Ferus Assumes Encana’s Stake in LNG Joint Venture

Ferus Natural Gas Fuels Inc. (Ferus NGF) has completed its purchase of Encana Corp.'s 50% interest in the Elmworth liquefied natural gas (LNG) production facility in Alberta, Canada.

The plant, which produces about 50,000 gallons of LNG per day, was constructed as a 50/50 joint venture partnership between Ferus and Encana. As a result of the transaction, Ferus NGF is the 100% owner/operator of what the company says is the newest and largest merchant LNG plant in Canada.

The facility, located in close proximity to the active Alberta-British Columbia Deep Basin oil and gas region, will produce LNG fuel for use in drilling rigs, pressure pumping services and heavy-duty trucks. Other high-horsepower applications will include rail, mining and remote power generation.

“Encana remains a key customer of Ferus and has committed to a multiyear LNG supply agreement to service our field operations,’ says David Hill, Encana's executive vice president of exploration and business development. “Selling our interest in the plant allows us to focus on our core business and the execution of our new strategy.’

Phase one of the facility will be operational in May.

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