GDF Suez to purchase natural gas from Gaz Métro LNG

GDF Suez Gas has agreed to purchase 475,000Mcf of natural gas from Gaz Métro LNG of Montreal over a five-month period, starting in July 2014.

The contract includes an option to purchase an additional 500,000Mcf during the period.

The purchase agreement will make available up to 1.0Bcf of additional liquefied natural gas (LNG) to meet the peak 2014-15 winter demand in New England.

A tanker truck will be used to transport the LNG to New England utilities in order to meet gas inventory refill needs.

GDF Suez said gas utilities in the region purchase LNG during the summer and into fall to fill above-ground storage tanks in order to meet peak demand.

GDF Suez Gas president and CEO Frank Katulak said: "This second annual arrangement with Gaz Métro 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.

"Additional and reliable supplies such as these will also allow us to cost-effectively provide more services to the marketplace by optimising existing natural gas infrastructure in the region."

GDF Suez Gas, which is a subsidiary of GDF Suez Energy North America, owns and operates an LNG receiving terminal in Everett, Massachusetts, US.

The terminal, which started operations in 1971, currently serves the majority of natural gas utilities in New England.

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Image: A tanker truck will be used to transport the LNG to New England utilities. Photo: courtesy of GDF Suez Gas.