Gaz Metro, Government of Quebec partner up on LNG

Gaz Metro and the government of Quebec signed a partnership to increase the natural gas liquefaction capacity at the Gaz Metro plant in eastern Montreal. 

Sophie Brochu, President and CEO of Gaz Métro, welcomed the partnership together 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.

In keeping with the government’s commitments made in its latest budget, 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, a statement by  Gaz Métro said.

“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.

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

Estimated to cost $118million, the project will help, in part, to meet the growing demand for liquefied natural gas by tripling output capacity at Gaz Metro’s plant. The work will start in May 2015 and continue until June 2016, making liquefied natural gas available to customers as of summer of 2016.

According to the statement, discussions are underway with several potential customers, some of whom have already confirmed that they plan to acquire liquefied natural gas from Gaz Métro LNG. Stornoway Diamonds is one such client, and it will be the first mining company in Quebec to use liquefied natural gas.

In the road transport sector, Transport Robert has played a pioneering role, with a large fleet of vehicles already running on liquefied natural gas. As for maritime transport, the Société des traversiers du Québec will use liquefied natural gas for its three new ships starting in 2015. In addition, Groupe Desgagnés recently ordered two of a series of ships. As of 2016, it will become the first marine freight transport company in Québec to obtain liquefied natural gas from Gaz Métro LNG.

“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,” stressed Brochu.

Press Release, October 1, 2014; Image: Gaz Metro