Union Gas Seeks Expressions of Interest in New LNG Service

Union Gas Seeks Expressions of Interest in New LNG Service

Union Gas announced 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.

Press Release, February 19, 2014; Image: Union Gas

Union Gas today announced 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.

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.

“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.

The expression of interest runs from Feb. 18, 2014, through March 7, 2014. For more information, visit uniongas.com/openseason. Once all expressions of interest have been received, Union Gas will determine the feasibility of the service and contact all interested parties directly.

– See more at: https://www.uniongas.com/newsroom/2014/Feb-18-2014#sthash.EEC88FZD.dpuf

Union Gas today announced 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.

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.

“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.

The expression of interest runs from Feb. 18, 2014, through March 7, 2014. For more information, visit uniongas.com/openseason. Once all expressions of interest have been received, Union Gas will determine the feasibility of the service and contact all interested parties directly.

– See more at: https://www.uniongas.com/newsroom/2014/Feb-18-2014#sthash.EEC88FZD.dpuf