Norwegian ship owner Stolt-Nielsen is teaming up with two other players in a new venture aimed at supplying remote Canadian mining operations with natural gas.
The joint venture, which will see an estimated investment of $570 million in the next four years, may also aim to export any surplus gas to European markets.
Stolt LNGaz, set up along with SunLNG Holding and LNGaz and in which Stolt-Nielsen Gas will have a 50% stake, is getting an initial investment of $20 million from Stolt-Nielsen.
The company is looking to “provide clean-burning natural gas to remote mining operations and other industrial customers in north-east Canada at a substantially lower cost than diesel and residual fuel oil”, Stolt-Nielsen said on Wednesday.
The new company will build a small liquefaction plant in Becancour, on the south-east coast of Canada in Quebec, that will take gas from existing pipelines. It will then be transported primarily by liquefied natural gas carriers along the north-east Canadian coast.
However, surplus production could be earmarked for export to northern Europe, the ship owner continued.