Two Canadian oil-production projects ate under way in the Grand Banks area offshore Newfoundland, and several others in the area are in various stages of development. These fields have significant potential gas reserves. Current projects will reinject excess solution (associated) gas as an energy-conservation measure. As the gas-production potential in the area increases, alternatives to reinjection may be requited. Most: future projects are expected to use floating production, storage, and offloading (FPSO) vessels. The gas-use alternatives studied were liquefied natural gas (LNG), methanol, and gas-to-liquid (GTL) conversion. These gas-use options will not affect the economics of these projects significantly. Any gas-use option not forced by necessity or legislation would have to pay for itself. On the basis of available technology and field location, the LNG option represents the best approach.