Ferus Natural Gas Fuels Inc. Secures Long-term LNG Supply Contract with Yukon Energy Corporation, Whitehorse
CALGARY and WHITEHORSE, March 2, 2020 - Ferus Natural Gas Fuels Inc. ("Ferus NGF") and Yukon Energy Corporation ("Yukon Energy") have entered into a first-of-its-kind, four-year contract for the supply and delivery of liquefied natural gas ("LNG") for power generation in Whitehorse, Yukon. Following a competitive tender process, the contract came into effect on January 1, 2020.
"Ferus NGF is committed to developing Canada's domestic LNG market and partnering with local businesses and Indigenous groups to create long-term economic, social and environmental benefits," said Travis Balaski, Business Unit Vice President of Ferus NGF. "We're confident in the long-term viability of LNG as a clean, affordable fuel and we believe this contract enhances Yukon's energy security while bringing many additional benefits to the territory."
Ferus NGF has partnered with Chieftain Energy LP ("Chieftain") as its first-call LNG transportation carrier. Chieftain is a Whitehorse-based, majority First Nation-owned energy, transportation and logistics company providing valuable regional expertise. Chieftain is 80 per cent owned by Air North Partnership and 20 per cent owned by Kluane Dana Shaw LP.
The LNG being delivered to Yukon Energy comes from plants in two locations, one in Elmworth, Alberta and the other near Dawson Creek, British Columbia. Ferus NGF owns and operates the Elmworth plant and has partnered with KATE Energy Holdings Inc. ("KATE Energy") to secure product from the Dawson Creek plant. Utilizing LNG from both facilities ensures the availability of product necessary to meet Yukon Energy's requirements.
LNG is an ideal fuel to supplement hydroelectric power and other renewables. When hydro reservoirs are low, and/or when demand spikes – as it did in Whitehorse in January 2020 – LNG is a reliable back-up to produce much-needed electricity for heating and powering homes and businesses.
LNG is the cleanest fossil fuel, producing 30 per cent less greenhouse gas emissions than diesel and virtually eliminating hazardous particulate matter. LNG has other environmental benefits as well: it is noncorrosive and nontoxic, and if spilled, it immediately dissipates leaving no contamination behind.
"Utilizing LNG provides lower cost, reliable power back-up when water levels are low and reduces our dependence on diesel, which affords immediate and significant environmental benefits," said Andrew Hall, President and CEO of Yukon Energy. "As an isolated electrical grid, we only have ourselves to rely on to generate the power Yukoners need. Securing a four-year contract for LNG provides us with reassurance knowing that a dependable source of fuel is readily available to generate power when we need it during drought years like we've had, and in the near future as we work to build and connect new dependable sources of renewable electricity in Yukon."
To meet transport requirements, Ferus NGF has assembled an LNG trailer fleet capable of delivering 2,400 GJ per day, which is enough energy to heat over 7,500 average Canadian homes for a day, based on Statistics Canada data on household energy use. To ensure the safe transport and delivery of LNG, Ferus NGF has a dedicated, experienced Health, Safety and Environment ("HSE") team who are trained and equipped to respond to emergency situations.
About Ferus Natural Gas Fuels Inc.
Ferus Natural Gas Fuels Inc. ("Ferus NGF"), is privately held by Energy & Minerals Group. Ferus NGF is an Alberta-based company focused on end-to-end LNG fuelling services including liquefaction, transportation and logistics, emergency response, and storage for its customers in Northern and Western Canada. Ferus NGF owns and operates Canada's first merchant LNG facility located in Elmworth, Alberta. The 50,000 gallon per day ("GPD") facility is being expanded to 150,000 GPD to support a growing domestic LNG market. The expansion has been permitted and long-lead equipment has been delivered. Construction is expected to begin in Q1 2020 and completed by Q4 2020. For more information, please visit www.ferusngf.com
About Energy & Minerals Group
Energy & Minerals Group ("EMG") is the management company for a series of specialized private equity funds. EMG focuses on investing across various facets of the global natural resource industry including the upstream and midstream segments of the energy complex. EMG has approximately $13 billion of regulatory assets under management and approximately $12 billion in commitments have been allocated across the energy sector since inception. For additional information, please visit www.emgtx.com