Wednesday, October 1, 2014

LNG Fueling Facility to Open in Baton Rouge

Waller Marine and Tenaska NG Fuels, LLC, a subsidiary of Omaha-based energy company Tenaska, announced they would open a facility in Baton Rouge to liquefy natural gas for sale to natural gas powered trucks and marine vessels.  The facility will be located on 80 acres at the Port of Baton Rouge near Interstate 10 and US 190 and will be the first of its kind in Louisiana.  The owners expect to produce 200,000 gallons of LNG per day, with the ability to expand if demand warrants.  Given the proximity of the facility to the Haynesville Shale, it is likely that the Haynesville will be a good source of gas for the project.

The marine industry has justifiably come under increased scrutiny for the pollution it causes, and increased use of natural gas would be a welcome substitute for burning low grade bunker fuel, which is only a few steps above liquid asphalt.  While the use of LNG (not to be confused with CNG, which fuels smaller vehicles) as transport fuel is in its infancy, it is a viable future market that will increase consumption of natural gas (although not significantly) and diversify its user base.

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