After a period of inactivity, a proposed liquefied natural gas (LNG) project in the Canadian province of Newfoundland & Labrador has regained momentum, driven by a new partnership and supportive federal policy.

Project Background and Resources

The province possesses substantial discovered gas resources, estimated at about 14 trillion cubic feet, primarily located offshore in the Jeanne D'Arc basin and Labradorian waters. An earlier proposal for a US$10 billion floating LNG project in 2021 did not advance. The current revival is attributed to Canadian Prime Minister Mark Carney's policy of prioritizing energy projects that target markets beyond the United States.

The Fermeuse Energy Proposal

Fermeuse Energy has unveiled plans for a C$15 billion (US$10.9 billion) project. It aims to tap 9.7 trillion cubic feet of associated gas from the Jeanne d’Arc basin and transport it via a 380-kilometre pipeline to a proposed LNG facility in the town of Fermeuse, located approximately 90 kilometres south of the provincial capital, St. John’s. The project proponent targets a potential operational date of 2032.

Strategic Partnership with Hanwha Group

South Korea's Hanwha Group has signed a memorandum of understanding with Fermeuse Energy to jointly advance the LNG development. Hanwha is established as a long-term strategic partner, with the goal of contributing its integrated global capabilities. This includes support for development, engineering, financing, shipbuilding, and LNG logistics, as well as conducting conceptual studies and early engineering work. A Hanwha Ocean executive stated the partnership, with support from the Korean government, aims to contribute meaningfully to realizing the province's LNG potential.

Technical Expertise and Commercial Viability

Fermeuse Energy's chief executive, Swapan Kataria, welcomed the partnership, noting the MoU is a crucial step in ensuring the project progresses with technical excellence and commercial viability. Kataria is also the CEO of Crown LNG Holdings, a company specializing in liquefaction and regasification terminal technologies for harsh weather locations, particularly using concrete gravity-based structures. Crown LNG's first major project is an LNG import terminal in Kakinada, India.