The following statement was issued today by Ed Byrne, Minister of Natural Resources. It was also read in the House of Assembly:

I rise today to advise this House of a very significant event in the development of the petroleum industry offshore Newfoundland and Labrador. Yesterday, Husky Energy announced its plans to study the commercial viability of producing and exporting natural gas from the White Rose field.

Currently, our offshore petroleum industry is characterized by the development of conventional light crude, which I might add, will grow to close to half of Canada�s production when White Rose reaches peak production.

With the announcement that Husky Energy is looking for expressions of interest to assess natural gas development on the Grand Banks, this is a very important first step toward positioning the province as not only a significant player in the oil sector, but also a producer of natural gas.

To date, exploration has confirmed natural gas resources offshore totaling almost 10 trillion cubic feet. Our undiscovered potential is significantly greater, with more than 50 trillion cubic feet of natural gas awaiting discovery. It is an untapped energy potential strategically located adjacent to the large U.S. energy markets which are hungry for new energy supplies. Furthermore, strong gas prices, further exploration and emerging technologies all point to the fact that natural gas can be developed sooner rather than later.

One of the concepts that has been closely looked at for producing natural gas is a marine transport system using compressed natural gas (CNG) technology. I am pleased to advise this House today of a commitment of $100,000 to the Centre for Marine Compressed Gas at Memorial University. This support will assist Memorial in establishing a world-class centre for research and development in the advancement of technology in the marine transport, storage, handling and utilization of CNG. I am confident this facility will solidify the province�s position as one of the leading stakeholders in this emerging method of natural gas transportation. This centre will be integral to furthering the research, education and training opportunities in the area of natural gas development.

Earlier this year I announced this government will proceed with the development of a comprehensive Energy Plan for this province. Clearly, the development of natural gas will be an important element in our Energy Plan as we look for options to have natural gas as an energy source for the province and subsequently lead to the development of the necessary land-based infrastructure. It will also provide the opportunity to expand our service and supply sector which has proven it can meet the demands of the offshore oil industry.

I commend Husky Energy on taking this initial step towards the development of natural gas. Our experience tells us that Husky is a company that delivers on its commitments to the province and to the people of Newfoundland and Labrador. We look forward to continuing to work with Husky to advance the development of our offshore resources - both oil and natural gas.

2004 06 01                                        1:45 p.m.