Research facilitation and management for Newfoundland and Labrador's offshore industry

Natural Gas and 'Greenfield' Areas

Project: Greenfield Gas Project
Subject Category: Other

End Date: Sept 2002
Institution / Organization: Gardner Pinfold Consulting Economists Limited

A "Greenfield" area is one that has experienced the development of gas distribution infrastructure over a large area where gas had not previously been available. Traditionally, the Atlantic Canada region has had little diversity in its energy supply mix, relying on four main sources of energy: crude oil, coal, hydro and wood. With the availability of natural gas, the historical pattern of energy supply and demand in Greenfield areas will change.

It is widely believed that in other communities the availability of natural gas is responsible for generating numerous benefits, such as: increased ability to attract new industry, the retention and greater competitiveness of existing industry and business, improved environmental conditions and lower household energy expenditures.

This study provides a structured and systematic approach to examining the benefits and costs of expanding gas availability into new areas in this region. It also enables the formulation of more informed government policies with respect to the expansion of gas infrastructure in Atlantic Canada. The project includes the evaluation of benefits accruing from the introduction of natural gas in five other North American jurisdictions as well as a model that provides a structured approach for assessing the potential impacts on Greenfield areas. The model was then applied to three locations in the Atlantic region; one in each of New Brunswick, Nova Scotia and Prince Edward Island.


  • Final Report [PDF]

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