Natural gas: An economical and environmental alternative to traditional
fuels
MONTREAL, Feb. 4, 2013 /CNW Telbec/ - Gaz Métro is proud to take stock
of its achievements in line with its liquefied natural gas (LNG)
development plan. The goal of this plan is to supply LNG to the heavy
transport industry in Quebec and eastern Canada, via its indirect
subsidiary Gaz Métro Transport Solutions, LP (GMTS), and subsequently
to assess the possibility of hauling LNG by truck to service more
remote areas from Gaz Métro's natural gas pipeline network.
Accordingly, GMTS has been working with a number of partners and road
transportation companies since 2010 to ensure that local carriers can
enjoy the significant economic and environmental advantages of LNG,
compared with diesel fuel. GMTS is playing a pivotal role as an expert
and leader in the planning and implementation of initiatives designed
to develop LNG-powered fleets. In addition, GMTS owns and operates two
private fuelling stations in Quebec, on Robert Transport sites: one on
the South Shore of Montreal and the other (a mobile unit) in the Quebec
City area. It also owns and operates a third fuelling station in the
Mississauga area.
Achievements and current projects
In the heavy transportation sector, as a result of infrastructure
investments made by GMTS (fuelling stations):
-
Transport Robert 1973 Ltd. (Robert Transport) plans to have
130 LNG-powered trucks (out of a total 180 trucks ordered) on the road
by early summer 2013.
-
Transport YN.-Gonthier Inc. introduced its first two LNG trucks in
October 2012.
-
A first for eastern Canada: Camions Excellence Peterbilt Inc. now has
one LNG-fuelled truck available for short-term rentals.
In the marine transportation sector:
The Société des traversiers du Québec (STQ) has announced the purchase
of three LNG-powered ferries, which will be able to procure natural gas
through GMTS:
-
One ferry for the Matane-Baie-Comeau-Godbout crossing
-
Two ferries for the Tadoussac-Baie-Sainte-Catherine crossing.
In the rail transportation sector:
-
GMTS is supplying LNG as part of a project to develop an LNG-powered
locomotive, in collaboration with Westport Innovations, CN and
Electro-Motive Diesel, Inc. (EMD).
Projects in development
-
GMTS is in talks with several carriers interested in ordering LNG trucks
in the coming months.
-
A series of public fuelling stations will be set up along highways 20
and 401 to strengthen and complement the existing private network. This
public network may also eventually merge with the North American
network, thereby enabling carriers to provide continent-wide coverage
using natural gas-fuelled vehicles. The first step will entail setting
up public stations in Rivière-du-Loup, Lévis and Cornwall, which are
expected to be operational by the end of 2013. Two mobile fuelling
stations have been ordered to accelerate the process. During the second
phase, two additional public stations will be incorporated into the
network: one east of Toronto and the other south of Montreal.
Catering to the increased demand for LNG
Given the projected rapid growth in market demand for LNG, specifically
from the perspective of GMTS to which Gaz Métro provides liquefaction
services, Gaz Métro is currently looking into several solutions for
improving the availability of LNG in Quebec, including increasing
liquefaction output, either by itself or via a subsidiary, directly
through its liquefaction, storage and regasification (LSR) plant. This
would be contingent on the findings of the requisite financial studies
in terms of project feasibility and, eventually, on the outcome of the
appropriate regulatory processes. The LSR plant, which supplies Gaz
Métro customers during peak periods, is located in the east end of
Montreal and has been operating for more than 40 years. As the present
storage capacity of the two existing reservoirs easily meets current
customer demand, Gaz Métro is now working on the front-end engineering
design (FEED) for a project focusing solely on increasing liquefaction
capacity to accommodate LNG needs. This should be finalized by the end
of March. Following this, provided that major contractual agreements
are signed with such clients as GMTS, a request for proposals may
follow in April for the engineering, procurement and construction (EPC)
of an additional liquefaction unit.
The environmental advantage of natural gas
The transport industry is Quebec's leading producer of greenhouse gas
(GHG) emissions. In 2009, it accounted for 43.5% of the total emissions
generated. Road freight transportation via heavy diesel vehicles is
responsible for 30.3% of this figure, making it a key target for GHG
reduction efforts. Natural gas, which emits up to 25% less GHG
emissions than diesel, is the alternative of choice.
The economic advantage of natural gas
Fuel represents one of the transportation industry's biggest expenses,
and the cost of natural gas can be up to 40% less than diesel. By using
natural gas to meet their fuel needs, companies can reduce their
operating expenses at the same time as they improve their environmental
footprint.
About Gaz Métro Transport Solutions
Gaz Métro Transport Solutions (GMTS) is an indirect subsidiary of Gaz
Métro, Quebec's leading natural gas distributor. GMTS was created to
encourage the transportation industry to switch to natural gas, the
only available alternative to diesel. GMTS is committed to developing a
market in Quebec for compressed and liquefied natural gas as a source
of fuel. Natural gas is a more economical choice and generates less
greenhouse gas emissions than diesel. It therefore has enormous
potential for the transportation industry from a commercial standpoint.
www.gazmetrost.com
About Gaz Métro
With over $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. www.gazmetro.com
Cautionary note regarding forward-looking statements
This press release may contain forward-looking information within the
meaning of applicable securities laws. Such forward-looking information
reflects the intentions, plans, expectations and opinions of the
management of GMi, in its capacity as General Partner of Gaz Métro, and
acting as manager of Valener (the management of the manager) and is
based on information currently available to the management of the
manager and assumptions about future events. Forward-looking statements
can often be identified by words such as "plans," "expects,"
"estimates," "forecasts," "intends," "anticipates" or "believes" or
similar expressions, including the negative and conjugated forms of
these words. Forward-looking statements involve known and unknown risks
and uncertainties and other factors beyond the control of the
management of the manager. A number of factors could cause the actual
results of Valener or of Gaz Métro to differ significantly from current
expectations, as described in the forward-looking statements, including
but not limited to the general nature of the aforementioned, terms of
decisions rendered by regulatory agencies, the competitiveness of
natural gas in relation to other energy sources, the reliability of
natural gas and electricity supply, the integrity of the natural gas
and electricity distribution systems, the ability to complete
attractive acquisitions and the related financing and integration
aspects, the ability to secure future financing, general economic
conditions, exchange rate and interest rate fluctuations, weather
conditions and other factors described in the Risk Factors Relating to
Valener and the Risk Factors Relating to Gaz Métro sections of
Valener's and Gaz Metro's MD&As for the year ended September 30, 2012
and in Valener's disclosure filings. Although the forward-looking
statements contained herein are based on what the management of the
manager believes to be reasonable assumptions, including assumptions to
the effect that no unforeseen changes in the legislative and regulatory
framework of energy markets in Quebec and in the New England states
will occur; that the applications filed with the Régie, in particular
the rate applications and the authorized return on deemed equity
application will be granted as filed; that natural gas prices will
remain competitive; and that no significant event occurring outside the
ordinary course of business, such as a natural disaster or other
calamity, will occur; in addition to the other assumptions described in
the Valener and Gaz Métro MD&As for the quarter ended December 31,
2012, the management of the manager cannot assure investors that actual
results will be consistent with these forward-looking statements. These
forward-looking statements are made as of this date, and the management
of the manager assumes no obligation to update or revise them to
reflect new events or circumstances, except as required pursuant to
applicable securities laws. Readers are cautioned to not place undue
reliance on these forward-looking statements.
SOURCE: GAZ METRO
