28 May 2014
Details
The new joint venture, to be named
Stolt LNGaz Ltd.,
will have a Canadian operating subsidiary,
Stolt LNGaz Inc.
The transaction represents
an initial investment of US$ 20 million
with SNG owning 50% of the venture.
Stolt LNGaz
intends to
provide clean burning natural gas
to remote mining operations and
other industrial customers
in northeast Canada
at a substantially lower cost than
diesel and residual fuel oil,
which are the primary energy sources today.
Under the current plan, gas
* delivered via existing pipelines terminating
in southeast Canada will be
* liquefied at a small-scale plant
to be constructed by Stolt LNGaz.
* The fuel will then be transported primarily via
LNG carriers to a number of customers and
hubs across northeast Canada.
Cost advantages are expected to
enable surplus production
to be exported to northern Europe.
Stolt LNGaz expects the total capital investment
to be approximately US$ 570 million
over the next four years
in infrastructure and services development,
partly funded with debt financing
secured by long-term customer contracts.
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