Distrigas of Massachusetts, through its affiliate GDF Suez Gas NA, has entered into contracts to sell LNG to New England gas utilities.
The contracts, which are for approximately 9.5 billion ft3 of LNG (roughly equal to three shiploads), will help meet the utilities’ peak demand for natural gas in the 2015/16 winter and beyond. The LNG will be delivered this summer, and stored until required later in 2015.
The company has additionally offered contracts for the long-term supply of LNG to its utility customers. Volumes sold and supplies offered are based on US natural gas prices.
Distrigas has concluded an agreement to supply a large New England natural gas utility with 6 billion ft3 of LNG in 2015 and at least 3 billion ft3 of LNG per year from 2016 – 2024.
“These LNG sales agreements underscore the important role LNG plays in advancing natural gas supply security and price stability for New England – today and well into the future,” said Frank Katulak, President and CEO of GDF Suez Gas NA.
“Because the infrastructure already exists and the supply can be efficiently deployed locally to customers who need it, LNG is the most cost-competitive and reliable option for serving the region’s peaking needs.”
Commenting on the recently signed agreement, Katulak added: “The long-term nature of the deal shows significant foresight by this customer as it will provide greater certainty around its natural gas supply, which continues to be more and more important to the region. In addition, this agreement underscores that we can optimise the region’s current pipeline capacity for the foreseeable future, potentially avoiding much more expensive and expansive investments.”
For both the short and long-term contracts, LNG will be trucked from the Distrigas Everett Marine Terminal, located just north of Boston, to the utilities’ LNG facilities across New England. Deliveries began in April 2015.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/11052015/distrigas-lng-for-new-england-peak-demand-728/