CB&I has been tapped to build two liquefied natural gas (LNG) storage tanks for peak shaving facilities under development in southeastern Wisconsin, where demand has increased for incremental firm deliveries. 


Utility We Energies is developing the small-scale LNG terminals to better meet natural gas demand on the coldest days of the year and cut its reliance on interstate pipelines. CB&I, McDermott’s storage business, said the tanks would have the capacity to store 12 million gallons of LNG, or roughly the equivalent of 120 MMcf of natural gas.

The Bluff Creek LNG facility would be located in Walworth County, while the Ixonia LNG facility would be located to the north in Jefferson County. The terminals are expected to cost $185 million each and be completed by 2023 in time for winter peak heating season, according to state regulatory filings. Construction is expected to start this year. 

We Energies spokesman Brendan Conway told NGI that natural gas would be supplied to the facilities from its existing distribution system. Those supplies would be liquefied, stored and regasified for delivery at both sites. We Energies serves more than 1.1 million natural gas customers in Wisconsin. 

The company filed a proposal to the Public Service Commission of Wisconsin (PSCW) in 2020 to construct the Bluff Creek and Ixonia facilities to enhance its reliability of supply. The PSCW authorized construction of the projects late last year. CB&I built the first LNG peak shaving facility in North America in 1965.