Gaz Métro requests LNG submissions

Gaz Métro LNG, a subsidiary of Gaz Métro, has issued a non-binding call for submissions for the purchase of liquefied natural gas (LNG).

In order to evaluate market needs, the company is offering potential customers in Quebec and other regions the opportunity to make their LNG needs known by responding to the call for submission by the end of January 2014.

In February this year, Gaz Métro announced it was considering alternative solutions to increase the availability of LNG in Quebec, including increasing the liquefaction capacity of its liquefaction, storage and regasification (LSR) plant in Montreal, Canada.

The non-binding call for submissions will enable Gaz Métro to assess the possibility of a project to expand the Montreal LSR plant. In the case of the project moving forward, the company will negotiate LNG sales contracts with groups who respond to the submission request.

“We have reached an important milestone in our strategy for developing this promising market. LNG is the best way to reduce greenhouse gases (GHG) emitted by heavy vehicles while lowering fuel costs. It is also a way to help industries located far from the gas network by offering fuel that is competitive and able to reduce their carbon footprint,” commented Martin Imbleau, Business Development and Renewable Energy at Gaz Métro.

Conditions of submissions

• Sales contracts will last 10 years.
• The price of LNG is based on the price Gaz Métro LNG pays for natural gas delivered by pipelines to Montreal, with a markup to cover the cost of liquefaction.
• Customers will be responsible for transporting LNG from the LSR plant.
• If necessary, Gaz Métro may provide transportation services from the LSR plant for customers, or supply tankers to transport LNG.
• The service should begin in the spring of 2016, although Gaz Métro currently has quantities of LNG that it could make available before 2016.

Adapted from press release by Katie Woodward

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/21112013/gaz_m%C3%A9tro_requests_lng_471/