Cryopeak LNG Solutions Corp. has started work on what it said would be the closest liquefied natural gas (LNG) production facility to both Northern Canada and parts of Alaska.

The small-scale facility would be capable of producing 90,000 gallons of LNG daily from Fort Nelson, located in the northeast corner of British Columbia. The plant’s design also includes what Cryopeak said is a new truck-loading system that optimizes loading of its fleet of LNG tankers.

The company has billed the project as key for expanding energy supply in Northern Canada by making the cheaper fuel more accessible to remote communities and industries. Liquefaction equipment is expected to arrive at the site in early summer for installation. The plant eventually could come to serve as a transportation and distribution hub for the fuel, Cryopeak said.

Cryopeak offers virtual pipeline services from midwestern, to western and northwestern Canada, providing regional LNG supply for remote mines, power generation and utility distribution, among other applications. The company is currently at work in the Fort Nelson area to further develop opportunities for the use of LNG throughout the region.