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NLIS 1
January 25, 2001
(Mines and Energy)

 

Minister welcomes results of natural gas studies

Mines and Energy Minister Paul Dicks today welcomed the results of four natural gas studies that were commissioned by government and industry representatives. The study results are being updated today at the annual general meeting of the Newfoundland Ocean Industries Association (NOIA).

The four studies constitute a systematic review of the natural gas chain from wellhead to market, including a market assessment, pipeline and non-pipeline feasibility studies, and an economic benefits study.

Mr. Dicks said these studies will be instrumental in the development of a provincial natural gas strategy.

"The key to a successful natural gas development strategy depends on the input from all stakeholders involved in the industry," said Mr. Dicks. "By balancing the needs and expectations of all interested parties, government will have a clearer picture of the technical, market and resource challenges facing our natural gas industry."

The minister said the studies will identify a number of development options which will provide a strong technical basis for planning and developing a natural gas strategy.

"At the end of the process, government wants to put in place a natural gas strategy that includes establishment of a royalty regime specific to natural gas that will encourage exploration and early development," said Mr. Dicks.

The minister said the industry representatives are to be commended for their excellent work relating to natural gas development.

"On behalf of my colleagues in government, I wish to congratulate all of the stakeholders and participants in these studies," said Mr. Dicks. "I have no hesitation in saying that the knowledge gained will form the foundation and necessary inputs into a comprehensive gas development strategy."

Mr. Dicks said the natural gas resources offshore Newfoundland and Labrador hold tremendous potential for both the province and industry. He said government will continue to work with industry to develop the province�s natural gas resources earlier rather than later and in a manner that optimizes the benefits to the province while providing a fair and equitable return to investors.

Media contact: Gary Callahan, Communications, (709) 729-4890

2001 01 25                                           12:10 p.m.


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