Newfoundland LNG Ltd. (“Newfoundland LNG”) is a Newfoundland corporation focused on permitting and developing a multi-purpose LNG terminal at Grassy Point, Placentia Bay, Newfoundland.
Newfoundland LNG’s strategy is to create Atlantic Basin LNG supply-chain solutions through the development of strategic transshipment and storage facilities. In addition to these services, and in-line with the Government of Newfoundland and Labrador’s desire to establish the province as an “Energy Warehouse”, the construction of an LNG terminal contributes to the critical mass of energy infrastructure required to commercialize offshore gas reserves and provides compelling opportunities to facilitate cost effective local power generation.
LNG is of critical importance to the global energy equation and the proposed Grassy Point facility is well positioned as an aggregation point along existing and future LNG trade routes. Grassy Point will be a cost effective transshipment and storage service provider.
Provincial Gas Reserves
At present, the project is well positioned to benefit from initiatives being undertaken by the Newfoundland and Labrador provincial government & offshore oil and gas operators. Once constructed, the facility will create significant commercial opportunities for both Newfoundland LNG and the Province.
The C-NLOPB estimates that approximately 9.6 trillion cubic feet (tcf) of natural gas and 436 million barrels of natural gas liquids have been discovered offshore Newfoundland & Labrador. Of this total, about 4.2 tcf of natural gas and 123 million barrels of natural gas liquids are contained in five separate fields offshore Labrador. The rest is located in nine fields on the Grand Banks. Of this, about 74% of Grand Banks natural gas is contained in the Hibernia (~1.3 tcf) and White Rose (~2.7 tcf) fields.
Estimates of the undiscovered natural gas resources contained wholly or in part within the Newfoundland and Labrador offshore area are greater than 60 trillion cubic feet.
Any commercial offshore natural gas development will require new investment. Perhaps the biggest challenge for such development is getting the gas to market economically. At present, Newfoundland LNG is the first to engage in a strategy that can successfully create the necessary energy infrastructure to aggregate and export natural gas.
The provincial initiatives are clear and Newfoundland LNG, with its complementary energy infrastructure, provides the most compelling solutions for the development and commercialization of Newfoundland and Labrador’s offshore natural gas reserves.
When Complete, the Grassy Point LNG Transshipment & Storage Terminal will provide facilities for the following:
- Gas to wire capability using combined cycle gas turbines (CCGT);
- LNG Cargo Transfer;
- Short & Long-Term storage of LNG;
- Temporary vessel-based LNG storage; and,
- A lay-up site for in-transit LNG carriers.