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Second LNG Production Facility Proposed in Florida

A second liquefied natural gas (LNG) production facility has been proposed for Florida's Atlantic Coast, this one in Titusville to support expanded use of natural gas for transportation.

A proposal from Florida East Coast Industries (FECI) is scheduled to be reviewed by the Titusville city planning and zoning commission Jan. 21 and by the town's city council on Jan. 27. FECI is eyeing a mid-2016 startup for the facility.

The FECI announcement comes less than a week after a unit of Atlanta-based AGL Resources Inc. and WesPac Midstream LLC signed a long-term agreement with marine shipper TOTE Inc. to provide LNG for two new TOTE container ships operating out of Jacksonville, FL (see Daily GPIJan. 6). AGL's Pivotal LNG and WesPac touted the deal as a sign of a shift to LNG as a marine vessel fuel in the United States.

Without providing much detail on the proposed facilities and markets for the LNG facilities, privately held FECI, which is backed by private equity firm Fortress Investment Group, said it plans to acquire natural gas from existing pipelines serving the area along the central Florida east coast near the Kennedy Space Center. Titusville is nicknamed "Space City."

There would be cleaning and liquefaction facilities as well as storage tanks at the production site. LNG ultimately would be delivered to customers via truck or rail, FECI said.

"Natural gas is critical to this region," said FECI Executive Vice President Husein Cumber. "As we look at where the demand is, we see the Space Coast as being a location that we need one of these facilities in order to continue economic growth."

There are a number of proposals on the Gulf and other U.S. coasts for supplying LNG for marine transport, such as two Houston-based companies, LNG America and Buffalo Marine Service Inc., agreeing last fall to collaborate on applications for the high-horsepower marine market (see Daily GPI, Oct. 21, 2014).

Last September, Tenaska NG Fuels LLC and Waller Marine Inc. agreed to develop and operate Louisiana's first natural gas liquefaction and fueling facility along the New Orleans-Baton Rouge corridor of the Mississippi River with access to the Gulf of Mexico (see Daily GPI, Sept. 30, 2014).

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