Petrolia has announced that the government of Quebec has expressed willingness to complete the assessment of the oil and gas potential of Gaspesie.
This willingness, which was outlined in the Leitao Budget, combined with the new accelerated capital cost allowance for LNG incentives, will enable Petrolia to implement an LNG supply chain from the producer to the Cote-Nord customer.
In 2012, the government of Quebec invested CAN$10 million in the purchase of Petrolia shares, helping the company complete the Bourque 1 and 2 wells. This in turn enabled Petrolia to make a wet natural gas discovery in the Bourque permits located near Murdochville in Gaspesie. Sproule evaluated the potential at more than 1 trillion ft3 of volume initially in place of wet natural gas within the Bourque project.
Petrolia also announced an agreement in November 2014 with Tugliq Energie to create an LNG supply chain to bring the potential gas production from Gaspesie to Cote-Nord customers. Within the agreement, Petrolia committed to sell its future gas production at a fixed price that will also be stable over time to mining and industrial customers from the Cote-Nord and Grand-Nord.
Commenting on the news, Alexandre Gagnon, President and CEO of Petrolia, said "I am pleased that the government has acknowledged the hydrocarbon potential of Gaspesie. We believe that the elements announced in the budget will enable the link of Gaspesie with the Cote-Nord, thus building better prosperity for these two areas and all of Quebec while reducing GHG emissions.”
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/27032015/petrolia-lng-supply-chain-gets-government-nod-501/