Pivotal LNG , WesPac Midstream and TOTE sign agreement for LNG
Pivotal LNG, Inc. (Pivotal LNG), a wholly owned subsidiary of AGL Resources Inc. (NYSE: GAS), and WesPac Midstream LLC (WesPac) announced they have signed a long - term agreement with TOTE, Inc. (TOTE) to provide liquefied natural gas (LNG) to fuel TOTE’s two new state - of - the - art containerships, the company said in its press release.
Pivotal LNG and WesPac are addressing the growing demand for LNG in the southeast by constructing a new natural gas liquefaction facility in Jacksonville, Fla. The land has been purchased, the engineering a nd permitting process is advancing, and the new Jacksonville LNG facility is expected to be operational in mid - 2016. The Jacksonville site provides the capability to add additional natural gas liquefaction and LNG storage capacity in the future in order to supply other customers in Jacksonville and regional markets.
“This announcement marks the beginning of long - term, sustainable relationships that support the growth of LNG as a clean alternate fuel in and around the Jacksonville area ,” said Steve Cittad ine, president of Pivotal LNG . “ The combination of this new LNG facility in Jacksonville and our existing portfolio of LNG assets positions us well to serve the fueling needs of our current and future customers in the southeast , Puerto Rico, the US Virgin Islands and potentially the broader Caribbean market .”
Dave Smith, president of WesPac commented, “With this landmark agreement, WesPac has secured property in Jacksonville for the construction of the first LNG liquefaction facility supplying marine fuel in North America. Together with our partners Pivotal LNG and TOTE, we’ve effectively established LNG as the fuel of the future for marine vessels in the US. We look forward to the completion of the project and expanding the facility going forward as more markets transition to cleaner - burning LNG fuel. ”
TOTE’s new dual - fuel ‘Marlin - class’ containerships, the first in the world, are expected to be delivered to Jacksonville in late 2015 and early 2016 and will operate between Jacksonville and Puerto Rico. Operating these new LNG - powered containerships will result in significant emissions reductions, making them the most environmentally friendl y ships in the world. Both ships, powered by dual - fuel LNG engines, greatly surpass the requirements of the U.S. Environmental Protection Agency’s clean air regulations.
Anthony Chiarello, president and CEO of TOTE commented: “ It’s an exciting time for TOTE, WesPac, Pivotal LNG and the Puerto Rico trade. The new Marlin class vessels that will enter service in late 2015 are the first LNG powere d containerships in the world. This significant investment in the trade, the environment and in Jones Act ve ssels will create a long - lasting, positive impact in Jacksonville and Puerto Rico. ” "Ports and regions that embrace the LNG opportunities before us stand to gain the most in terms of jobs, economic growth and business connectivity with communities around the world," said Brian Taylor, CEO of the Jacksonville Port Authority (JAXPORT).
About Pivotal LNG
A wholly - owned subsidiary of AGL Resources (NYSE: GAS ), Pivotal LNG is bringing liquefied natural gas to companies and industries throughout the United States through reliable, flexible and cost - effective solutions.
About WesPac Midstream LLC
WesPac Midstream LLC is a midstream energy development company owned principally by a private equity investment fund sponsored and managed by Highstar Capital, an infrastructure investment firm with deep expertise in energy investing and development. In August 2 014, the Highstar Capital investment team joined Oaktree Capital Management, L.P., a global investment management firm with more than $93 billion in diversified assets under its management as of September 30, 2014, and considerable experience in the energy industry.
About TOTE, Inc.
TOTE, headquartered in Princeton, NJ, owns and oversees a portfolio of independently managed companies that specialize in Maritime, S hip Management , Shipholdings and Logistics. TOTE is part of the Saltchuk family of companies. Saltchuk is a family - owned transportation and petroleum distribution company located in Seattle, WA.
