Ferus, ENN form joint venture to build LNG liquefaction plants

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CALGARY, Alta. — Ferus Natural Gas Fuels and ENN Canada have created a joint venture that will see them own and operate together two liquefied natural gas (LNG) liquefaction plans in Canada.

The plants will be located in Vancouver, B.C. and Edmonton, Alta. and will service the on-highway truck market as well as other high-horsepower applications, the companies announced today.

“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.”

Ferus brings to the table specialties in building and operating cryogenic and micro-LNG plants and distribution equipment, while ENN is developing LNG fuelling infrastructure throughout Canada.

“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 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 two facilities will be able to produce 100,000 gallons of LNG per day, with the ability to expand as demand grows. Site selection will occur within the next six months, the companies say. LNG production is expected to begin in early 2016. Ferus will design, engineer and operate the facilities, while ENN has committed to buying the fuel for distribution through its fuelling stations.

“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.”

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