Heating fuel stockpiling begins

BOSTON, Aug. 13 (UPI) -- The North American subsidiary of GDF Suez said it was buying liquid natural gas from a Montreal company to address upcoming demand in New England.

"Additional and reliable supplies such as these will also allow us to cost effectively provide more services to the marketplace by optimizing existing natural gas infrastructure in the region," Frank Katulak, president and chief executive officer of GDF Suez Gas North America, said in a statement Tuesday.

The company said it reached an agreement to buy up to 1 billion cubic feet of LNG from Gaz Metro LNG of Montreal to help meet peak demand for the region's upcoming winter heating season.

LNG will be sent to the region by truck to gas storage facilities that would store the fuel through the fall.

Last year's severe winter left some consumers across much of the eastern portion of North America short on heating fuel supplies.

Katulak said this is his company's second such deal with Gaz Metro and ensures market reliability for the winter heating season in New England.