy NL, the Bay du Nord project is expected to provide over $97 billion in GDP contribution across the country over the life of the project and 13,800 jobs annually, including $82 billion in GDP contribution and over 8,900 jobs in Newfoundland and Labrador. Over the life of the project, Ontario will see $7.2 billion worth of GDP and annually over 2,200 jobs, while Quebec would experience a $2.6 billion GDP increase supporting over 900 annual jobs. Alberta will see a $3.1 billion GDP increase and almost 700 annual jobs and the GDP in the rest of Atlantic Canada will grow $1.8 billion with over 700 annual jobs.
Across Canada $31 billion in employment income induced by the Bay du Nord project will create an estimated $22.6 billion in annual household spending on products and services such as groceries, vehicle purchases, utilities, recreation, and entertainment. Governments across the country will generate an estimated $24.5 billion, with $2.8 billion of this tax revenue going to provincial and local governments outside Newfoundland and Labrador. The Government of Canada can expect to receive $10.7 billion in tax revenue.
“I would like to thank Premier Andrew Furey for his commitment to the Bay du Nord project and our energy industry. His leadership has been instrumental in getting to where we are today, and I commend his unwavering support. Minister Seamus O’Regan has shown extraordinary dedication to the project and our industry and he has worked diligently to highlight the value and importance of Bay du Nord in Ottawa; I sincerely thank him, Minister Gudie Hutchings, and their caucus colleagues for those efforts. As well, I would also like to thank Minister Andrew Parsons who has been steadfast in his support for Bay du Nord and our industry. The next steps for this project are sanctioning by the proponent Equinor, and Energy NL members look forward to that occurring as soon as possible. Equinor is a global leader in responsible resource development and Energy NL members are greatly anticipating working with them to enhance that reputation through the Bay du Nord project.”
• Energy NL CEO, Charlene Johnson
The Bay du Nord project consists of several oil discoveries in the Flemish pass basin, some 500 km northeast of St. John’s, Newfoundland and Labrador. The first discovery was made by Equinor in 2013, followed by additional discoveries in 2015, 2016 and 2020. The Bay du Nord discovery is at a water depth of approximately 1,170 metres while the new discoveries are at approximately 650 metres water depth. Cenovus Energy is Equinor’s partner in the Bay du Nord discoveries. BP is Equinor’s partner in the Cappahayden and Cambriol Central discoveries.
Energy NL represents approximately 460 member organizations worldwide which are involved in the Newfoundland and Labrador energy sector. Members are active in all areas of the supply and service sector and include a diverse representation of businesses that range from offshore supply vessels and helicopters, carbon reduction and sustainable technologies, health and safety equipment and training, engineering solutions and fabricators to law firms and human resource agencies.