Gaz Metro signs resource deal for remote Anticosti Island
Hydrocarbon production on the island faces many technical issues, including storage, transportation and distribution
MONTREAL—Anticosti Hydrocarbons L.P., a limited partnership between four Quebec-based resource permit-holders, has signed a strategic agreement in principle with Gaz Métro L.P. to develop associated natural gas from Anticosti Island.
The Island, which sits at the outlet of the St. Lawrence river and is one-and-a-half times larger than Prince Edward island, is believed to have significant hydrocarbon reserves.
The agreement with Gaz Métro will help Anticosti Hydrocarbons identify economic, operational, and technical solutions to transporting natural gas to consumer markets once production gets underway on Anticosti Island.
There are a variety of technical issues to address, including storage, transportation, and distribution of the gas. Subject to compliance with the terms and conditions set forth in the agreement, Gaz Métro will have acquisition rights to any natural gas produced from wells on Anticosti Island and be able to transport or distribute it to the markets.
In return for Gaz Métro’s expertise, Anticosti Hydrocarbons has agreed to the exclusive partnership with Gaz Métro for the next five years.
Anticosti Hydrocarbons L.P. is a partnership between Ressources Québec Inc., Pétrolia Inc., Saint-Aubin E&P (Québec) Inc., and Corridor Resources Inc.