La Presse is reporting that a new agreement on Churchill Falls has been reached between this province and Quebec.

The Quebec media outlet broke the news early Wednesday evening.

It says production capacity of the new hydroelectric facilities in Labrador will be greater, which means both provinces can obtain more energy than what was initially agreed upon in an MOU reached in December 2024.

That increase made the agreement possible according to La Presse, otherwise it remains largely the same.

The publication cites a source indicating that the new agreement will also breathe new life into the so-called Atlantic Loop project, which would essentially connect the Atlantic provinces to the Quebec grid.

La Presse says the federal government played a “facilitating role” in the deal, and offered financial incentives to Newfoundland and Labrador, including the possibility of extending the Clean Electricity Investment Tax Credit, which has a 15 per cent refundable tax credit to be used to finance major energy projects.

A formal announcement on the deal is expected to take place next week.

Statement from Premier Tony Wakeham

“We can confirm that in recent days we have made significant progress in our negotiations with both Quebec and the Government of Canada as it relates to replacing the 2024 MOU with a new deal for Churchill Falls and Gull Island.

As of right now, no final deal has been signed. We will inform you should this situation change.”

Statement from Official Opposition

“Once again, Newfoundlanders and Labradorians are learning about the latest MOU developments through Quebec media rather than from our own government.

This time, they’re reporting that a new deal has been reached, but that the core of the agreement remains similar to the previous MOU.

Premier Wakeham needs to be transparent with Newfoundlanders and Labradorians.”