Joint venture to develop infrastructure for LNG as vehicle fuel

The liquefied natural gas industry is still in its infancy in Canada, but in the latest development in that industry, two companies, one Chinese the other Canadian, have reached a deal to build and operate two liquefaction plants in Canada, one in British Columbia, the other in Alberta. The LNG will be used as fuel in the trucking industry, as well as in marine, rail, mining and oil and gas exploration.

Ferus Natural Gas Fuels of Calgary and ENN Canada, a subsidiary of the Chinese company ENN Group, will build the facilities, which will each produce 370,000 litres (100,000 gallons) of LNG per day, beginning in 2016. The joint venture addresses what Ferus CEO Dick Brown called a major challenge in the development of the LNG market in this country, lack of infrastructure.

natural-gas-fuelling-station-LNG-Canada-Alberta-BC-exports-shale-oil-EDIWeekly

“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,” said Brown. “These two LNG liquefaction plants, along with the specialized 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.”

The chief benefits of using LNG as a vehicle fuel are cost savings and reduced greenhouse gas emissions. According to the CEO of ENN Canada, Henry Caj, the cost savings to the end user of LNG are “30 to 40 per cent,” while it contributes “up to” a 25 per cent reduction in greenhouse gas.

The company has plans, it is reported, to build chains of LNG fueling stations across North America.

China’s CNOOC, meanwhile, which last year acquired Nexen Inc. of Calgary, has secured the rights to a parcel of land in British Columbia where it plans to build an export terminal for LNG. The Chinese company has teamed with Japan’s Inpex Corp. and JGC Corp. to build the facility, which CNOOC says is the best way it can maximize the value of its Canadian shale business. The company owns 300,000 acres of shale gas deposits in BC.

Other international oil companies, including Petronas of Malaysia, are also interested in building LNG facilities in BC. According to one report, there are no less than fourteen groups vying for space on BC’s coast. Others include Shell, Chevron, Exxon and Sinopec.

The first commercial fuelling station with LNG opened in Quebec in 2011 as part of a pilot project to create an LNG-fuelled corridor between Quebec City and Toronto.

Did you miss this?

Other Popular Stories

  • SpaceX Mars Exploration By 2019? Maybe not.
  • Manufacturing sales up in November, government scraps duties on imported food ingredients
  • Giant wind-solar development announces SMA Canada for O&M
  • Truckers hopeful about progress on border security, emissions, after Washington summit
  • Elon Musk, the master of disruptive technology companies: his life, successes — and failures
  • Pros and Cons of EDM: What is electrical discharge machining, and how does it work?
  • Strong manufacturing output lifts GDP in October
  • Windsor-Detroit bridge can proceed as final obstacles fall
  • Nuclear industry makes do with refurbishment as new plants cancelled
  • SNC's Candu Energy signs international agreements
  • Danger Doc Robinson: researchers at RMIT University find vehicle vibrations may induce sleep in drivers
  • Canadian work in composite materials honoured with innovation awards
  • Too much wind-power may warm the environment more than oil or coal — at least in the short term. Harvard research suggests cautious planning needed
  • Renewable energy now costs less than fossil fuels in some countries: report
  • $ Trillions needed to decarbonise global energy supply to meet Paris Agreement targets
  • Labour groups welcome interim report on precarious workers in Ontario
  • Seven electric vehicle trends for 2020 — forecasts, technology, solar and autonomous driving
  • Ontario economy set to grow based on exports, weaker dollar
  • SpaceX’s Falcon 9 Ripped Hole in Ionosphere During 2017 Launch
  • Women wanted in construction trades as "tremendous opportunity" exists
Scroll to Top