An oversized oil project has floated away from Argentia. So what's next for the port?

Terry Roberts · CBC News

· Posted: May 15, 2025 4:30 AM EDT | Last Updated: 11 minutes ago

Onlookers witnessed a feat of engineering past week erstwhile the monolithic basal for the West White Rose fixed wellhead lipid level was floated distant from its graving dock astatine Argentia, marking the extremity of a years-long operation task that anchored activities and dominated the scenery astatine the sprawling Placentia Bay port.

The 210,000-tonne, 145-metre precocious factual gravity structure, arsenic it's called, volition soon beryllium towed to the Grand Banks, wherever it volition beryllium anchored to the oversea level successful astir 120 metres of water, and mated with a 25,000-tonne topside operation that volition marque its mode from Texas. Oil accumulation is scheduled to statesman sometime adjacent year.

The milestone was a origin for solemnisation connected galore fronts, but it besides raises questions astir the port's aboriginal present that the Cenovus task successful Argentia is complete.

But astatine the port's administrative bureau this week, you won't find immoderate unhappy faces.

"[The] future is highly bright," CEO Scott Penney said during an interrogation with CBC News.

On Tuesday, determination continued to beryllium a buzz of enactment astatine the port, with shipping containers being moved astir by oversized forklifts, monolithic upwind turbine blades being loaded onto an awaiting ship, and excavators and dense trucks operating astatine a adjacent recycling yard.

Some 40 businesses run astatine the port, employing much than 240 people, and if radical like Penney get their way, Argentia volition roar erstwhile again successful the post-West White Rose era.

Iron ore processing astatine Argentia?

Penney and his squad knew the Cenovus task would yet end, and they person been engaged selling the larboard astir the globe successful caller years, and laying the instauration for a $100-million terminal enlargement astatine Cooper Cove that is expected to interruption crushed adjacent year.

The opportunities, Penney said, are origin for excitement.

Imagine, for example, an robust ore processing works astatine Argentia, connected a standard similar to the nickel processing works successful adjacent Long Harbour, powered by zero-emitting hydrogen made from upwind vigor astatine the port.

Penney said he's successful talks with an unnamed mining institution for a script that would spot robust ore from Labrador shipped to Argentia, wherever it would acquisition secondary processing with minimal greenhouse state emissions to make alleged "green steel."

"Yes, we person perfectly had conversations. That's what I tin archer you," said Penney, adding he's muzzled from disclosing immoderate details by a non-disclosure agreement.

Still anticipation for hydrogen

A projected wind-hydrogen-ammonia task astatine Argentia by Pattern Energy is stalled due to the fact that of precocious accumulation costs and undeveloped export markets, but talks of a concern with a mining institution is breathing caller beingness into the hydrogen concept, said Penney. 

"Hydrogen is simply a viable option," helium said.

Pattern Energy is besides keen connected competing for a contract to proviso upwind vigor to the province's powerfulness grid, with Newfoundland and Labrador Hydro expected to telephone for expressions of involvement sometime this year, said Penney.

The West White Rose task besides leaves down an important bequest successful the signifier of a specialized graving dock, and a freshly dredged transmission successful the harbour to let the CGS to beryllium towed into Placentia Bay.

Penney said this caller infrastructure has allowed the larboard to beryllium shortlisted for a "transitional energy" task that would impact years of operation activity, and make much-needed employment.

Again, Penney tin lone accidental truthful much, but said "the accidental is real," with a decision before the extremity of this year.

"We are shortlisted down to little than three, truthful that is rather encouraging for a larboard of our size to vie globally," helium said.

He besides sees a relation for the larboard successful Equinor's Bay du Nord oil project.

But overmuch of this activity, if it occurs, is inactive years away. The provincial authorities is forecasting an uptick successful unemployment implicit the adjacent 2 years, and the jobless complaint for members of the gathering and operation unions represented by Trades N.L. has present reached 70 per cent, according to enforcement director Bob Fiander.

"We're successful a spot of a lull close now," Fiander told CBC News recently.

Key to province's growth

Meanwhile, Argentia has evolved into a divers port, supporting industries specified arsenic marine transportation, renewable energy, aquaculture, offshore lipid and mining.

Penney said the larboard has established partnerships with companies astir the globe, and Argentia is present recognized successful immoderate of the starring boardrooms due to the fact that of its strategical location, ample footprint of much than 9,000 acres, ice-free access, and a skilled workforce.

Penney believes Argentia will play a cardinal relation successful the province's aboriginal growth, and that volition besides mean bully things for the adjacent Town of Placentia.

"We stay optimistic that the adjacent large task for this area will come," said Wayne Power, Placentia's lawman mayor.

Placentia received astir $2.5 cardinal successful grants from the lipid companies for hosting the West White Rose task astatine Argentia, truthful the municipality is hopeful that much large projects are connected the horizon.

But for now, Power said there's a noticeable downturn successful activity.

"We're seeing vacancy rates present with our apartments. You're not seeing arsenic galore radical astir the community availing of businesses and services," helium said.

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