The new joint venture, to be named Stolt LNGaz Ltd., will have a Canadian operating subsidiary, Stolt LNGaz Inc. The transaction represents an initial investment of USD 20 million, with SNG owning 50% of the venture.
Stolt LNGaz intends to provide clean burning natural gas to remote mining operations and other industrial customers in northeast Canada at a substantially lower cost than diesel and residual fuel oil, which are the primary energy sources today.
Under the current plan, gas delivered via existing pipelines terminating in southeast Canada will be liquefied at a small-scale plant to be constructed by Stolt LNGaz.
The fuel will then be transported primarily via LNG carriers to a number of customers and hubs across northeast Canada. Cost advantages are expected to enable surplus production to be exported to northern Europe.
Stolt LNGaz expects the total capital investment to be approximately US$570 million over the next four years in infrastructure and services development, partly funded with debt financing secured by long-term customer contracts.
Niels G. Stolt-Nielsen, Chief Executive Officer at Stolt-Nielsen Limited, said: “This start-up investment leverages Stolt-Nielsen’s expertise in marine logistics. We are pleased to be partnering with SunLNG, along with the experienced energy entrepreneurs, Bjørn Torkildsen and Rodney Semotiuk.”
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