Newfoundland's offshore natural gas assessment results a 'significant milestone,' says minister
A new assessment of natural gas off Newfoundland's coast shows economic promise, says Energy Minister Steve Crocker.
On Monday, the provincial government released its natural gas resources assessments, which suggests natural gas resources in the Jeanne d'Arc Basin range from 8.1 to 11.3 trillion cubic feet (tcf), with a best estimate of 9.7 tcf.
Crocker calls the report a "significant milestone," and one that highlights "a promising new chapter in our energy future."
"This assessment is more than just a technical document," Crocker told reporters.
"It is a strategic tool that helps us understand how our offshore natural gas resource can drive economic growth and support the global transition to net zero emissions."
Crocker said the data gathered will help investors make informed decisions.
The province earmarked $4.7 million in the 2023 budget for the assessment.
Crocker said the province focused on the Jeanne d'Arc Basic because it has existing infrastructure, shallow waters and a service community.
The province will also inject $1 million for the next phase of the project, which includes further evaluations in the area.
Crocker couldn't provide a timeline for when natural gas could be extracted, saying that would be up to the companies.
"We'll put the information out there and hope to see that investment. Obviously that's something that'll come later as companies now have an opportunity to see this proven resource," he Crocker.
He said the provincial government has to draft a royalty regime and will be consulting with companies to get feedback.
"This will be done and invested and developed with the best interest of Newfoundlanders and Labradorians," Crocker said.
'High demand'
Charlene Johnson, CEO of Energy N.L., says the assessment is a positive step for the sector.
"We already offer the world a lower carbon form of energy, our offshore oil, and now we prepare to move forward with the possibility of providing another energy source — natural gas — that is in high demand internationally," she said.
Energy N.L members have wanted to see the natural gas sector developed for years, Johnson said.
"A lot of the focus has been on oil here, and that is still a key focus. But as the world needs natural gas, it's great that we've now turned our attention to that," she said.
Safety first
Roger Grimes, chair of the newly renamed Canada-Newfoundland and Labrador Offshore Energy Regulator, says he's looking forward to increased activity in the energy sector.
He said as the industry regulator, natural gas will face similar scrutiny as other projects.
"As the regulator, we focus primarily on safety first. Everything that's ever approved offshore, the number one priority is is it safe," Grimes said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Vancouver Sun
21 minutes ago
- Vancouver Sun
After former Leafs and Blue Jays players, CRA now goes after ex-Raptors star Norman Powell
OTTAWA — On Feb. 4, 2022, former Toronto Raptors star guard Norman Powell received two pieces of news that would have a major impact on his life. The first was from his agent telling him that he was part of a blockbuster trade that sent him from the Portland Trail Blazers to the Los Angeles Clippers. The second was from the Canada Revenue Agency (CRA) claiming over $1.2 million in additional income tax on 'inducements' paid by the Raptors in 2019 and 2020 to attract the star two-way guard to the surging Toronto team. Powell, who was part of the Raptors' 2019 championship team, is now appealing the CRA's decision in the Tax Court of Canada. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. Powell's faceoff with the tax agency is over the same issue as ex-Toronto Maple Leafs Patrick Marleau and John Tavares , namely that his nearly $7 million in signing inducements should be taxed at only 15 per cent and not at the top income tax bracket (over 50 per cent). A key question for the court to determine is if the inducement offered by the Raptors Powell's contract to entice him to Toronto fits the definition of an 'inducement' under the U.S.-Canada treaty that sets the tax rate at 15 per cent. Powell says yes, but the CRA says no. The case, like Marleau and Tavares', could have a significant impact on how Canadian professional sports teams use signing bonuses or salary inducements as a tax incentive to attract foreign athletes to Canada instead of lower-taxed American organizations. Powell's lawsuit argues that the millions in inducements he signed with the Raptors to attract him to Toronto are covered by provisions of a Canada-U.S. tax treaty which set the tax rate for an 'inducement to sign an agreement' at 15 per cent. 'The Toronto Raptors and the Appellant (Powell) both understood that the Inducement was a key component of the Appellant's decision to sign' with the Canadian team, reads the appeal. But, per Powell, the CRA disagreed. On Feb. 4, 2022, the agency issued notices of assessment to him for 2019 and 2020 that taxed his inducement payments at the ordinary federal and provincial income tax rates (likely over 50 per cent) instead of 15 per cent. 'The Toronto Raptors agreed to pay the Inducement to entice the Appellant 'to sign an agreement relating to the performance of' his services as an 'athlete',' Powell wrote, saying that CRA's arguing otherwise is 'to distort the legal and economic reality' of his contract with the Raptors. Powell objected to the CRA, which he says accepted his objections 'in full' on March 1, 2024. But then to Powell's surprise, six days later the CRA issued a reassessment that once again considered his inducements to be taxable at the full federal and provincial tax rates instead of 15 per cent. Even more confusing is that one year later, the CRA 'admitted and agreed' that the $7 million paid by the Raptors to Powell in 2019 and 2020 were in fact 'an inducement… to choose the Toronto Raptors' under the terms of his NBA contract, his lawsuit states. 'The CRA has admitted that the Inducement was paid to the Appellant as an inducement for him to choose the Toronto Raptors. This should conclude the analysis,' reads his appeal. In his lawsuit, Powell says the CRA made essentially the exact same arguments as they did in Tavares' and Marleau's cases without considering the differences between an NBA and NHL contract. His appeal suggests that CRA copied its findings in the Tavares and Marleau cases and applied them to Powell, who plays a different sport in a different league with different player contracts. 'The position adopted by the (CRA) has been shaped following an audit conducted on an NHL player who received an inducement as per the terms outlined in his employment agreement. Subsequently, the (CRA) improperly extended the conclusions drawn from this particular NHL case to the Appellant' without considering the specificities of his NBA contract, Powell argued. Both the CRA and Powell's counsel, Marie-France Dompierre, declined to comment as the case is ongoing. The tax agency has not filed a statement of defence in court. National Post has published a series of reports since 2024 detailing tax battles between former star players of Toronto's three largest professional sports teams and the CRA. Other than its fights with Powell, Tavares and Marleau, the CRA also battled ex-Maple Leaf Jake Muzzin over the tax rate imposed on his signing bonus in 2020. The CRA also launched battles in 2023 with ex-Toronto Blue Jays all-stars José Bautista, Josh Donaldson and Russell Martin over multimillion tax bills. Late last year, the Tax Court ruled in favour of Donaldson and Martin, arguing that the CRA's calculation of their income tax owing was 'faulty.' cnardi@ National Post Get more deep-dive National Post political coverage and analysis in your inbox with the Political Hack newsletter, where Ottawa bureau chief Stuart Thomson and political analyst Tasha Kheiriddin get at what's really going on behind the scenes on Parliament Hill every Wednesday and Friday, exclusively for subscribers. Sign up here . Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our daily newsletter, Posted, here .
