Zeus: Twenty North American LNG Fuel Plants Proposed

Nearly five million gallons of daily liquefaction capacity has been proposed by 10 project developers, according to a survey by Zeus Development Corp., a Houston-based consultancy that covers natural gas. 

The proposed plants would raise LNG fuel production capacity in North America to nearly six million gallons per day (gpd, 3.6 million tonnes annually).

“At $600 per gallon per day of new capacity, these plants represent a capital investment of about $3 billion,” said Siyu Chen, Zeus LNG fuel analyst. “It shows the North American natural gas industry’s determination to fuel heavy-duty transportation.”

Proposed plant sizes range from 50,000 gpd at Grand Prarie, Alberta, proposed by Calgary-based Ferus, an oilfield services company, and Encana, one of America’s largest gas producers, to 500,000 gpd for plants proposed by Texas-based Waller Marine, which aims to supply LNG as bunker fuel.

Beaumont-based Stabilis Energy, an LNG investment holding company, has proposed the most plants. It announced plans earlier this year to work with Chart Industries to establish five facilities between 100,000 and 250,000 gpd. Other developers include Clean Energy Fuels, which has proposed three projects, two of which are slated to use GE Micro LNG plant designs. Each would liquefy nearly 25 million cubic feet of gas daily to produce 250,000 gpd.

In addition to new plants, developers are also expanding existing facilities. Applied Natural Gas Fuels and Clean Energy Fuels, for example, have announced plans to add new process trains in Topock Ariz., and Boron, Calif., respectively. Spectrum LNG has plans to build a second plant in Ehrenberg, Ariz, as well as new facilities in Prudhoe Bay, Alaska, and Tulsa, Okla. Survey results can be downloaded at www.zeusintel.com/lngshale/survey.

On Oct. 30, the industry will meet in Houston to discuss issues for siting these plants. At least seven projects will be presented. Participating companies include Apache, Black & Veatch, Caterpillar, Chart Industries, CHI Engineering, Cosmodyne, Cryoquip, Dresser-Rand, Ferus, HEYCO, Idaho National Laboratory, Kiewit Energy, Linde, Martin Energy, Noble Energy, Northstar, Pioneer, Plum Energy, Prometheus Energy, Spectrum, Stewart & Stevenson, Sumitomo, UOP, Vita and Weatherford.

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LNG World News Staff, September 13, 2013; Image: Clean Energy Fuels