Gaz Métro LNG issues a non-binding call for submission for liquified natural gas

November 20, 2013 - Press releases

Montreal, November 20, 2013 — Gaz Métro LNG, a subsidiary of Gaz Métro, is issuing a non-binding call for submissions for the purchase of liquefied natural gas (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. To participate, interested parties can fill out the form at http://gnl.gazmetro.com/Default.html.

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.

Summary of conditions

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. All the conditions can be reviewed at lng.gazmetro.com.

The environmental benefits of natural gas

Natural gas is the cleanest hydrocarbon. Using natural gas instead of diesel in heavy vehicles reduces GHG emissions up to 25%. In addition, using natural gas in place of heavy fuel oil reduces GHG emissions up to 32% and significantly reduces atmospheric pollutants that cause urban smog.

The economic benefits of natural gas

Fuel is one of the top budget items for industries and transporters. Given the current trend in energy prices, using LNG can lead to significant economic gains depending on a customer's individual circumstances.

About Gaz Métro and Gaz Métro LNG

Gaz Métro LNG, L.P. is a subsidiary of Gaz Métro that was created to market and sell liquefied natural gas (LNG).

With more than $5 billion in assets, Gaz Métro is a leading energy provider. It is the largest natural gas distribution company in Quebec, where its 10,000-km underground network of pipelines serves 300 municipalities and more than 185,000 customers. Gaz Métro is also present in Vermont, producing electricity, and distributing electricity and natural gas to cater to the needs to some 300,000 customers. Gaz Métro is actively involved in the development of innovative, sustainability-oriented energy projects such as the production of wind power, the use of natural gas as a transportation fuel and the development of biomethane as a renewable energy source. Gaz Métro is committed to ensuring the satisfaction of its customers; providing support to businesses, local organizations, families and communities; and meeting the needs of its partners (Gaz Métro Inc. and Valener) and employees.

Information:

Media
Audrey Giguère
Media and Public Affairs
514 598-3449

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