Calgary Herald
23 minutes ago
- Calgary Herald
After former Leafs and Blue Jays players, CRA now goes after ex-Raptors star Norman Powell
OTTAWA — On Feb. 4, 2022, former Toronto Raptors star guard Norman Powell received two pieces of news that would have a major impact on his life. Article content The first was from his agent telling him that he was part of a blockbuster trade that sent him from the Portland Trail Blazers to the Los Angeles Clippers. Article content Article content The second was from the Canada Revenue Agency (CRA) claiming over $1.2 million in additional income tax on 'inducements' paid by the Raptors in 2019 and 2020 to attract the star two-way guard to the surging Toronto team. Article content Article content Powell, who was part of the Raptors' 2019 championship team, is now appealing the CRA's decision in the Tax Court of Canada. Article content Article content Powell's faceoff with the tax agency is over the same issue as ex-Toronto Maple Leafs Patrick Marleau and John Tavares, namely that his nearly $7 million in signing inducements should be taxed at only 15 per cent and not at the top income tax bracket (over 50 per cent). Article content A key question for the court to determine is if the inducement offered by the Raptors Powell's contract to entice him to Toronto fits the definition of an 'inducement' under the U.S.-Canada treaty that sets the tax rate at 15 per cent. Article content The case, like Marleau and Tavares', could have a significant impact on how Canadian professional sports teams use signing bonuses or salary inducements as a tax incentive to attract foreign athletes to Canada instead of lower-taxed American organizations. Article content Article content Powell's lawsuit argues that the millions in inducements he signed with the Raptors to attract him to Toronto are covered by provisions of a Canada-U.S. tax treaty which set the tax rate for an 'inducement to sign an agreement' at 15 per cent. Article content Article content 'The Toronto Raptors and the Appellant (Powell) both understood that the Inducement was a key component of the Appellant's decision to sign' with the Canadian team, reads the appeal. Article content But, per Powell, the CRA disagreed. On Feb. 4, 2022, the agency issued notices of assessment to him for 2019 and 2020 that taxed his inducement payments at the ordinary federal and provincial income tax rates (likely over 50 per cent) instead of 15 per cent. Article content 'The Toronto Raptors agreed to pay the Inducement to entice the Appellant 'to sign an agreement relating to the performance of' his services as an 'athlete',' Powell wrote, saying that CRA's arguing otherwise is 'to distort the legal and economic reality' of his contract with the Raptors.
National Post
25 minutes ago
- National Post
In Quebec, opposition mounts against a pipeline project that doesn't exist
Article content OTTAWA — At Quebec's National Assembly and on Parliament Hill in Ottawa, pipelines have dominated the debates. The only issue? No projects involving the province are on the agenda. Article content 'I think there is a fixation on pipelines on (Prime Minister Mark) Carney's part at the moment, not on the part of Quebecers,' said Bloc Québécois MP and former Greenpeace activist Patrick Bonin. Article content Article content Article content Since taking office in May, Bonin has mentioned the pipeline issue more than 20 times in his speeches on the floor of the House of Commons. Article content Article content 'We will not allow the government to build a pipeline through Quebec,' he said on Monday. Article content According to Bonin, the prime minister is 'rolling out the red carpet for the oil companies' by meeting with some 20 CEOs in Calgary the day before his meeting with the premiers in Saskatoon and by hoping to speed up environmental assessments. Article content Since the election, Carney has spoken cautiously about 'conventional energy' infrastructure and has repeatedly stated that no decisions have been made at this stage regarding the major projects he wants to see come to fruition. Article content But he did take a step further on Wednesday, feeding Bonin's worst fears. Article content 'The consensus that's required includes a consensus with the Indigenous people. We will stand with Indigenous Canadians, we will build pipelines and energy infrastructure in this great country,' Carney said on the floor of the House of Commons. Article content Article content In Quebec, many politicians remain on the edge of their seats. Article content Article content 'Any pipeline project, any kind, is bad for the environment, bad for the economy, bad for Quebec,' said Ruba Ghazal, the Quebec solidaire House leader at the National Assembly. Article content 'If the premier doesn't want to completely shut the door on a pipeline project, can he at least ensure that environmental sovereignty is defended?' she asked. Article content 'The leader of Québec solidaire is getting excited about something that doesn't exist,' replied Legault. 'There is currently no project that is taking place in Quebec.'
