PSE and Totem Ocean pen LNG supply deal

Puget Sound Energy (PSE) and Totem Ocean Trailer Express (Totem Ocean) have signed a contract for PSE to provide LNG to fuel Totem Ocean’s two Tacoma, Washington-based Orca-class cargo ships.

PSE will provide Totem Ocean with fuel for their ships that are being converted from diesel to cleaner-burning LNG. Using LNG will allow Totem Ocean to exceed new, stricter emission standards in the maritime shipping industry.

PSE is working to develop a new LNG production and storage facility at the Port of Tacoma to ensure continued dependable natural gas service for the company’s 760 000 residential and commercial natural gas customers by providing additional gas supply during times of peak demand. 

The facility will also meet the LNG supply needs of Totem Ocean and other potential transportation customers. Construction of the facility is expected to take approximately three years once all agreements are finalised and permits have been obtained.

John Parrott, Totem Ocean President, said: "In order to reduce our environmental impact, Totem Ocean is converting its ships to operate on LNG and we are excited to be partnering with PSE […] new facility will provide vital new infrastructure making the use of LNG as a transportation fuel a reality in the Pacific Northwest."

In 2012, Totem Ocean announced plans to upgrade its two existing cargo vessels to run on LNG. This investment will help Totem Ocean lower its emissions to exceed the Environmental Protection Agency’s (EPA) new air emissions standards and improve air quality for the people and communities it serves.

Adapted from press release by Callum O'Reilly

Read the article online at: https://www.lngindustry.com/small-scale-lng/03112014/pse-and-totem-ocean-pen-lng-supply-deal-1712/