Photo: Seven Generations Energy Ltd.

By Canadian Press

Seven Generations

Seven Generations signs deal with Quebec natural gas distributor

Feb 11, 2020 | 8:07 AM

CALGARY – Seven Generations Energy Ltd. 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.

The company, which holds it’s operational headquarters in Grande Prairie, 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 implementing the program will result in about $2 more per year on the bill of a typical residential customer.

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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.

(With files from Shaun Penner)