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Work starts on Fort Nelson LNG facility

Work starts on Fort Nelson LNG facility

FORT NELSON, B.C.  – Work on a new LNG production facility in Fort Nelson, B.C. has begun, Cryopeak LNG Solutions Corporation announced.

The Richmond-based company added that when complete, the facility will be capable of producing up to 90,000 gallons of LNG per day. Cryopeak’s new LNG facility is the first fully funded and permitted LNG production facility in the Fort Nelson area.

The production facility will be the closest LNG production point to northern Canada and Alaska. A core feature of the plant design utilizes a new truck loading system that optimizes loading of Cryopeak’s fleet of LNG Super-B tankers. The plant will be built using modular design to reduce installation requirements at the site.

“We are excited to now have permits in hand and shovels in the ground,” said Calum McClure, CEO of Cryopeak, in a press release.

McClure noted that the project marks an important breakthrough for energy supply to Northern Canada as it allows communities and remote industries to secure a lower cost and a more environmentally sustainable fuel source.

Business opportunities for local construction workers, service companies, and operations personnel will become available for the construction of the facility, and for the distribution of LNG to Northern Canada from a new transportation hub, located within the municipality of Fort Nelson. Cryopeak is partnering with Fort Nelson First Nations to develop business opportunities associated with the project.

As the leading LNG provider in Yukon, BC and the Northwest Territories, and the turnkey developer of the project, Cryopeak has selected CryoSys, LLC for the liquefaction equipment to produce the LNG. 

“We are delighted to have been awarded this contract to deliver the liquefaction package to Cryopeak’s LNG facility in Northern BC,” said Neil Karr, president of CryoSys, in a press release. “Our highly efficient optimized mixed refrigerant process and our ability to package the modular liquefaction plant in our workshop allows us to provide the lowest installation and operating costs for a small-scale LNG plant in the LNG marketplace.”

Karr said the equipment will be delivered to Cryopeak in early summer.

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