Petrolia applauds Quebec’s LNG support

Quebec-based Pétrolia welcomed the willingness expressed by the Government of Quebec in the Leitao Budget to complete the assessment of the oil and gas potential of Gaspésie.

This willingness, coupled with the new accelerated capital cost allowance for liquefied natural gas incentives, will enable the implementation of a liquefied natural gas supply chain from the producer to the Côte-Nord customer, Pétrolia said in a statement.

In 2012, the Government of Quebec invested $10-million in the purchase of Pétrolia shares, a decision that helped the company complete the Bourque 1 and 2 wells. This in turn enabled the company to make a
wet natural gas discovery in the Bourque permits located near Murdochville in Gaspésie, it said in the statement.

The potential was evaluated by Sproule at more than 1 Tcf of volume initially-in-place of wet natural gas within the Bourque project. At the time, these operations generated more than $1.2-million in economic spinoffs within the Murdochville area.

Pétrolia also announced an agreement last November with Tugliq Énergie to create a liquefied natural gas supply chain to bring the potential gas production from Gaspésie to Côte-Nord customers,

Within the agreement, Pétrolia 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 Côte-Nord and Grand-Nord, the company added.

Image: Pétrolia