The Grassy Point LNG Transshipment and Storage Terminal is offering Newfoundland and Labrador an opportunity enter the global LNG industry. In the future, consumer demand for natural gas is expected to significantly outpace domestic supply.
The terminal will create several hundred new jobs in the Placentia Bay area, generate new tax revenue for provincial and local governments and enhance the economic competitiveness of the region.
Specifically, construction and operation of the terminal will result in the following significant benefits for Placentia Bay and the province:
- Job creation: Over the three phases of construction, employment will fluctuate between 300 and 400 positions. There will be approximately 125 permanent jobs during operations.
- Procurement opportunities: Local businesses will have the opportunity to provide services in a range of areas related to the construction and operation of the terminal.
- Stimulation of the energy sector: This world-class LNG facility will stimulate the provincial energy industry over the long term and bring value by adding infrastructure to support natural gas development — an important step in establishing Newfoundland and Labrador as an energy warehouse. It will also result in the development of associated services and supplies in the region.
- Placentia Bay economic development: The project will create educational and training opportunities. It will also provide the Placentia Bay area with sustainable development and partnership opportunities.
- Tax revenues: The construction phase will generate annual revenues in provincial and local property taxes.
- Indirect benefits: Millions of dollars in additional economic activity in the Placentia Bay area will result from increased revenues earned by local restaurants, shops and businesses through the spending of wages and other construction activity.
Newfoundland LNG Market Assessment
Newfoundland, Particularly Placentia Bay, Offers Significant Advantage Over Other Atlantic Basin Sites
- Access to significant undeveloped natural gas reserves for eventual export opportunity & local power generation;
- Relative proximity to premium European and North American LNG markets;
- Ice free, deep water, minimal tide port with little traffic;
- Expansion possibilities;
- Ideal aggregation point;
- Proximity to local industry and power-grid; and,
- Proximity to international shipping routes.
The Newfoundland LNG Ltd. (NLNG) proposed transshipment and storage facility will return significant economic benefits to Newfoundland & Labrador in areas such as: employment, technological advancement, R&D, sales, improved efficiencies, socio-economic benefits, development of new commercial opportunities and much needed natural gas related infrastructure.
The facility and the subsequent new industry will create approximately 400-450 man years of employment during construction. The operating facility will employ approximately 100 full-time jobs.
Enhance employment and the economy of adjacent rural communities.
Direct & Indirect Services
NLNG will require the following services: engineering, transport, purchasing, construction and maintenance. Employment and other economic benefits will be long-term and substantial.
Having a reliable supply of natural gas adjacent to a heavy industrial cluster will start the creation of a natural gas marketplace for the Province.
The products and services will represent the creation of a new industry that includes a non-competitive exportable product. NLNG will be a competitive LNG transshipment and storage facility and will enhance Newfoundland and Labrador’s international recognition.
NLNG’s commitment to maximizing benefits for Newfoundland & Labrador is consistent with the philosophy of creating a positive economic environment.
What can NLNG provide?
- Equity interest or joint venture participation in the NLNG Project and/or follow-on operations;
- Assistance in promoting and advancing the Province’s energy plan;
- Assistance and advice in the structuring of a royalty regime and the government’s energy mandate;
- Prospective added value to the Provincial-share of royalty gas;
- Provide LNG supply (through tank subscription) for the Province;
- Provide cogeneration infrastructure and opportunity as alternate, clean energy source;
- Provide natural gas pipeline to Vale Inco, Come-by-Chance and proposed industries for increased energy supply during periods of peak usage;
- Assist in the production of the Province’s offshore natural gas supply;
- Provide liquefaction/re-gasification facilities;
- Participate in the advancement of commercialization of Newfoundland & Labrador’s natural gas from the Grand Banks, Laurentian Basin and Labrador Shelf;
- Provide availability for domestic supply of LNG; and,
- Assist in the engineering and construction of a natural gas pipeline.