Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeOil & GasNewfoundland eyes $400 billion in natural gas off its coastEnergy minister say province could become major player as geography gives it advantage in shipping to overseas marketsLast updated 1 hour ago You can save this article by registering for free here. Or sign-in if you have an account.The Jeanne d’Arc Basin, 350 kilometres east of St. John’s, is estimated to contain 27.6 trillion cubic feet of recoverable natural gas. Photo by JENNA HEAD/PostmediaThere’s an estimated $400 billion worth of natural gas in an ocean basin off Newfoundland, and one analyst believes that assessment could position the province as a major player in the natural gas sector.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorOn Monday, June 1, the Newfoundland and Labrador government released the second phase of a resource assessment for the Jeanne d’Arc Basin, a shallow-water area 350 kilometres east of St. John’s.The first study of the basin assessed resources available within existing discovery and production licences. It estimated the areas contained somewhere between 8.1 to 11.3 trillion cubic feet of recoverable natural gas.Get the latest headlines, breaking news and columns.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 Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe second phase identified an additional 10.2 to 25.5 trillion cubic feet in adjacent and unlicensed areas.Combining the results and the range of estimates, the studies have determined that the best estimate is likely 27.6 trillion cubic feet of recoverable natural gas.Provincial officials noted the potential $400 billion value of the resource during a media availability.The challenge, veteran analyst and consultant Rob Strong said, is determining the best way to develop the basin, also home to Newfoundland and Labrador’s producing oil fields.“Now that the industry understands the resource, companies can start looking at the various technologies used to develop it,” he said.“Some might want to bring it ashore and use it for power generation. Some might want to bring it ashore, convert it to liquefied natural gas, and ship it to market.” Rob Strong is a consultant and analyst with more than 40 years of experience in the oil and gas sector. Photo by Glen Whiffen /Staff photoThere has been lots of talk of liquefied natural gas in Western Canada recently, including the start of operations at a large-scale export terminal in Kitimat, B.C., in June 2025.Strong would like to see the natural gas conversation focus more on Eastern Canada’s potential.“The opportunity is there to get it out into the industry, get it out to the operators in particular, and hopefully, it might attract some new interest in drilling,” he said.Newfoundland and Labrador’s Energy and Mines Minister Lloyd Parrott also said the two assessments are a signal to the industry of the resource available and a solid rationale for commercial development.He also noted that there is renewed federal support for projects that could help transition towards greener energy sources, and that natural gas is a cleaner option than oil used domestically or coal elsewhere in the world.“The federal government has made it very clear that they’re looking to help the world transition,” Parrott told reporters. “They support what we are doing here, and I think that there’s never been a better time for us to move things forward.“The last 10 years, we’ve sat pretty stagnant and, if we look globally, given the geopolitical situation out there, we understand that what we have … can supply the world to help us transition.” Energy and Mines Minister Lloyd Parrott. Photo by Cameron Kilfoy/The TelegramParrott said, in addition to a potential energy source that could help fuel the mining sector and other domestic uses, Newfoundland and Labrador’s geography gives it an advantage for exporting to more easily reached markets than Western Canada.“We’ve received interest globally, from the feds and everyone else, and I think that there’s an opportunity for Newfoundland to position itself,” the minister said.The province is also launching consultations with industry and stakeholders on a new offshore natural gas royalty framework.This framework, the government said in a press release, “is intended to provide clarity, consistency, and transparency for potential investors.”Parrott said that government hopes it can bring legislation forward this fall to formalize the offshore natural gas royalty framework.Charlene Johnson, chief executive officer of Energy NL, said Newfoundland and Labrador represents one of the most promising emerging natural gas opportunities in North America and welcomed the province prioritizing the sector.“Advancing the identification of resources in the Jeanne d’Arc Basin, along with consultation on the development of an offshore natural gas royalty framework, marks an important step toward unlocking this potential,” Johnson said in a statement. Energy NL CEO Charlene Johnson. Photo by The Telegram/File photoThe Oil and Gas Corporation of Newfoundland and Labrador also agrees that the findings highlight opportunities to meet global energy security priorities“While earlier work focused on the potential development of natural gas within existing fields, this study expands the scope to include both known reservoirs and high-probability prospects in unlicensed areas near existing infrastructure,” said Jim Keating, the corporation’s chief executive officer, in the provincial release.“Some of these prospects could support standalone development in a successful exploration scenario.”Lisa Baiton, president and chief executive officer of the Canadian Association of Petroleum Producers, said important work has now been done to strengthen the understanding of the province’s resource potential.“Enhanced geoscience knowledge is a constructive step toward advancing natural gas opportunities, reinforcing investor confidence, and informing policy,” she said in a prepared statement.Newfoundland and Labrador’s oil and natural gas sector and its direct access to international markets, she said, is becoming an important player in the world’s energy industry.“With the right conditions, the province has the potential to play a larger role in Canada’s energy sector and export capacity supporting allies with reliable supply,” said Baiton. 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