GDF SUEZ Gas NA (GSGNA) announced it has entered into a purchase agreement with Gaz Metro LNG, L.P. of Montreal that will make available up to 1.0 Bcf (billion cubic feet) of additional LNG (liquefied natural gas) to meet the peak 2014-2015 winter demand in New England.
"This second annual arrangement with Gaz Metro represents an important step in the further diversification of our supply portfolio, as well as an opportunity for us to take advantage of gas purchases on this continent to increase our supply assets, and to continue to ensure reliability to New England when resources can be tight--the winter heating season," said Frank Katulak, President and Chief Executive Officer of GSGNA. "Additional and reliable supplies such as these will also allow us to cost effectively provide more services to the marketplace by optimizing existing natural gas infrastructure in the region."
Under the contract, GSGNA will commit to purchase 475,000 Mcf (thousand cubic feet) of natural gas over a five-month period beginning in July 2014, with the potential to purchase an additional 500,000 Mcf over the same period. The LNG will be transported by tanker truck to New England utilities to help meet gas inventory refill requirements. Gas utilities in the region purchase LNG during the summer and into fall to fill above-ground storage tanks. That LNG is then drawn down during cold winter days to meet peak demand needs.
About GDF SUEZ Gas NA
GDF SUEZ Gas NA is a subsidiary of GDF SUEZ Energy North America, which manages a range of energy businesses in the United States, Mexico, and Canada. These businesses include electricity generation and cogeneration, natural gas and liquefied natural gas (LNG) distribution and sales, and retail energy sales and related services to commercial and industrial customers. GDF SUEZ Gas NA owns and operates an LNG receiving terminal in Everett, Mass., which began operations in 1971 and currently serves most of the natural gas utilities in New England and key power producers through both pipeline deliveries and an average of 10,000 tanker truck deliveries of LNG each year.
About Gaz Metro
With over $5 billion in assets, Gaz Metro 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 Metro is also present in Vermont, producing electricity and distributing electricity and natural gas to cater to the needs for some 300,000 customers. Gaz Metro 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 Metro 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 Metro inc. and Valener) and employees. www.gazmetro.com.