Gaz Metro Issues Non-Binding Call for LNG Purchase Submissions
Gaz Métro LNG, a subsidiary of Gaz Métro, is issuing a non-binding call for submissions for the purchase of LNG.
To evaluate market needs, Gaz Métro LNG is offering potential customers in Quebec and neighbouring regions the opportunity to make their needs for LNG known by responding to this non-binding call for submissions by January 31, 2014.
On February 4, 2013, Gaz Métro announced that it was considering different solutions to increase the availability of LNG in Quebec, including adding liquefaction capacity to its liquefaction, storage and regasification (LSR) plant located in Montreal.
This non-binding call for submissions will allow Gaz Métro to assess the feasibility of a project to expand the LSR plant. If the project goes forward, Gaz Métro LNG intends to negotiate LNG sales contracts with respondents.
“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,” stated Martin Imbleau, Vice President, Business Development and Renewable Energy at Gaz Métro.
LNG sales contracts will be for a duration of 10 years. The price of LNG, in Canadian dollars, is based on the price Gaz Métro LNG pays for natural gas delivered by gas pipeline to Montreal, with a markup to cover the cost of liquefaction. Customers will take delivery of LNG at the LSR plant and will therefore be responsible for transporting LNG from the LSR plant. If required, Gaz Métro LNG may provide LNG transportation services from the LSR plant for customers, or supply the tankers needed to transport LNG, according to conditions to be agreed upon. The service should begin in spring 2016. However, Gaz Métro LNG does have some quantities of liquefied natural gas that it could make available between now and then.
LNG World News Staff, November 21, 2013; Image: Gaz Métro