Ferus Natural Gas Fuels and ENN Canada Corporation have announced a Joint Venture (JV) today to construct, own and operate two 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.
“The benefits of fueling 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.”
“These projects will help build the market for clean burning natural gas as a transportation fuel,” said Ken Hughes, Alberta’s Energy Minister. “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 fueling 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 refueling infrastructure across the country, brings expertise in the construction and operation of LNG/LCNG stations and provides assistance in acquiring and transitioning to natural gas vehicles.
“Lack of infrastructure is one of the major challenges associated with the development of the LNG fueling market,” said Dick Brown, CEO of Ferus Natural Gas Fuels. “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 fueling stations, will ensure that supply, which in turn will promote and facilitate the widespread usage of LNG in Western Canada.”
Both facilities will initially be built to produce 100,000 US gallons per day 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 early in 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 fueling stations.