Ferus Natural Gas Fuels has completed the purchase of
Encana's 50% interest in the 190,000-liter/day LNG production
facility in Elmworth, Alberta, while also retaining key
Encana technical and management personnel.
Phase one of the Elmworth LNG facility, which was constructed
as a 50/50 joint venture partnership between Ferus NGF and
Encana, will be operational in May 2014. It is strategically
located in close proximity to the active Alberta-BC Deep
Basin oil and gas region and will produce LNG fuel for use in
drilling rigs, pressure pumping services, and heavy-duty
trucks. Other high horsepower applications for this LNG
supply include rail, mining, and remote power generation.
Our experience with LNG has demonstrated significant
cost savings and environment
al benefits. Encana
remains a key customer of Ferus and has committed to a
multi-year LNG supply agreement to service our field
operations, said David Hill, Encanas executive
vice president of exploration and business development.
"Selling our interest in the plant allows us to focus on our
core business and the execution of our new strategy.
As a result of this transaction, Ferus NGF is the 100%
owner/operator of the newest and largest merchant LNG plant
in Canada and has significant plans to expand beyond that.
Ferus NGF is focused on supplying domestically produced LNG
and CNG fuel, which provides cost savings and environment
al advantages to the
oil and gas, trucking, mining, rail, marine and remote power
"We are pleased to continue working closely with Encana as we
jointly lead the adoption of LNG fuel by the western Canadian
oil and gas industry," said Richard Brown, CEO of Ferus
NGF. "In addition to Encanas commitment to using LNG
fuel, we are adding experienced Encana personnel to our team
to ensure a seamless transition and exceptional service to
our customers in the region.