LNG would then be trucked to customers
Couillard said the transaction reflects the government’s new model for aid to business. Rather than relying on subsidies and grants to companies, Quebec prefers to invest directly as a shareholder.
In all, the LNG facility in Montreal will get a $118 million upgrade that will triple its production and storage capacity to 9 billion cubic feet of gas. Work is to start next spring and be completed by June, 2016.
LNG would then be trucked to customers across northern Quebec, including the giant Renard diamond mine being developed by Stornoway Diamond Corp. Stornoway will be the first mining company in Quebec to use LNG and could save up to $10 million a year in operating costs, officials estimated.
The LNG plant expansion will allow Gaz Métro to serve a range of customers in trucking and maritime transportation. Gaz Métro chief executive Sophie Brochu said Quebec is now leading the way in Canada when it comes to new and more efficient uses for natural gas.
Couillard said that access to cheaper, cleaner energy is the top concern of industries in the north. The area is not yet served by a gas pipeline.
Under the LNG process, gas is liquefied at temperatures near 160 degrees below zero centigrade, which increases storage capacity by 600 times.