LIQUEFIED NATURAL GAS (LNG)
A major project supporting several government strategies:
- Maritime Strategy: employment of local shipyards and implementation of a service linking the Gaspésie region to the North Shore;
- Plan Nord: provision of a cheaper and cleaner fuel than diesel;
- Reduction of greenhouse gases;
- Regional economic development using local resources for the benefit of the local economy.
Concept “Just in Time”
The '' Just in Time '' LNG delivery approach from TUGLIQ is the result of three years of work and optimization. The goal is to provide the best possible price for natural gas delivered to the Côte-Nord and Nord du Quebec regions, as requested by these regions for several years in order to diversify their economies.
The vertically integrated supply chain starts at the gas extraction well in Gaspésie (Bourque), to arrive at the customers in gaseous form. The molecule is liquefied as close to the source as possible in a floating installation, to then be transported by sea to the client terminals. The last step is the ground transportation (where applicable), from LNG terminal to the regasification and customer consumption on site.
The equation of short distances between Gaspésie and the North Shore, coupled with a floating liquefaction plant, enables TUGLIQ to offer a more economical, cleaner, and safer, LNG supply solution compared to the diesel currently used.
Optimal LNG shipping
- Scalability and modularity at every stage of the supply chain
- Proximity Model: short distance between the gas source and clients, to minimize shipping costs, while increasing the frequency and reliability of the gas supply
- Optimization of storage facilities compared to the Norwegian or conventional models
Proximity and exclusivity of the gas resource
TUGLIQ has developed a unique and exclusive partnership with Pétrolia, a Quebec Oil and Gas company, to develop the latter’s natural gas resource at Bourque, in Gaspésie. Being conventional natural gas reservoirs, these fields are the only Quebec gas resources available for short and medium-term production.
The Quebec government is a co-investor and partner in the confirmation and exploration of gas resources at the base of the supply chain proposed by TUGLIQ.
A partnership of proximity:
- Only project offering gas supply originating locally, from Quebec;
- Support from Gaspé and North Shore municipalities, as well as from Quebec’s mining industries;
- Local investments and ownership, funnelling dividends and interests back into Quebec’s economy.
TUGLIQ innovates by taking advantage of an emerging trend in liquefaction systems: platforms / floating liquefaction facilities. Already being deployed within the Douglas Channel project in British Columbia, this trend provides a better control of construction costs and liquefaction facilities (built in a controlled environment, drydock or shipyard) and Operation of the system.
Floating liquefaction advantages:
- Replacement of polluting fossil fuels (diesel or heavy fuel oil) by a cleaner fuel, offering up to 30% GHG emission reduction;
- The use of a locally produced and locally delivered gas ensures the smallest carbon footprint (smaller distance transportation both by pipelines or ships).
- Environmental risks reduced compared to diesel and heavy fuel oil: risks of oil spill at sea and on earth eliminated through LNG.
Low cost of storage and shipping
Cryogenic storage is one of the largest contributors to the increase in the cost of LNG supply chains. Reducing storage to a minimum is therefore essential to achieving better prices, better use of capital and a more efficient operations. The 'Just in Time' ' LNG delivery and short distance between the Gaspé and customers will significantly reduce transportation costs and allow optimization and reduction of LNG storage.
A "customized" approach is used to optimize the cost of the LNG delivered to each client according to the particular characteristics of each. Storage volumes are adapted to each client and multi-client synergies are analysed throughout the chain in order to reduce costs as much as possible.
The regasification is done by vaporisation whose capacity is defined according to the site. The harsh climate of our customers require the selection of equipment capable of operating in extreme environments without disruption.
Result: capital investment and operating costs will be reduced, thus significantly reducing the price of LNG delivered to customers.