Natural gas hydrates, a vast potential source of clean energy, are ice-like substances composed of water and natural gas that form in low temperatures and under high pressure. Many reservoirs are associated with deep permafrost of certain Arctic sedimentary basins and in marine sediments in coastal zones.

NRCan's Geological Survey of Canada led a research project involving more than 50 scientists, which began in mid-December 2001, in the Mallik gas hydrate field in the Mackenzie Delta on the shores of the Beaufort Sea. Three research wells were drilled through the permafrost to carry out a diverse scientific program aimed at contributing to the evaluation of the potential and economic viability of gas hydrate production and to study the role of gas hydrates in climate change.

Partners in the project include the Japan National Oil Corporation; the United States Geological Survey and United States Department of Energy; the German government's GeoForschungsZentrum Potsdam; the Gas Authority of India Ltd. and the Oil & Natural Gas Corporation Ltd. of India; the International Continental Drilling Program; and Canadian industry. Japex Canada Ltd. was responsible for drilling operations.

"This project positions Canada at the forefront of natural gas hydrate research, and Canadian industry stands to benefit greatly from developing technologies to produce gas hydrates commercially," said Herb Dhaliwal, Minister of Natural Resources Canada. "Through its support of this research, NRCan demonstrates that it is dedicated to assuring a sustainable Canadian supply of energy for the future."

The scientists leading this research project are very encouraged by the results of the production testing, a first step toward evaluating gas hydrates as an energy source. Estimates suggest that the world's natural gas hydrate reservoirs contain more than twice the amount of energy found in all other known sources of fossil fuels (including natural gas, oil, coal and oil sands). In Canada, natural gas hydrate reserves may be up to 32 times larger in volume than conventional natural gas sources. Transforming hydrates into a useable energy source could make a major contribution to self-sufficiency in many countries.

NRCan will continue to assess the practical energy potential of natural gas hydrates through international collaboration on gas hydrate research, while pursuing strong linkages with Canadian industry, universities, and other federal and territorial agencies.

Funding for this project was provided for in the December 2001 budget and is therefore built into the existing fiscal framework.

For more information the gas hydrates research project, visit the following Web site http://www.gashydrate.com