Ottawa approves Bay to Nord oil project

The announcement was made by Federal Environment and Climate Change Minister Steven Gilbelt when the markets closed at 4pm today, EDT. The news, originally aired by the CTV network, was confirmed by Radio-Canada.

Pay to Nord is a deposit that the Norwegian oil company Equinor and local partner Senovas Energy want to exploit. It is located in deep water in the Flemish Pass Basin, about 500 km east of Saint-Jean.

Equinor’s floating production, storage and dying unit (Floating production storage and unloadingEnglish (or FPSO), a large vessel capable of producing up to 200,000 barrels per day.

The project is scheduled to come into operation in 2028. Bay to Nord will thus become the fifth marine oil field to be produced in Newfoundland and Labrador.

Bay to Nord represents $ 3.5 billion in royalties for the government of Newfoundland and Labrador – the country’s most indebted province – as well as thousands of well-paying jobs for its residents.

In Newfoundland and Labrador, all federal and provincial representatives – except one – are behind Bay to Nord. Moreover, Ottawa’s rejection would have been seen as a major setback for the Liberal government of Andrew Fury, the oil industry, which represents approximately 30% of the province’s GDP.

When asked by Radio-Canada before the markets closed, the Prime Minister did not want to confirm the news, but confirmed that he had succeeded in sending his message to Ottawa.

I am confident that our voice will be heard by the people who make the decisions, he said. The qualifications of the project are adequate.

Federal approval of Pay to Nord, according to the Prime Minister Incredible economic benefits to the province.

” This has given hope to the industry which has been weakening in recent times. ⁇

On the contrary, some voices – like By environmental activist David Suzuki – While Canada is trying to meet its growing ambitious obligations to reduce greenhouse gases, the federal government’s rejection of the plan has risen in recent months.

In the past, the so-called supporters of the government and the oil industry Low carbon The oil produced by Bay to Nord is an important part of the transition to renewable energy.

Climate researchers and environmentalists have ridiculed this argument, although – Like Steven Gilfield.

Although it is true that seawater extraction from Newfoundland and Labrador emits less than other types of products, it should be noted that the extraction is only about 15% of the total emissions per barrel.

When this oil is burned for energy, Alberta oil produces 6% less carbon than the bitumen dissolved in the sand.

Evidence for split within the Trudeau cabinet

Considered a true economic lifeline for Newfoundland and Labrador, whose economy depends on oil royalties and marine labor, it took many years to produce Bay to Nord.

The oil company has postponed the Equiner project to 2020 before announcing that it will continue in 2021, following a fall in oil prices in the early months of the Govt-19 epidemic.

The Environment Minister’s decision on the Bay to the Nord, originally scheduled for last December, has been postponed until March 6. Postponed againThe federal government has explained that more time is needed to assess whether the project is likely to materialize Significant adverse environmental effects.

On the show Everyone is talking about itSunday, at ICI Tl,, Minister Guilbeault promised that his government’s decision on the Bay du Nord file would be made public within two weeks..

The results are subtle and controversial. According to our information, The oil project caused a rift within Justin Trudeau’s cabinet. Cabinet members from Quebec, Ontario and British Columbia opposed the move.

The installation of the mining infrastructure will cover an area of ​​22 square kilometers.

Photo: Equinor

The announcement comes a day before Canada’s Deputy Prime Minister and Minister of Finance Christiaan Freeland presented her budget.

It comes a week after the presentation of the Trudeau governmentA climate plan including significant measures to reduce oil and gas emissions However, without imposing a production limit on the industry.

The Trudeau government has promised to reduce emissions by 40% to 45% by 2030 by 2005. In recent weeks, however, the United States has been looking for ways to increase its energy exports. Instead of Russia, instead of Europe, it was hated. Its occupation of Ukraine.

The oil and gas sector is the most polluting sector in Canada. This represents a 26% emission.

To be continued Release of the Sixth Report of the Intergovernmental Panel on Climate Change (IPCC)Canada was there too Urged to reject all new fossil fuel projects Interview with United Nations Secretary-General Antonio Guterres

More details will follow.