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Gaz Métro to supply LNG to National Grid’s New England gas distribution companies

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Gaz Métro LNG LP, a Gaz Métro subsidiary, has announced the signing of commercial agreements with National Grid's New England gas distribution companies. National Grid is one of the largest natural gas distributors in the northeast of the US. Subject to the approval of the relevant regulatory bodies these three-year procurement contracts will provide National Grid with significant volumes of LNG to supply its existing storage facilities. Gaz Métro LNG is to produce the LNG in Gaz Métro's liquefaction, storage and regasification (LSR) plant in Montréal.

“LNG plays an important role in meeting the needs of our customers on the coldest days of the year,” said John Vaughn, National Grid Vice President of Energy Procurement. “Diversifying our LNG supply to fill our existing storage tanks and adding gas pipeline capacity in New England will help us better serve our customers for years to come.”

Martin Imbleau, Vice President, Development and Renewable Energies at Gaz Métro added: "National Grid is a major player in the New England natural gas industry and, with these agreements, Gaz Métro is reinforcing its presence in the regional LNG market, not only in Québec, but also in the northeastern United States. These major LNG contracts are in addition to existing agreements with various companies like the Société des traversiers du Québec, Transport Robert, Stornoway Diamonds and other New England clients."

These agreements were made possible thanks to the Gaz Métro LSR plant expansion project, which will increase the Montréal plant's liquefaction annual capacity from 3 billion to 9 billion ft3. Carried out with our partner, Investissement Québec, the work is valued at approximately $120 million and will be completed by fall 2016.

LNG is becoming increasingly popular due to the significant advantages it offers its users. Firstly, LNG takes up 620 times less space than natural gas in its gaseous state, which means we can store and transport larger quantities of energy to customers who cannot be served by the traditional gas network. In addition to reducing the environmental footprint of its users, LNG is nontoxic, colourless, odourless, non-corrosive and cannot be diluted in water.

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