Tuesday, February 13, 2018

US Shipping Group Negotiates Another Liquid Natural Gas Contract

Provision of Vital Energy Supplies to Pharmaceutical Company Continues
Shipping News Feature
US – PUERTO RICO – Crowley Fuels, a division of Florida based group Crowley Maritime, has signed another multi-year supply contract with Pivotal LNG, part of Southern Company Gas, to support a major pharmaceutical company's energy needs in Puerto Rico. The contract, executed through Crowley subsidiary Carib Energy (USA) LLC, calls for Crowley to transport LNG from Pivotal facilities on the mainland to the island manufacturer. Crowley's Carib Energy was the first company to receive a small scale, 25-year, LNG export license from the US Department of Energy for LNG transportation from the US into Free Trade Agreement (FTA) countries.

Following that arrangement a Crowley LNG services group was formed to begin offering supply, transportation and distribution of LNG services via ISO containers and the company was additionally granted the first small-scale license for supply, transportation and distribution of LNG into Non-Free Trade Agreement (NTFA) countries in the Caribbean, Central and South America, something which has now seen the group transport more than 6.1 million gallons of LNG.

The latest contract will see LNG loaded into Crowley’s 10,000-gallon ISO containers at one of Pivotal’s LNG supply sources in the south eastern US. These ISO containers are then transported via truck and loaded onto Crowley vessels in Jacksonville, Florida. Crowley then provides ocean transportation and delivers the LNG to various customers in Puerto Rico. Tim Delay, vice president of Pivotal LNG, commented:

“Pivotal and Crowley continue to work together to expand the delivery of LNG to companies in Puerto Rico. Liquefied natural gas is a clean, domestically produced alternative fuel that is being used by multiple industries to reduce emissions and energy costs. This transaction serves as another example that the partnership and the virtual LNG pipeline we have created with Crowley delivers an economic, reliable and environmentally friendly fuel to the island.”

Once operational, Pivotal expects to source LNG volumes from the JAX LNG plant that is being jointly developed with Pivotal’s partner, Northstar Midstream, in Jacksonville. JAX LNG is a new, state-of-the-art liquefied natural gas facility and will be North America’s first coastal LNG facility with marine and truck loading capabilities and the facility is expected to go into operation later this year. Peaking of the renewal of the latest contract Crowley’s Greg Buffington, vice president, LNG business development, observed:

“We are very pleased to enhance our relationship by continuing to grow our LNG services and volumes with this critical customer in Puerto Rico. Crowley will continue to provide an uninterrupted supply chain of natural gas to the customer’s site, just as we have done since 2014, helping them utilize a safe, reliable and environmentally friendly fuel for their operations.”