Ferus NGF acquires stake in Canadian LNG plant

Ferus Natural Gas Fuels (NGF) has acquired a 50% stake in an Alberta liquefied natural gas (LNG) production facility in Canada from its joint venture (JV) partner Encana.

The facility will produce LNG fuel for use in drilling rigs, pressure pumping services and heavy duty trucks operating in Western Canada’s Deep Basin oil and gas region. The first phase of the Elmworth LNG plant is scheduled to be operational in May.

Encana executive vice president of exploration and business development David Hill said that the company’s experience with LNG has demonstrated significant cost savings and environmental benefits.

"Encana remains a key customer of Ferus and has committed to a multi-year LNG supply agreement to service our field operations," Hill added.

"Selling our interest in the plant allows us to focus on our core business and the execution of our new strategy."

Ferus NGF said that it will add Encana personnel to its team and work with the company to jointly lead the adoption of LNG fuel by the western Canadian oil and gas industry.

Ferus NGF formed a JV with Encana in December 2012 to construct the 190,000l/day LNG plant in Elmworth. The transaction allows Ferus NGF to become the 100% owner and operator of the new LNG plant in Canada. The company offers LNG and compressed natural gas fueling services including production, transportation and storage.