Low natural gas prices, geography, and logistics are preventing the province from developing that part of the oil and gas industry.

That’s according to oil industry consultant, Rob Strong who has over 40 years of experience in the local offshore.

Natural gas prices have been trading under $2.50 since December due to weak demand and oversupply.

Strong says 4.2-trillion cubic feet of natural gas was discovered off the coast of Labrador back in the early 80s, and since then there have been only “one or two” pure gas discoveries in the offshore region.

He says most of the gas discovered in this region is what’s called “associated gas.”

The function of a production platform is to separate the gas from the oil, and ship the oil to market, says Strong. Right now, a lot of that associated gas is being reinjected into the ground because prices are so low it doesn’t justify gas production.

Developing gas off the coast of Labrador would require a pipeline network that would be hindered by extreme environmental conditions.