Gaz Metro, Anticosti Hydrogarbons sign gas development deal

Gaz Métro has signed a deal with Anticosti Hydrocarbons to develop associated natural gas from Anticosti Island.

The agreement with Gaz Métro will provide Anticosti Hydrocarbons with access to the expertise of Québec’s leading gas distribution utility and distribution franchise-holder on Anticosti Island to identify economic, operational, and technical solutions to transporting associated natural gas to consumer markets should any be produced in the event hydrocarbon resource production gets underway on Anticosti Island.

There are a variety of technical issues to address, including storage, transportation, and distribution of the gas, said Gaz Metro in a statement.

Subject to compliance with the terms and conditions set forth in the agreement, Gaz Métro will have acquisition rights to any natural gas produced from wells on Anticosti Island and be able to transport or distribute it to the markets, at a price that will allow its marketing while taking into account prevailing prices.

In return for Gaz Métro’s expertise, Anticosti Hydrocarbons has agreed to an exclusive partnership with Gaz Métro for the next five years.

“This agreement in principle creates an important partnership for the Anticosti project. Developing associated natural gas will create positive spinoffs for Quebec and, with the new maritime strategy announced by the government, could provide a solid leg up to Québec businesses, particularly those involved in the Plan Nord,” stated Alexandre Gagnon, chair of the Anticosti Hydrocarbons operations committee.

[mappress mapid=”15665″]

Press Release; Image: Gaz Metro