The fruit of a strategic partnership between Gaz Métro and Investissement Québec
Montréal, April 24, 2017 - Sophie Brochu, President and CEO of Gaz Métro, and Pierre Gabriel Côté, President and CEO of Investissement Québec announced today that the new liquefied natural gas (LNG) production capacity of Gaz Métro GNL, a subsidiary of Gaz Métro and Investissement Québec, is now available at the Gaz Métro liquefaction plant located in Montréal.
Announced in September 2014, the project aimed to equip the plant with new loading facilities and a new liquefaction train that would triple the total annual LNG production and deliveries. The Gaz Métro liquefaction plant—the only one of its kind in Eastern Canada—now boasts a total annual production capacity of over nine billion cubic feet of LNG. It is thus able to meet the growing demand from a variety of markets for LNG, a competitive and cleaner energy source than petroleum-based products.
"I am delighted to see the successful completion of this key project for Québec. The distribution of LNG in the northern regions of Québec will constitute a major asset at both the environmental and the economic level. In addition to helping us reach the ambitious targets that we set for ourselves in the Energy Policy 2030, having this type of energy available will definitely be a major incentive to draw other companies to the Plan Nord area," declared Pierre Arcand, Minister of Energy and Natural Resources, Minister responsible for the Plan Nord, and Minister responsible for the Côte-Nord region.
"We are happy to see this innovative project become reality. We are now in a position to maximize the potential of LNG and are more capable than ever of meeting the energy needs of mines and industries far from the gas network as well as those in the heavy road and maritime transportation sector," explained Sophie Brochu, President and CEO of Gaz Métro.
"By replacing higher-emission forms of energy such as fuel oil, liquefied natural gas reduces greenhouse gas (GHG) emissions by up to 32%, as well as considerably reducing the emission of other atmospheric pollutants. It also strengthens our clients' competitive position. The commissioning of our new liquefaction train thus constitutes an added regional and economic development tool for Québec and a major asset in achieving our ambitious collective targets for reducing greenhouse gas emissions in Québec," added Ms. Brochu.
"The provision of LNG constitutes an advantage for all the companies that do not benefit from proximity to a pipeline network, and its availability will play an important role in the way companies choose locations in Québec. With today's announcement, even more companies will be able to benefit from a cleaner, more powerful energy source that offers excellent energy savings. Using LNG provides a significant advantage in the current economy, which is increasingly focused on sustainable development, by allowing companies to replace fuel oil or diesel, which are known to pollute more, with a better option," concluded Pierre Gabriel Côté, President and CEO of Investissement Québec.
It is worth noting that Gaz Métro LNG already supplies Stornoway's Renard mine, the heavy trucks of several transportation companies such as Groupe Robert, Transport Jacques Auger and YN.-Gonthier, and the ferry F.-A.-Gauthier operated by Société des traversiers du Québec. For its part, Groupe Desgagnés has also ordered four ships that can run on LNG. Lastly, ArcelorMittal has announced an LNG pilot project at its Port-Cartier pelletizing plant.
THE LNG PROJECT IN BRIEF
When cooled to -160°C, natural gas changes from a gas to a liquid. In liquid form, it takes up 600 times less space than in its gaseous state. In the same space, it is therefore possible to store 600 times more energy with LNG than with natural gas in a gaseous state—a definite advantage in terms of transportation and storage. Liquefied natural gas comes from Gaz Métro's liquefaction plant in the East of Montréal, in operation for 45 years. Once liquefied, natural gas is stored in the plant's cryogenic tanks. The plant has two loading docks for filling tanker trucks, which supply refuelling stations or service customers directly. LNG can then be distributed to customers within a radius of over 1,000 km from the LSR plant.
About Gaz Métro
With more than $7 billion in assets, Gaz Métro is a leading energy provider. It is the largest natural gas distribution company in Québec, where its network of over 10,000 km of underground pipelines serves more than 300 municipalities and more than 205,000 customers. Gaz Métro is also present in Vermont, where it has more than 315,000 customers. There, it operates through its subsidiaries in the electricity production market and the electricity and natural gas distribution market. Gaz Métro is actively involved in developing and operating innovative, promising energy projects, including natural gas as fuel, liquefied natural gas as a replacement for higher emission-producing energies, the production of wind and solar power, and the development of biomethane. Gaz Métro is a major energy sector player that takes the lead in responding to the needs of its customers, regions and municipalities, local organizations, and communities while also satisfying the expectations of its Partners (GMi and Valener) and employees.
Gaz Métro LNG L.P. (Gaz Métro LNG) is a subsidiary of Gaz Métro that was created to market and sell liquefied natural gas (LNG). Investissement Québec is a partner of Gaz Métro LNG, with a 42% stake in the partnership.
About Investissement Québec
Investissement Québec's mission is to foster the growth of investment in Québec, thereby contributing to economic development and job creation in every region. The Corporation offers businesses a full range of financial solutions, including loans, loan guarantees and equity investments, to support them at all stages of their development. It is also responsible for administering tax measures and prospecting for foreign investment.
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