Tenaska NG Fuels and Waller Marine have agreed to develop the first natural gas liquefaction and fueling facility in the state of Louisiana, tapping into growing demand for oil and gas exploration and production on the Gulf Coast.
The project, called Tenaska Bayou LNG, is located along the New Orleans-Baton Rouge Mississippi River corridor with access to the Gulf of Mexico.
It will provide provide liquefied natural gas (LNG) and compressed natural gas (CNG) as alternative clean-burning fuels for the high-horsepower marine, transportation, and natural gas and oil exploration and production industries in the region, according to a statement.
Omaha, Nebraska-based Tenaska will provide equity for the project and will be the managing partner and commercial leader. It will also coordinate project development and construction.
Leveraging its natural gas pipeline and downstream logistics expertise, Tenaska also will be responsible for natural gas supply and commodity risk management, the statement added.
Both Tenaska and Waller Marine, which is already actively developing regional markets through its LNG development subsidiary, Waller LNG Fueling (Baton Rouge), are jointly marketing the alternative fuels, it said.
Operations are expected to begin in the first quarter of 2017, it added.
The facility will initially be capable of producing 200,000 gallons of LNG per day. Its proximity to Interstate 10 and Highway 190 allow easy access to the growing LNG-fueled heavy truck market while simultaneously providing clean-burning LNG fuel to assist the marine industry in meeting stricter emission standards, it added.
The plant will have access to Class 1 rail adjacent to the property and tractor truck fueling facilities for LNG-fueled trucks, as well as loading facilities for transporting LNG via tanker truck. To facilitate marine industry access to LNG fuel, a dock will be constructed for the mooring of LNG bunker barges. Waller Marine will coordinate the bunker barge design and construction. All of these offload capabilities will provide for efficient delivery of LNG to end-use customers.
Tenaska Bayou LNG will support growing LNG markets to displace higher-cost truck diesel and marine diesel fuels and other petroleum-based products.