Groundbreaking partnership represents the start of LNG adoption as a marine fuel in the United States
ATLANTA – Jan. 6, 2015 – Pivotal LNG, Inc. (Pivotal LNG), a wholly owned subsidiary of AGL Resources Inc. (NYSE: GAS), and WesPac Midstream LLC (WesPac) today announced they have signed a long-term agreement with TOTE, Inc. (TOTE) to provide liquefied natural gas (LNG) to fuel TOTE’s two new state-of-the-art containerships. Pivotal LNG and WesPac are addressing the growing demand for LNG in the southeast by constructing a new natural gas liquefaction facility in Jacksonville, Fla.
The land has been purchased, the engineering and permitting process is advancing, and the new Jacksonville LNG facility is expected to be operational in mid-2016. The Jacksonville site provides the capability to add additional natural gas liquefaction and LNG storage capacity in the future in order to supply other customers in Jacksonville and regional markets.
“This announcement marks the beginning of long-term, sustainable relationships that support the growth of LNG as a clean alternate fuel in and around the Jacksonville area,” said Steve Cittadine, president of Pivotal LNG. “The combination of this new LNG facility in Jacksonville and our existing portfolio of LNG assets positions us well to serve the fueling needs of our current and future customers in the southeast, Puerto Rico, the US Virgin Islands and potentially the broader Caribbean market.”
Dave Smith, president of WesPac commented, “With this landmark agreement, WesPac has secured property in Jacksonville for the construction of the first LNG liquefaction facility supplying marine fuel in North America. Together with our partners Pivotal LNG and TOTE, we’ve effectively established LNG as the fuel of the future for marine vessels in the US. We look forward to the completion of the project and expanding the facility going forward as more markets transition to cleaner-burning LNG fuel.”
TOTE’s new dual-fuel ‘Marlin-class’ containerships, the first in the world, are expected to be delivered to Jacksonville in late 2015 and early 2016 and will operate between Jacksonville and Puerto Rico. Operating these new LNG-powered containerships will result in significant emissions reductions, making them the most environmentally friendly ships in the world. Both ships, powered by dual-fuel LNG engines, greatly surpass the requirements of the U.S. Environmental Protection Agency’s clean air regulations.