Output for Deep Basin E&P, Mines and Trains and Trucks Too
Encana and Ferus LNG say they’ll build a liquefied natural gas fuel plant in Western Canada, emphasizing the E&P operations market but promising fuel for mines, trains and trucks from a 50,000-gallon-per-day facility near Grande Prairie, Alb. Encana and other E&Ps operate wells in the Deep Basin there.
Start-up is slated for late 2013. The joint venture facility, some 290 miles northwest of Edmonton, “is strategically located in close proximity to high levels of energy industry activity in northwestern Alberta and northeastern British Columbia,” the partners say.
It “will be among the first in Canada designed to produce high-quality LNG fuel specifically for high-horsepower engines used in drilling rigs, pressure pumping services, and heavy-duty highway and off-road trucks.”
Storage & Dispensing Gear Too
Rail, mining, and remote power generation are among the additional stated markets.
“To support the entire LNG supply chain, Encana and Ferus LNG have also designed and are in the process of building specialized mobile storage and dispensing equipment,” states a release.
“Announcing a plant is only part of the solution,” says Encana VP David Hill. “Without dispensing and distribution equipment, there is no market,” he told HHP Insight.
“LNG is quickly becoming the fuel of choice for HHP engines in both highway and off-road applications in North America,” Encana U.S. executive VP Eric Marsh said in a release. “This project demonstrates the increasing viability of LNG as a fuel alternative for a wide range of industries.
“With this new LNG plant, Encana and Ferus LNG are meeting a growing market demand by helping diesel consumers in northern and western Canada make the switch to cleaner-burning natural gas to both save costs and reduce their emissions,” Marsh said.
This joint venture project is said to be “unique… it brings together two experienced and complementary parties who, in addition to enabling their business partners and customers to switch to LNG, have committed to using the fuel for their own internal consumption.
Ferus Fuel for Eagle Ford Fracking
“In 2011 alone, Encana saved $12 million in fuel costs by using natural gas instead of diesel in drilling rigs and company trucks and is on track to exceed this figure in 2012.”
Ferus boasts the first two LNG tractors in Alberta, and “we plan to convert our entire truck fleet over the next five years,” said president and CEO Richard Brown. “We are very pleased to be working with Encana to help develop the natural gas engine market by ensuring fuel supply and operating the necessary equipment to safely and reliably get the product to our customers’ site.”
Ferus late last month publicized its role in supplying LNG to a fracking-hydraulic fracturing site as part of a pioneering project in the in the South Texas Eagle Ford shale.
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Source: Encana-Ferus release with Fleets & Fuels follow-up