Encana, Ferus to build LNG fuelling plant

Encana Corporation and Ferus LNG said Monday they will build a 190,000 litre per day liquefied natural gas (LNG) plant near Grande Prairie to supply trucks and drilling rigs in that region.

Encana said the facility is expected to be operational by the end of 2013 and will be among the first in Canada to produce high-quality LNG fuel specifically for high-horsepower engines. A cost for the project was not released.

Encana already has a compressed natural gas (CNG) fuelling project at Strathmore and “we are just on the cusp of getting the LNG station going there,” said Encana spokesman Jay Averill.

Ferus LNG is privately held by the Energy & Minerals Group, a management company.

Ferus and Encana have also designed and are in the process of building specialized mobile storage and dispensing equipment. “LNG focus is long haul trucking and drilling rigs and we already have 38 per cent of our drilling rigs using natural gas. LNG is better for trucking to remote areas to power rigs and is best for highhorsepower engines in rigs, long haul trucks and rail units,” Averill said.

Encana has a test project with Canadian National Railway using LNG with a diesel unit that travels between Edmonton and Fort McMurray.

In 2011, Encana saved $12 million in fuel costs by using natural gas instead of diesel in drilling rigs and company trucks and the company is on track to exceed that figure in 2012.

“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,” said Eric Marsh, a senior Encana vicepresident of the USA Division.