Ferus NGF acquires stake in Alberta LNG plant
Ferus Natural Gas Fuels has completed the purchase of Encana Corporation’s 50% stake in the Elmworth Alberta LNG production facility, retaining key Encana technical and management staff.
Elmworth LNG facility
Phase one of the 190 000 litre/d Elmworth LNG facility, which was constructed as a 50/50 joint venture partnership between Ferus NGF and Encana, will be operational in May 2014. It is located in close proximity to the active Alberta Deep Basin oil and gas region and will produce LNG fuel for use in drilling rigs, pressure pumping services, and heavy-duty trucks. The LNG will also be used for high horsepower applications in rail, mining and remote power generation.
Environmental benefits
"Our experience with LNG has demonstrated significant cost savings and environmental benefits. Encana remains a key customer of Ferus and has committed to a multi-year LNG supply agreement to service our field operations. Selling our interest in the Plant allows us to focus on our core business and the execution of our new strategy," commented David Hill, Encana's Executive Vice President, Exploration & Business Development.
LNG fuel
Richard Brown, CEO of Ferus NGF, added: "We are pleased to continue working closely with Encana as we jointly lead the adoption of LNG fuel by the western Canadian oil and gas industry. In addition to Encana's commitment to using LNG fuel, we are adding experienced Encana personnel to our team to ensure a seamless transition and exceptional service to our customers in the region."
Ferus NGF is now the 100% owner/operator of the largest merchant LNG plant in Canada and has significant plans to expand.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/25042014/ferus_acquires_alberta_lng_stake_475/
You might also like
EIA: US natural gas trade will continue to grow with the start-up of new LNG export projects
The U.S. Energy Information Administration’s recently released Short-Term Energy Outlook forecasts that US LNG exports will continue to lead growth in US natural gas trade as three LNG export projects currently under construction start operations and ramp up to full production by the end of 2025.
