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Quebec and Gaz Métro to make LNG available in 2016

LNG Industry,

Sophie Brochu, President and CEO of Gaz Métro, is pleased with the partnership announced with Philippe Couillard, Premier of Québec, Pierre Arcand, Minister of Energy and Natural Resources and Minister responsible for the Plan Nord, and Jean D'Amour, Minister for Transport and the Implementation of the Maritime Strategy, to increase the natural gas liquefaction capacity at the Gaz Métro plant in eastern Montréal.

Transportation sectors

In keeping with government commitments, this will, as of 2016, make it possible to take the first step in supplying regions remote from the natural gas network, particularly Nord-du-Québec and Côte-Nord, as well as the marine and road transportation sectors.

"This partnership constitutes an important milestone in the Plan Nord by providing an additional development tool to businesses and the regions. Liquefied natural gas will also be used as an alternate, greener fuel source for road and marine transportation, which is closely tied to the government's objectives in its Maritime Strategy and plan to fight against climate change," stated Brochu.

LNG investment

Through Investissement Québec, the government of Quebec will have a CAN$ 50 million stake in the Gaz Métro subsidiary responsible for marketing liquefied natural gas (Gaz Métro LNG).

Estimated to cost CAN$ 118 million, the project will help to meet the growing demand for LNG by tripling output capacity at Gaz Metro's plant. The work will commence in May 2015 and continue until June 2016, making LNG available to customers in 2016.

Potential customers

Discussions are underway with several potential customers, including Stornoway Diamonds, which has already confirmed that it plans to acquire LNG from Gaz Métro LNG. Stornoway Diamonds will be the first mining company in Quebec to use LNG.

In the road transport sector, Transport Robert has played a pioneering role, with a large fleet of vehicles already running on LNG. In the maritime sector, the Société des traversiers du Québec will use LNG for its three new ships, from 2015. In addition, following a recent order of ships, Groupe Desgagnés will become the first marine freight transport company in Quebec to obtain LNG from Gaz Métro LNG.

Access to natural gas

"Thanks to low natural gas prices and technological advances, we can now serve new customers that are remote from the natural gas network, as well as customers in the transport sector. Access to natural gas will make our businesses more competitive while reducing their environmental footprint," Brochu concluded.

Adapted from press release by Katie Woodward

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