MONTREAL, March 21, 2013 /CNW Telbec/ - Following the feasibility studies conducted in recent months, Gaz Métro has concluded that the current global commodity market conditions, specifically those in the iron ore and iron processing markets, make it very difficult to reach long-term agreements with major industrial clients in the Côte-Nord region. Moreover, in light of the decisions recently announced by certain companies to defer significant investments and cease operations, the minimum volumes of natural gas required to launch the project will not be reached as originally scheduled. Bearing these facts in mind, Gaz Métro must postpone plans for the 450-km extension of natural gas pipelines toward Baie-Comeau, Port-Cartier and Sept-Îles.
Gaz Métro will nevertheless continue to keep a close watch on developments in commodity markets and the potential energy needs of businesses and institutions in the Côte-Nord region, the last industrial port zone in Quebec without access to natural gas. The project is still a desirable one in order to improve environmental performance and enhance the competitive edge of businesses in the area. Using natural gas instead of oil would mean tens of millions of dollars in savings every year for potential clients, as well as a 30% reduction in greenhouse gas emissions and a decrease in smog-producing air pollutants.
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
SOURCE GAZ METRO