LNG Logistics Startup Formed

Stolt-Nielsen Gas (SNG), SunLNG Holding (SunLNG) and LNGaz have teamed up to provide natural gas to remote mining operations and other industrial customers in northeast Canada at a lower cost than diesel and residual fuel oil, which are the primary energy sources today.

The new startup company will focus on the development of small-scale liquified natural gas (LNG) liquefaction and logistics services in Bécancour, Québec, Canada. The joint venture, Stolt LNGaz Ltd., will have a Canadian operating subsidiary, Stolt LNGaz Inc. The transaction represents an initial investment of $20 million with SNG owning 50 percent of the venture.

The companies say gas delivered via existing pipelines terminating in southeast Canada will be liquefied at a small-scale plant to be constructed by Stolt LNGaz. The fuel will then be transported primarily via LNG carriers to a number of customers and hubs across northeast Canada. SNG expects cost advantages to enable surplus production to be exported to northern Europe.

Late last year, Shell, General Electric and Clean Energy Fuels announced plans to begin construction on the US’ first fuel station for LNG-fueled cargo ships in Jacksonville, Fla. GE said the US will need between 50 and 100 small-scale LNG plants for ships, trains, mining and trucks by 2025. Each plant is expected to cost $50 million to $150 million.