PSE, Totem Ocean sign LNG supply deal

Puget Sound Energy and Totem Ocean have signed a contract for PSE to provide LNG to fuel Totem Ocean’s two Tacoma, Washington-based Orca-class cargo ships.

PSE will provide Totem Ocean with fuel for their ships that are being converted from diesel to cleaner-burning LNG. Using LNG will allow Totem Ocean to exceed new, stricter emission standards in the maritime shipping industry, PSE said in a statement.

PSE is working to develop a new LNG production and storage facility at the Port of Tacoma to ensure continued dependable natural gas service for the company’s 760,000 residential and commercial natural gas customers by providing additional gas supply during times of peak demand.

The facility will also meet the LNG supply needs of Totem Ocean and other potential transportation customers. A property lease with the Port of Tacoma was approved in August 2014 and environmental review of the proposed facility has begun. Construction is expected to take about three years once all agreements are finalized and permits have been obtained.

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LNG World News Staff; Image: Totem Ocean