Canadian Manufacturing

Gaz Métro postpones eastern Que. pipeline extension project

by Canadian Manufacturing Daily Staff   

Canadian Manufacturing
Manufacturing Energy Oil & Gas pipeline Quebec

Firm had plans for 450-kilometre natural gas pipeline extension in Côte-Nord region of Quebec

MONTREAL—Natural gas firm Gaz Métro is postponing plans to extend a pipeline in eastern Quebec.

The energy provider had plans for a 450-kilometre natural gas pipeline extension in the Côte-Nord region of Quebec toward Baie-Comeau, Port-Cartier and Sept-Îles.

According to the company, the decision was made after feasability studies concluded “the current global commodity market conditions … make it very difficult to reach long-term agreements with major industrial clients in the Côte-Nord region.”

Gaz Métro made particular note of challenging times for the local iron ore industry in a statement about its decision.


“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,” the firm said.

According to Gaz Métro, it will “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.”

Using natural gas in the region instead of oil could mean a 30 per cent reduction in greenhouse gas emissions, the company said.

Gaz Métro has more than $5-billion in assets, and operates a 10,000-kilometre underground network of natural gas pipelines in Quebec.


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