KATE Energy, Ferus NGF ink LNG supply deal

Canadian privately held power producer, KATE Energy has signed an LNG supply deal with Ferus Natural Gas Fuels. 

Under the LNG off-take agreement, KATE Energy will secure liquefied natural gas volumes from the Dawson Creek LNG facility and will provide both KATE Energy and Ferus NGF clients, including Yukon Energy an LNG fuel solution delivered from Canada’s northernmost LNG facility.

Ferus NGF and Yukon Energy entered into a four-year contract for the supply and delivery of liquefied natural gas for power generation in Whitehorse, Yukon.

In effect since January 1, 2020, the contract was the result of a competitive tender process in the fall of 2019 that saw KATE Energy and Ferus NGF enter a “co-bid,” led by Ferus NGF, KATE Energy said in its statement.

“We believe this four-year agreement with Yukon Energy validates the ever-increasing need for remote communities and industrial operations to replace diesel and other distillates as power and heating fuels,” said Thomas Elwell, CEO of KATE Energy.

The Dawson Creek LNG facility is located approximately 75 kilometers southeast of St. John, British Columbia and has a nameplate production capacity of 27,000 gallons per day of LNG.