Stolt-Nielsen Gas and partners form JV for LNG liquefaction and logistics in Canada
Stolt-Nielsen Gas Ltd. (SNG), part of Stolt-Nielsen Limited (SNL), SunLNG Holding Ltd. (SunLNG) and LNGaz Ltd. have agreed to form a new start-up focused on the development of small-scale LNG liquefaction and logistics services in Bécancour, Québec, Canada. 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 US$ 20 million with SNG owning 50% of the venture, SNL said in a press release
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.
Commenting on the transaction, Niels G. Stolt-Nielsen, Chief Executive Officer of 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."
About Stolt-Nielsen Limited
Stolt-Nielsen Limited (SNL or the "Company") is a leading global provider of integrated transportation solutions for bulk liquid chemicals, edible oils, acids, and other specialty liquids through its three largest business divisions, Stolt Tankers, Stolthaven Terminals and Stolt Tank Containers. Stolt Sea Farm produces and markets high quality turbot, sole, sturgeon, and caviar. Stolt-Nielsen Gas develops opportunities in LPG and LNG shipping and distribution. Stolt-Nielsen Limited is listed on the Oslo Stock Exchange.
