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Pivotal, WesPac in LNG supply agreement with TOTE

LNG Industry,


Pivotal LNG, Inc., a wholly owned subsidiary of AGL Resources Inc., and WesPac Midstream have signed a long-term agreement with TOTE, Inc. to provide LNG to fuel TOTE’s two new containerships.

Pivotal LNG and WesPac are addressing the growing demand for LNG in the southeast US by constructing a new natural gas liquefaction facility in Jacksonville, Florida.

Liquefaction facility

To date, the land has been purchased, the engineering and permitting process is advancing, and the new Jacksonville LNG facility is expected to be operational in mid-2016. The Jacksonville site provides the capability to add additional natural gas liquefaction and LNG storage capacity in the future in order to supply other customers in Jacksonville and regional markets.

Commenting on the agreement, Steve Cittadine, Pivotal LNG President, said: “This announcement marks the beginning of long-term, sustainable relationships that support the growth of LNG as a clean alternate fuel in and around the Jacksonville area.

“The combination of this new LNG facility in Jacksonville and our existing portfolio of LNG assets positions us well to serve the fueling needs of our current and future customers in the southeast, Puerto Rico, the US Virgin Islands and potentially the broader Caribbean market.”

Marine fuel

Dave Smith, President of WesPac, added: “With this landmark agreement, WesPac has secured property in Jacksonville for the construction of the first LNG liquefaction facility supplying marine fuel in North America. Together with our partners Pivotal LNG and TOTE, we’ve effectively established LNG as the fuel of the future for marine vessels in the US. We look forward to the completion of the project and expanding the facility going forward as more markets transition to clean LNG fuel.”

TOTE’s new dual-fuel Marlin-class containerships are expected to be delivered to Jacksonville in late 2015 and early 2016 and will operate between Jacksonville and Puerto Rico. Both ships surpass the requirements of the US Environmental Protection Agency’s clean air regulations.

Jacksonville to Puerto Rico

Anthony Chiarello, President and CEO of TOTE, explained: “It’s an exciting time for TOTE, WesPac, Pivotal LNG and the Puerto Rico trade. The new Marlin class vessels that will enter service in late 2015 are the first LNG powered containerships in the world. This significant investment in the trade, the environment and in Jones Act vessels will create a long-lasting, positive impact in Jacksonville and Puerto Rico.”

Brian Taylor, CEO of the Jacksonville Port Authority (JAXPORT), concluded: “Ports and regions that embrace the LNG opportunities before us stand to gain the most in terms of jobs, economic growth and business connectivity with communities around the world. This important agreement solidifies Northeast Florida’s place as a pioneer in the commercial benefits of LNG, thanks to groundbreaking decisions by our long-time port customers, and the innovative spirit of the business and political leadership in our region.”


Adapted from press release by Katie Woodward

Read the article online at: https://www.lngindustry.com/lng-shipping/07012015/pivotal-and-wespac-supply-lng-to-tote-18/


 

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