Ferus Natural Gas Fuels and ENN Canada Corporation yesterday announced a joint venture to construct, own and operate two liquefied natural gas (LNG) liquefaction plants in Canada. The plants will be strategically located in Vancouver, British Columbia, and Edmonton, Alberta, to service the on-road trucking market as well as other high-horsepower applications including marine, rail, mining, and oil and gas exploration.
LNG fuelling benefits
“The benefits of fuelling with natural gas are significant”, said Henry Cai, CEO of ENN Canada. “Natural gas over diesel represents a 30 - 40% cost savings to the end-user and contributes up to a 25% reduction in greenhouse gas emissions.”
Alberta’s energy minister, Ken Hughes, said: "These projects will help build the market for clean burning natural gas as a transportation fuel. It is another step on the road to finding new uses and new markets for our abundant natural gas resources here and in British Columbia.”
The partnership brings together two major players in the North American natural gas fuelling market. Ferus Natural Gas Fuels specialises in building and operating cryogenic and micro-LNG plants and distribution equipment, and ENN Canada, which is developing LNG refuelling infrastructure across the country, brings expertise in the construction and operation of LNG/LCNG stations and provides assistance in the acquisition and transition to natural gas vehicles.
Challenges
Dick Brown, CEO of Ferus Natural Gas Fuels, said that a lack of infrastructure in the LNG fuelling market presents a crucial challenge. “In order for our customers to make the switch to natural gas, they need certainty of an uninterrupted supply of LNG to fuel their equipment. These two LNG liquefaction plants, along with the specialised distribution equipment and planned retail fuelling stations, will ensure that supply.” This, in turn, he stressed, “will promote and facilitate the widespread usage of LNG in Western Canada.”
Both facilities will initially be built to produce 100 000 US g/d of LNG, with the ability to expand as demand grows. Site selection will be determined within six months, and construction will be initiated immediately afterward. First product is expected in early 2016.
As Operator, Ferus Natural Gas Fuels is responsible for the design, engineering, construction, operation, and marketing and sales of both facilities. ENN Canada has committed to a significant amount of the LNG produced at these plants for its planned fuelling stations.
Adapted from press release by Ted Monroe