TORONTO (miningweekly.com) – A Chinese-owned liquefied natural gas (LNG) distributor on Tuesday revealed plans to build, own and operate two LNG liquefaction plants in Western Canada, strategically located to service the on-road trucking market and other high-horsepower applications, including marine, rail, mining, and oil and gas exploration.

ENN Canada – a subsidiary of ENN Group, one of the largest natural gas distributors in China – and private Calgary-based Ferus Natural Gas Fuels announced the deal in a joint news release, saying they planned to construct the facilities in Vancouver, British Columbia, and Edmonton, Alberta.

As operator, Ferus is responsible for the design, engineering, construction, operation, and marketing and sales of both facilities. ENN Canada had committed to a significant amount of the LNG produced at these plants for its planned fuelling stations. The company has plans to build chains of cryogenically cooled LNG fuelling stations across Canada and the US.

Both facilities will initially be built to produce 378 000 ℓ/d of LNG, with the ability to expand as demand grows.

Site selection would be determined within the next six months, and construction would start immediately afterward. First output was expected early in 2016.

"The benefits of fuelling with natural gas are significant. Natural gas over diesel represents a 30% to 40% cost savings to the end-user and contributes up to a 25% reduction in greenhouse gas emissions,” ENN Canada CEO Henry Cai said in a statement.

Alberta's Energy Minister, Ken Hughes, added that the joint venture represented another step on the road to finding new uses and new markets for Alberta’s abundant natural gas resources. "These projects will help build the market for clean burning natural gas as a transportation fuel.”

"In order for our customers to make the switch to natural gas, they need certainty of an uninterrupted supply of LNG to fuel their equipment. These two LNG liquefaction plants, along with the specialised distribution equipment and planned retail fuelling stations, will ensure that supply, which, in turn, will promote and facilitate the widespread usage of LNG in Western Canada,” Ferus CEO Dick Brown enthused.