Ontario-based natural gas distributor Union Gas has issued a non-binding call for expressions of interest in a proposed new natural gas liquefaction service at its Hagar Liquefied Natural Gas (LNG) facility near Sudbury, Ontario. The liquefaction service would be available as early as the third quarter of 2015 for customers seeking to use LNG as a transportation fuel.
“This new service will promote and facilitate the widespread usage of clean, affordable LNG in Ontario,” said Dave Simpson, vice president of infranchise sales and marketing and customer care at Union Gas. “We are excited about the opportunity that LNG presents for enhancing competitiveness in this province while contributing to a cleaner environment.”
Interested parties will supply the natural gas commodity to Union Gas at either the Dawn Hub (plus transportation), or at the Hagar plant and pay a liquefaction service fee. Union Gas will in turn deliver LNG to the customer Freight on Board (FOB) at the Hagar LNG plant. The liquefaction fee, which is subject to Ontario Energy Board approval, is expected to be in the range of $5.54-$6.93 CAD/GJ (about $0.20-0.25 CAD/Diesel Litre Equivalent), depending on the term. (USD: 5.07-6.34, 0.18-0.23)
LNG is natural gas that is cooled to -162°C, exponentially shrinking its original volume and making it an ideal energy-dense fuel for long-haul transportation and high horse power engines. LNG also offers significant environmental and economic advantages, costing up to 40 per cent less and producing up to 28 per cent fewer emissions than diesel or gasoline.
For more information or to reply to this request go to LNG Expression of Interest.
(Source: Union Gas)