Regional LNG is on the Up in North America
02.10.2020 - NEWS

February 10, 2020 [Tank News International] – While it may not command as many global headlines, smaller-scale regional LNG in North America is growing rapidly. There are now at least five operations, four fixed facilities in various stages of commercialisation, and one using truck-mounted Cryobox liquefaction units to monetise stranded gas.

Fortis, a tenured small-scale operation, has been shipping LNG in tank containers to China since late 2017. Meanwhile in Jacksonville, Jax LNG recently went into operation, with 15 million cubic feet per day at the inlet. Jax is a partnership of Pivotal LNG, a wholly owned subsidiary of Southern Company Gas, and NorthStar Midstream. NorthStar is backed by Oaktree Capital Management, and Clean Marine Energy.

The neighbouring £379 million Jacksonville Eagle operation has two LNG operations going: ISO-tank loading and a ship bunkering and it is also said to be approaching a final investment decision for an LNG export facility.

Dominion Energy (the major midstream and utility company) began construction late in 2019 on modular LNG project in north central Pennsylvania, which is a joint venture with Rev LNG called Niche LNG, positioned near Edge’s latest installation, which is the most recent development of note – Edge Gathering Virtual Pipelines signed a new development deal with one of the largest producers to station Cryobox in the Marcellus. 

Mark Casaday, CEO of Edge, said the new deal is the firm’s second in the Marcellus and it is “actively pursuing similar projects in the Bakken and Permian” where the flaring of stranded gas has become a serious problem for the industry.

Edge has not been allowed to name its Marcellus client, but Casaday said the initial installation is for two Cryoboxes (which it purchases directly from manufacturer Galileo Global Technologies) in Tioga County. Each unit takes 1 million cubic feet a day of gas at the inlet and loads 75 per cent of it into the tank, (the balance is used as fuel). The output is between 9,000 and 10,000 gallons of LNG.  

Galileo is a shareholder, along with specialist international private equity firm, Blue Water Energy. Edge also has an agreement with NextEra Energy Marketing as exclusive sales and marketing partner in the US. NextEra is a subsidiary of the eponymous energy group, which claims primacy as the world’s largest utility company.

At the new installations in the Marcellus, Edge will purchase the LNG from the producer to deliver via its truck-based virtual pipeline to existing customers in the region. The company has also signed a deal to supply LNG to the City of Norwich, Connecticut which will be used to provide natural gas to homes and businesses.

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