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Distributed Gas Solutions Canada (DGSC) qualified by Quebec Government under terms of Call for Projects for supply of liquefied natural gas (LNG) to North Shore


A STEP CLOSER TO REALIZING A PIVOTAL PROJECT FOR THE NORTH SHORE


Sept-Îles, May 31, 2019 – DGSC’s partners and majority shareholders have a history of success developing maritime transportation and infrastructure projects on the North Shore and elsewhere on the Plan Nord territory.

“We are resolute in our intention to continue to participate in the sustainable development of Quebec’s North Shore and its remote regions,” commented Stéphane Boyer, CEO of DGSC whose track record includes work on the Magpie River hydroelectric project and several wind farms in Quebec.

The DGSC solution is three-fold:

– Establishing a micro-liquefaction site in one of Saguenay’s industrial-port zones, near the Énergir distribution network

– Organizing a transport network commensurate with the volume to be carried: with a few trucks at first and, as regional demand grows sufficiently, by ship from the Port of Saguenay’s Grande-Anse terminal

– Installing and managing LNG storage and vaporization equipment on the users’ premises

The DGSC solution will involve over $120 million in investments between 2019 and 2021 for equipment, construction, facilities, and related expenses, with local spin-offs of nearly $20 million a year, notably for the North Shore and Saguenay regions.

The switch to natural gas by the two major regional consumers of petroleum products, Aluminerie Alouette in Sept-Îles and ArcelorMittal in Port-Cartier, represents an annual reduction of greater than 75,000 tonnes of CO2 emissions annually, or the equivalent of 18,000 fewer cars on the roads.

The advantages of DGSC’s proposed solution are undeniable:

1. Modular micro-liquefaction units, installed as near to the final end users as possible to minimize costs and emissions related to transportation. Proven technology with some 30 units installed worldwide since 2014, the units would be operational in short order.

2. An efficient, competitive model that is quickly adaptable to evolving demand on the North Shore, Quebec’s far north, and Saguenay-Lac St-Jean regions.

3. Investment in a new natural gas micro-liquefaction hub in the Saguenay region, which will generate significant economic benefits for the region, particularly with regard to Énergir, Hydro-Jonquière, and local job creation.

4. New competitive offer making it possible to serve institutional and commercial end users for the replacement of propane, diesel and fuel oil.

5. Mobile equipment capable of being re-deployed in the future to meet changing market needs.

“DGSC’s ambition is to serve all of Quebec’s regions which have been denied access to natural gas in the past, by establishing a network of micro-liquefaction stations and delivery via “virtual gas pipeline” providing tremendous economic and environmental benefits for them. Our technology makes it possible to overcome traditional obstacles to LNG penetration throughout the territory. This energy transition to LNG would reduce fuel supply costs for local businesses while also greatly reducing GHG and particulate matter emissions,” noted Stéphane Boyer.

About DGSC
DGSC is a Montreal-based limited partnership founded in 2017. DGSC offers innovative liquefied natural gas (LNG) and compressed natural gas (CNG) supply solutions throughout Quebec and Canada. DGSC comprises three major companies:

– Hydromega, an independent electricity producer founded and based in Montreal since 1987.
– Groupe Desgagnés Inc., headquartered in Quebec City, one of the province’s largest maritime transport companies.
– Gas Fueling Company Canada (GFCC), a Canadian entity founded by Galileo Advanced Solutions, a North American developer of integrated LNG/CNG supply chain solutions for Galileo Technologies, a leading manufacturer of natural gas compression and liquefaction equipment for more than thirty years.

Source and information
Stéphane Boyer Chief Executive Officer
DGSC – Distributed Gas Solutions Canada / Solutions de Gaz Décentralisées Canada
Tel.: 514 392-9266 ext. 134
sboyer@hydromega.com