Thus far, B.C.’s burgeoning liquefied natural gas industry has been focused on one destination for its LNG exports: energy-hungry Asian countries.
But a new joint venture agreement between Calgary-based Ferus Natural Gas Fuels and ENN Canada Corp., a subsidiary of Chinese natural gas distributors ENN Group, plans to sell LNG to the domestic transportation industry.
Dick Brown, chief executive officer of Ferus Natural Gas Fuels, told Business in Vancouver that the “high horsepower” sectors – trucking, rail and marine vessels – are targets for LNG sales, as are oil and gas exploration and mining.
“We are anticipating a greater adoption of LNG for fuel,” said Brown. “The bottleneck preventing that adoption right now is the supply infrastructure.”
The companies plan to build and operate two liquefaction plants, one in the Lower Mainland and one in Edmonton, Alberta. Ferus, which has an 80% stake in the joint venture, will design, build and manage the facilities.
ENN Canada, holder of the remaining 20%, will buy the LNG produced and sell it at fuelling stations. ENN Canada, under the brand BLU, plans to open three LNG fueling stations in B.C. by year’s end. ENN currently operates more than 150 LNG fuelling stations in China and the U.S.
Brown said that the Lower Mainland site will be located near an existing natural gas pipeline to keep connection costs down.
Construction of both facilities will happen simultaneously, with production expected in 2016’s first quarter. The plants will have a capacity of nearly 380,000 litres of LNG per day.
Brown said he expects LNG to eventually replace diesel because it burns cleaner and costs less.
FortisBC is already in the business of supplying LNG to the transportation industry. Its plant in Delta has been liquefying natural gas since 1971. One of its customers, Vedder Transport, which transports milk and agricultural products, runs about 50 trucks on LNG.
