Cryopeak LNG Solutions Breaks Ground On New LNG Production Facility In Fort Nelson, BC

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Apr 02, 2020, 11:34 ET

Marks a major breakthrough in LNG supply to Northern Canada

RICHMOND, British Columbia, April 2, 2020 /PRNewswire/ -- Cryopeak LNG Solutions Corporation ("Cryopeak"), based in Richmond BC, has begun construction of a new liquefied natural gas (LNG) production facility located in Fort Nelson, BC, 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 portions of Alaska. A key feature of the plant design incorporates a new truck loading system that optimizes loading of Cryopeak's fleet of LNG Super-B tankers. The plant will be modular in its design with minimal installation requirements at site.

"We are excited to now have permits in hand and shovels in the ground," says Calum McClure, CEO of Cryopeak.

This project marks an important breakthrough for energy supply to Northern Canada. 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. "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.

This project is in line with Cryopeak's strategy of being a vertically integrated and full-service provider of LNG to Northern Canada and Alaska. The company is focused on providing customers a lower cost, more environmentally sustainable fuel source.

About Cryopeak LNG Solutions Corporation: Cryopeak is the leading distributor of LNG in Canada and currently has a fleet of 16 tankers operating in Canada, as well as equipment and technologies for storage, regasification and fuel dispensing. Cryopeak is ISO 9001 certified and has emergency response plans approved by Transport Canada. Cryopeak was founded in 2012 and is a portfolio company of BP Energy Partners, LLC. More info: www.cryopeak.com

About CryoSys, LLC.: CryoSys is a full solutions provider that specializes in building highly efficient modular LNG plants. CryoSys was formed in 2013 and has delivered a variety of LNG and gas processing plants around the world. More info: www.cryosys.net

About BP Energy Partners, LLC.: BP Energy Partners, LLC is a private equity firm focused primarily on middle-market control investments within the Natural Gas Value Chain. In addition to capital, BPEP is dedicated to bringing relationships, management expertise, and operating experience to partner with entrepreneurs, family run businesses and management teams. BPEP's investment strategy is to partner with organizations that provide a solution-oriented approach which increases productivity, decreases costs and provides environmental benefits. BPEP was founded in 2013 and currently manages over $500 million in committed capital. More info: www.bpenergypartners.com

SOURCE Cryopeak LNG Solutions Corporation