GDF Suez Gas entered into a purchase agreement with Gaz Metro LNG of Montreal that will make available up to 1.0 Bcf of additional LNG 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 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.
Press Release, August 13, 2014