This post is Sponsored Content from Gold Partner CAPP

--
 
You’re likely already familiar with the Bay du Nord offshore project. But with the recent announcement of a further delay in the federal decision to approve the environmental assessment, it’s time for our voices to actively show our support.
 
Equinor has been active in Canada for more than 25 years and is a partner in the Hibernia and Hebron offshore developments. Together with partner Cenovus, Equinor discovered the Bay du Nord deposit in 2013. Here are some fast facts about the project:

• Location: about 500 kilometres offshore east-northeast of St. John’s, NL
• Water depth: about 1,200 metres
• Platform type: Floating production, storage and offloading (FPSO) vessel
• Reserves*: 300 million barrels
• Production*: 200,000 barrels per day at peak production
• Jobs*: 11,000 person-years of employment over 25 years
• Expected economic impact*: $3.5 billion in government revenues

*Note: Reserves and economic impact numbers do not include the 2020 Cappahayden and Cambriol discoveries. 
 
Excellent economic and environmental advantages
 
The project has some significant environmental and economic advantages:

• Emissions - Bay du Nord has the potential to be the lowest carbon intensity development of its scale in Canada, utilizing world-leading carbon reduction technologies – some of the first in Canada’s offshore industry. Bay du Nord will also incorporate leading technology for digitalization, and facilitate innovation across the energy industry and other sectors – a huge win for pan-Canadian expertise and innovation.
• Technology - Equinor has 50 years of operating experience in Europe’s North Sea and will apply this experience to Bay du Nord. For example, Equinor will customize technology from oil platforms in Norway and offshore wind farms in the UK to monitor bird activity at Bay du Nord, transmitted in real time to shore – the first full operation of its kind in the world. There is also $300 million in research and development funding associated with the project, to further enhance the ability of the energy industry to lower carbon emissions.
• Economics - Bay du Nord would generate a significant positive impact for the economies of Newfoundland and Labrador and Canada. Bay du Nord alone (not including nearby Cappahayden and Cambriol discoveries) would generate well-paying jobs for skilled tradespersons, marine personnel, engineers and other professionals. In addition to government revenues from royalties and corporate taxes, Bay du Nord will provide significant supply chain opportunities for procuring goods and services for the project.

  
It’s time to speak up
 
The Government of Canada is currently reviewing the environmental assessment for the Bay du Nord project. Minister of Environment and Climate Change Canada Steven Guilbeault was to have presented his decision in December 2021 but delayed the decision by 90 days and recently announced a further delay of 40 days.
 
The Impact Assessment Agency of Canada – the body accountable to the federal government for expert review and analysis of a project proposal – concluded, “The project is unlikely to cause adverse environmental impacts with the appropriate mitigations in place.”
 
We are concerned to see another delay in the decision to approve the environmental assessment of the Bay du Nord project, particularly after a four-year, evidence-based environmental review process which found the project to be environmentally sound. Canada must find a path forward to build major projects that are environmentally responsible, create desperately needed jobs and develop critically important energy infrastructure while working to reduce emissions.
 
Canada is one of the few trusted, safe and reliable producers of oil and natural gas in the world. The Bay du Nord project offers an incredible economic opportunity for Newfoundland and Labrador and Canada, and a solution to meeting rising global energy demand with a responsible, secure source of energy. CAPP is calling on the federal government to approve the environmental assessment of the Bay du Nord project as soon as possible.
 
We urge the business community of Newfoundland and Labrador to contact your Member of the House of Assembly and Member of Parliament in support of this project.
 
Newfoundland and Labrador’s offshore industry, the province and the rest of Canada will benefit tremendously from development of Bay du Nord.
 
Paul Barnes, Director, Atlantic Canada and Arctic
Canadian Association of Petroleum Producers