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Pivotal LNG to deliver LNG to Carib

LNG Industry,

Pivotal LNG, a subsidiary of AGL Resources, has announced a long-term agreement to sell liquefied natural gas (LNG) to Crowley Maritime Corp. subsidiary Carib Energy LLC, for use by Carib's customers in Puerto Rico.

Commenting on the agreement, Pivotal President, Stephen Cittadine stated: "We are pleased to work with Crowley to support industries in Puerto Rico with the delivery of cost-effective, emission-reducing LNG. Pivotal continues to expand its LNG portfolio, thereby reducing dependency on other petroleum products used by Puerto Rico as well as other US territories."

FERC clarity

The Federal Energy Regulatory Commission (FERC) recently issued an order providing clarity to Pivotal regarding the use of non-pipeline modes of transportation for delivery of LNG from the US mainland to US territories without becoming subject to FERC's jurisdiction.

The FERC order confirms that Pivotal can sell LNG designated to be transported by waterborne vessel to all US territories subject to the order's conditions. To make this possible, Pivotal will load LNG onto international shipping organization (ISO) containers. The ISO containers will then be transported via truck to Crowley's waterborne vessels in Jacksonville, Florida, and then delivered to Carib's customers in Puerto Rico.

LNG in Puerto Rico

"Pivotal is a proven leader in supplying LNG to the eastern United States, and we are certainly pleased to have them provide LNG for our markets in Puerto Rico," added Crowley VP, Greg Buffington. "Our LNG supply agreement with Pivotal, coupled with Crowley's recent success of obtaining a small-scale export license from the Department of Energy, allows us to meet the current and future energy needs of our customers in the regions where we do business."

Adapted from press release by Katie Woodward

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