Ferus Natural Gas Fuels announced it has completed the purchase of Encana Corporation’s 50% interest in the Elmworth, Alberta 190,000-litre per day liquefied natural gas ("LNG") production facility, retaining key Encana technical and management personnel.
Phase one of the Elmworth LNG facility, which was constructed as a 50/50 joint venture partnership between Ferus NGF and Encana, will be operational in May 2014. It is strategically located in close proximity to the active Alberta-BC Deep Basin oil and gas region and will produce LNG fuel for use in drilling rigs, pressure pumping services, and heavy-duty trucks. Other high horsepower applications for this LNG supply include rail, mining, and remote power generation.
"Our experience with LNG has demonstrated significant cost savings and environmental benefits. Encana remains a key customer of Ferus and has committed to a multi-year LNG supply agreement to service our field operations," said David Hill, Encana’s Executive Vice President, Exploration & Business Development. Selling our interest in the Plant allows us to focus on our core business and the execution of our new strategy."
Richard Brown, President and CEO of Ferus NGF said, "We are pleased to continue working closely with Encana as we jointly lead the adoption of LNG fuel by the western Canadian oil and gas industry. In addition to Encana’s commitment to using LNG fuel, we are adding experienced Encana personnel to our team to ensure a seamless transition and exceptional service to our customers in the region."
As a result of this transaction, Ferus NGF is the 100 percent owner/operator of the newest and largest merchant LNG plant in Canada and has significant plans to expand beyond that. Ferus NGF is focused on supplying domestically produced LNG and CNG fuel, which provides cost savings and environmental advantages to the oil and gas, trucking, mining, rail, marine and remote power generation markets.