Canadian LNG distributor Cryopeak LNG Solutions has commenced construction on new liquefied natural gas (LNG) production facility in Canada.

Located in Fort Nelson, British Columbia, the project is capable of producing approximately 90,000 gallons of LNG per day.

Claimed to be the first fully funded and permitted LNG production facility in the Fort Nelson area, the plant will serve as the closest LNG production point to northern Canada and portions of Alaska.

Cryopeak LNG said that the facility includes a new truck loading system which improves the loading of fleet of LNG Super-B tankers.

The firm has selected CryoSys to supply the liquefaction equipment which are required to produce the LNG in the new facility.

CryoSys president Neil Karr said: “We are delighted to have been awarded this contract to deliver the liquefaction package to Cryopeak’s LNG facility in Northern BC.

“Our highly efficient optimized mixed refrigerant process and our ability to package the modular liquefaction plant in our workshop allows us to provide the lowest installation and operating costs for a small-scale LNG plant in the LNG marketplace.The equipment will be delivered to Cryopeak in early summer.”

Cryopeak is partnering with Fort Nelson First Nations

According to Cryopeak LNG, the project, which marks as an important breakthrough for energy supply to Northern Canada, is expected to allow the communities and remote industries to secure a low cost and a more environmentally sustainable fuel source.

The project is expected to create opportunities for local construction workers, service companies, and operations personnel during the construction and for the distribution of LNG to Northern Canada from a new transportation hub which is situated within the municipality of Fort Nelson.

To develop business opportunities that are associated with the project, Cryopeak is partnering with Fort Nelson First Nations.

Recently, Cryopeak LNG has completed the North American delivery of LNG by truck to power the Silvertip mine on the Yukon/BC border owned by Coeur Silvertip.