A Calgary company is the first to land a supply contract with Quebec's major natural gas distributor based on obtaining certification for its responsible production of the heating fuel.
Seven Generations Energy Ltd. says it will send about 10 per cent of its northwestern Alberta gas production – roughly 50 million cubic feet per day – by existing pipelines to Energir s.e.c. (formerly known as Gaz Metro) under a multi-year agreement that began this month.
Seven Generations CEO Marty Proctor says the company will receive a small price premium under the contract but its real importance to the gas industry is in the establishment of a new market within Canada.
Energir says it aims to have about 20 per cent of its system gas purchases in the first year dedicated to the initiative which evaluates a producer's social and environmental performance under the EO100 Standard for Responsible Energy Development.
Energir spokeswoman Elise Rivard says customers will have the option to pay a small premium – about $2 per year for a residential client – to support the program, although natural gas from all sources will continue to be mixed in supply pipelines.
The Canada Energy Regulator says Quebec consumed an average of 591 million cubic feet of natural gas per day in 2017, about seven per cent of total Canadian demand. Energir says it distributes about 97 per cent of the gas consumed in Quebec.
Energir says it developed the certification program to give customers a better understanding of where its natural gas comes from and who produces it in order to ultimately reduce the sector's environmental footprint.
"Energir is committed to actively contribute to the fight against climate change by decarbonizing our activities through numerous actions like promoting energy efficiency, injecting more renewable natural gas in our system. This initiative is aligned with this commitment,” said executive vice-president Stephanie Trudeau in a news release.
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