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GDF Suez to buy LNG from Gaz Metro for New England

  • Märkte: Electricity, Natural gas
  • 12.08.14

GDF Suez will buy LNG equivalent to 475mn cf (13.4mn m³) of gas in July-November this year, with an option to buy up to 500mn cf more during the same period, from Montreal-based utility Gaz Metro.

GDF Suez will truck the supplies to New England utilities to refill LNG storage sites for the coming winter, the French company said today. New England does not have significant salt cavern gas storage and partly relies on LNG peakshaving plants and 47 LNG storage facilities to meet peaking winter demand.

GDF Suez owns the Everett LNG import terminal outside Boston, Massachusetts. That facility primarily sends regasified LNG to the nearby Mystic river gas-fired power plant, but GDF Suez also trucks some LNG out of Everett to New England LNG storage sites.

The LNG from Gaz Metro will allow GDF Suez to "cost effectively provide more services to the marketplace by optimizing existing natural gas infrastructure in the region," GDF Suez Gas North America chief executive Frank Katulak said.

It is the second such annual arrangement with Gaz Metro, he added.

The purchase will not significantly reduce the amount of LNG trucked out of Everett, a GDF Suez spokeswoman told Argus. In recent years, Everett has sent out about 10,000 truckloads of LNG a year. Each truck carries about 10,000 USG of LNG, equivalent to about 834,000 cf of gas, so the total potential purchases of 975mn cf from Gaz Metro would represent about 1,170 truckloads, or about 8.5pc of the average number of annual truckloads in recent years.

In the first seven months of 2014, more than 6,200 truckloads left Everett, the spokeswoman added. That represents a total volume equivalent to more than 5.17 Bcf of gas.

The total volume of 975mn also represents about one-third of a standard-sized LNG shipment that typically arrives at Everett. Last year, Everett imported the gas equivalent of 64 Bcf, or two-thirds of total US imports in 2013. Everett's imports have declined as some pipeline expansions have allowed New England to use larger volumes of gas from the nearby prolific Marcellus shale gas formation.

Last year's import total at Everett was 26pc less than what the terminal imported in 2012, and 53pc less than the 2011 total.

Last fall, Gaz Metro said it charged a liquefaction fee of $5.57/mmBtu and a gas balancing fee of $1.11/mmBtu for the sale of LNG. It owns a liquefaction plant with a production capacity equivalent to 3 Bcf/d of gas and a storage capacity equivalent to 2 Bcf. It is considering expanding the size of the facility.

rn/dcb

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