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Colony Energy LNG in Reno, Nevada

January 27, 2014 in LNG by Rich Piellisch  |  No Comments

Initial Permits Secured for $50 Million Production Facility
Output Mostly for High Horsepower, But Truck Stops Too

Southern California-based Colony Energy Partners reports initial approval to build a $50 million liquefied natural gas plant in Reno, Nevada. The facility is intended to support LNG-using railroads and mine vehicles, and ships operating in the San Francisco Bay. Output will be available for road vehicles too, says Colony development VP Matt Schmitt.

Colony Energy Partners map shows Reno location relative to existing LNG plants to the south.

Colony Energy Partners map shows Reno location relative to existing LNG plants to the south.

The company has received conditional use and air permits and is moving towards construction in the fourth quarter. Its TRI-Center Industrial Park (Tahoe-Reno) site is served by the 20-inch TransCanada owned Tuscarora interstate natural gas transmission pipeline with an existing interconnect – “assuring an ample and reliable source of high quality LNG feed gas.”

The northern Nevada site was chosen because of its proximity to the I-80 and transcontinental rail corridors, and to ships operating out of the San Francisco Bay Area and mining operations to the east, Colony says.

100,000 to 250,000 Gallons Daily to Start

“This facility will put Reno on the cutting edge of the move to clean-burning, less costly LNG,” Colony development VP Matt Schmitt said in a release.

“We’ve got ideal site,” he told F&F. “We’re set up to hit every high horsepower market, from ships to mining.” Colony also stands ready to supply truck stops with LNG fuel, he says.

Colony Energy estimates that the plant will have an initial capacity of 100,000 to 250,000 gallons of LNG per day, building to 900,000 gallons per day – about 3,400 cubic meters, or enough to “replace up to 3% of the diesel and bunker fuel currently refined in Northern California.”

The firm estimates that up to 30% of the current market could eventually switch to LNG.

A top priority now, Schmitt says, is to convince local authorities and citizens the LNG is safe. “It’s been used for decades with an impeccable safety record,” he says “You can’t say that about petroleum.”

Goal Is Mid-2016 Start-Up

“We’re targeting mid-2016 to start fuel deliveries,” Schmitt says.

Colony development partners include Terrada Warehouse and McNeil Capital for some $3.7 million for front-end engineering, and pre-construction development work, including land acquisition.

Also to lend a hand are Fresno, Calif.-based Lyles Construction and, for LNG process engineering, Bakersfield, Calif.-based Processes Unlimited International and CDS Research.

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Source: Colony Energy Partners with Fleets & Fuels follow-up

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