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Message: Gaz Metro says talks have slowed with Gazprom about a liquefied gas terminal
Gaz Metro, Quebec’s natural gas distributor, said yesterday its earnings improved in the fiscal year ended Sept. 30, despite the recession’s heavy impact on commercial and industrial demand.
Gaz Metro CEO Sophie Brochu says talks have slowed with Russia’s Gazprom about a liquefied gas terminal near Lévis.
Chalks up gain despite slumping commercial and industrial demand
PIERRE OBENDRAUF THE GAZETTE
It is pushing ahead with the Seigneurie wind farm project near Quebec City with partner Boralex Inc. after the initial 272MW won regulatory approval. Detailed planning for further stages is now under way.
But the $800-million liquefied natural gas terminal project near Lévis is on ice.
CEO Sophie Brochu said uncertain financial, commodity and construction markets “have slowed talks” with Gazprom of Russia, the prospective natural gas supplier, and “signing of an agreement is unlikely in the short term.”
Since the project was shaped up over in 2007-2008, gas prices in North America have plummeted because of oversupply.
The Lévis plant, part of Gaz Metro’s supply diversification policy, ran into heavy opposition from Île d’Orléans residents but won government support.
Gaz Metro normally posts a loss in the fourth quarter of its fiscal year because demand falls off steeply in the summer. This year, the loss was $36.7 million vs. $39.5 million a year earlier.
For the full fiscal year, adjusted earnings were $159.6 million, or $1.32 a unit, up from $153.3 million, or $1.28 a unit a year earlier.
Revenue was $2.25 billion, up from $2.17 billion. Capital spending was $152 million, up from $135.5 million.
The company has 180,000 residential customers in Quebec, up more than 6,000 during the year, as well as 136,000 at its Vermont electric power distribution subsidiary.
Gas volumes slipped 1.8 per cent overall partly because of energy conservation measures.
The commercial market took three per cent less gas and the industrial market 19 per cent less, because of the recession’s impact on the metals, refining and petrochemical industries.
Market penetration for gas in greater Montreal’s new housing market was 19 per cent.
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