HEYCO Energy Group has executed a letter of intent with IPC (USA) Inc. for 150 000 gallons per day of liquefied natural gas (LNG), equivalent to HEYCO’s entire first stage of production. The plant is located in Lavaca County, Texas, and should commence production by the end of the year.
HEYCO CEO, George Yates, commented: “We are extremely excited to be partnering with a major wholesale fuel supplier. IPC has intimate knowledge of the fuel distribution requirements of the E&P sector in South Texas, and has the foresight to expand their line of fuels to include cleaner, more affordable LNG.”
Dual fuel supply options
IPC will offer dual fuel supply options of both LNG and ultra low sulfur diesel (ULSD) to its customers in the Eagle Ford basin. IPC supplies gasoline, diesel, jet fuel, and other refined petroleum products to customers including distributors, retail stations, trucking companies and industrial end-users. The company has contracts with over 60 suppliers across the US.
IPC CEO, Oscar Okinaga, commented: “Our customers are looking for LNG fuel supply solutions today, and our relationship with HEYCO will provide us with long-term, high-quality LNG to meet that need. By combining our fuel supply expertise and HEYCO’s long-standing relationships in the E&P sector, we expect to be a significant player in the domestic LNG market, starting in South Texas.”
Energy sector facility
Last year HEYCO announced that it will install the first LNG facility dedicated to the energy sector and the Southern Gulf Coast. First stage production capacity at the facility will be 150 000 gallons per day, which can increase to 300 000 gallons per day within six to eight months as demand dictates.
Under the letter of intent, IPC will have exclusive use of HEYCO’s first-stage LNG capacity, with additional rights to the company’s expansion capacity.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/small-scale-lng/06022014/heyco_and_ipc_to_distribute_lng_129/