As political divisions emerge over Bay du Nord, N.L. PCs lash out at federal Liberals

A report by Radio-Canada that suggests the proposed Bay du Nordoil project is causing division in Prime Minister Justin Trudeau's cabinethas ignited an angry response from opposition politicians in Newfoundland and Labrador.

The provincial legislature must reopen immediately for an emergency debate, and the seven members of Parliament from Newfoundland and Labrador have to stand up firmly for their province, David Brazil, leader of the Opposition Progressive Conservatives, said Thursday afternoon.

"The money generated here pays for health care, schools and roads. This is too important not to have an open debate," Brazil told reporters.

PC energy critic Lloyd Parrottsaid any politicians from the province who are not vigorously opposing any suggestion that Bay du Nord will be rejected should be ashamed.

"This is about about our future, right now more than any time in our history," said Parrott.

Equinor proposing 200,000 barrels per day

Brazil and Parrott were responding to a report published Thursday morning that revealed deep divisions within Trudeau's inner circle over the fate of Bay du Nord.

Norwegian oil giant Equinor and its partners are proposing to develop the massive oil field in the Flemish Pass, some 500 kilometres east of St. John's.

The plan is to use a floating production, storage and offloading vessel capable of producing up to 200,000 barrels daily.

Equinor executives have strongly suggested their intent to proceed with the project, with an investment decision expected within the next two years, and first oil by as early as 2028.

The province's oil industry is betting heavily on Bay du Nord following a series of crushing blows in the wake of the pandemic. Provincial leaders have also expressed support for the industry, saying the jobs and revenues its generates are needed to help deal with a staggering economic crunch, and aidthe transition to a low-carbon economy in the future.

But the project will not proceed without approval from Ottawa, with Environment MinisterSteven Guilbeaultexpected to decide next month whether to give the project the environmental green light.

Sources have told Radio-Canada, however,thatGuilbeaultis caught between opposing sides of the debate around the cabinet table.

Radio-Canada is reporting thatseveral Liberal ministers from Ontario, Quebec and British Columbia want to reject Bay du Nord.

Bay du Nord 'critical' to the province, says Parsons

Meanwhile, sources have said Deputy Prime MinisterChrystia Freeland, citing the economic benefits it would bring to Newfoundland and Labrador, is in favour. St. John's South-Mount Pearl MP Seamus O'Regan, the federal labour minister, is also defending the project, according to Radio-Canada.

In a message to CBC News on Thursday, however, an official in O'Regan's office said the minister could not comment because the project is "under active review."

In a statement, Newfoundland and Labrador's energy minister, Andrew Parsons, expressed support for Bay du Nord, describing it as "critical" to the province's economy.

"The Bay du Nord project will play a key role in helping the province meet global demand for responsible oil while supporting our commitment to net zero by 2050," Parsons said.

"If approved, Bay du Nord will be the most carbon-efficient development of its scale in Canada and will apply industry-leading emissions technologies.The provincial government continues to work with Equinor and our federal partners."

Parsons' Liberal cousins in Ottawa, however, have committed to some aggressive climate objectives, and some ministers wonder if Bay du Nord can fit into a scenario in which Trudeau has pledged to cap emissions from the oil and gas industry, and achieve net zero emissions by 2050.

While Ottawa can approve or reject the project, Radio-Canada is reporting a third option is being considered: using Bay du Nord as a negotiating tool to shape the future of the offshore industry.

In exchange for an approval, Radio-Canada reports, Ottawa could demand the province limit its production in the future or put an endto oil exploration after Bay du Nord.

Brazil said that third option is especially upsetting, and he's angry that MPs from other provinces could decide on the very economic future of Newfoundland and Labrador.

Brazil said he plans to write each member of Trudeau's cabinet "to outline why this project is important to all Canadians."

Parrott, meanwhile, said Bay du Nordrepresents "hundreds of billions' worth of work, revenue and royalties" to both levels of government.

Parrott added that Bay du Nord rejection couldsignal the beginning of the end for the province's oil industry, with oil companies watching closelyhow politicians handle the matter.

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