Ferus in Northern Canada LNG Supply Deal
Ferus Natural Gas Fuels (Ferus NGF) said March 2 it has entered into a four-year contract with Yukon Energy for the supply and delivery of LNG for power generation in Whitehorse, the capital of Canada’s northern Yukon Territory.
“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.”
The LNG to supply the contract will come from two micro-LNG production facilities, one in Elmworth, in northwestern Alberta, owned and operated by Ferus NGF, and the second, a third-party facility in Dawson Creek, BC.
Drawing on two production facilities will ensure Yukon Energy’s requirements are met, as will a trailer fleet capable of delivering 2,400 GJ/day, enough LNG to heat over 7,500 average Canadian homes for a day. Ferus NGF has contracted with Chieftain Energy, based in Whitehorse and majority owned by First Nations interests, as its “first call” LNG transportation carrier.
The LNG fuel will be used by Yukon Energy to supplement its hydroelectric and other renewable sources. When hydro resources are low, and/or when demand spikes – as it did in Whitehorse in January 2020 – LNG is a reliable back-up to produce needed electricity for heating and powering homes and businesses.
“Utilising 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,” Yukon Energy CEO Andrew Hall said. “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.”