Equinor maintains that Bay du Nord is an important project for the company and the province as a whole.

Tore Løseth of Equinor Canada says oil and gas energy is needed and will continue to be needed for a long time to come. He was speaking to this morning’s Atlantic Economic Council provincial outlook presentation at MUN’s Signal Hill campus.

Løseth was the man who delivered the devastating economic news in 2023 that the Bay du Nord project was being postponed for up to three years – citing volatile market conditions.

First oil was originally set for 2028, but inflation caused the company to pause its plans for the costly Flemish Pass development 500 km offshore. Because of rising costs, the project was no longer economically viable, but they’ve used the last year and a half to “change” and “improve” the project.

This morning, Løseth indicated that projects like Bay du Nord are necessary to fund the energy transition from carbon-based fuels to renewables.

“Our renewables projects now are not hugely profitable,” and he provided hydrogen as an example. “It’ll take quite a long time and quite a lot of investments before we have that business model up and running. So simply to fund the energy transition we need oil and gas and we need it for a long time still.”

He offered assurances that, if they can make Bay du Nord work, it will be the province’s next “super project.”

“We’re talking many billions of dollars to just get it started. Taxes, royalties, a lot of income, and a lot of jobs both indirect and direct.”