Ferus buys out of Encana to own 100% of Elmworth LNG facility

April 24
21:06 2014

Ferus Natural Gas Fuels, Inc., a wholly owned company of private equity firm The Energy & Minerals Group, has acquired Encana Corporation (TSX: ECA)’s 50% interest in the Elmworth, Alberta 190,000-litre per day liquefied natural gas (LNG) production facility to own 100% of the facility.

Ferus has retained key Encana technical and management personnel.

Phase one of the Elmworth LNG facility is slated to be operational in May 2014. It is strategically located in close proximity to the active Alberta-BC Deep Basin oil and gas region and will produce LNG fuel for use in drilling rigs, pressure pumping services, and heavy-duty trucks. Other high horsepower applications for this LNG supply include rail, mining, and remote power generation.

Opening in May 2014, the plant will play a key role in supplying low-cost, clean-burning LNG fuel to Western Canada’s high horsepower industries.
“Our experience with LNG has demonstrated significant cost savings and environmental benefits. Encana remains a key customer of Ferus and has committed to a multi-year LNG supply agreement to service our field operations,” said David Hill, Encana’s EVP of Exploration & Business Development. Selling our interest in the Plant allows us to focus on our core business and the execution of our new strategy.”

“We are pleased to continue working closely with Encana as we jointly lead the adoption of LNG fuel by the western Canadian oil and gas industry. In addition to Encana’s commitment to using LNG fuel, we are adding experienced Encana personnel to our team to ensure a seamless transition and exceptional service to our customers in the region,” said Richard Brown, President & CEO of Ferus.

Ferus Natural Gas Fuels is jointly building two LNG liquefaction facilities with ENN Canada in Edmonton, Alberta and Vancouver, BC, and is an equal partner in Eagle LNG Partners, a consortium dedicated to building out LNG infrastructure across the United States.

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