The new facility marks a major breakthrough in LNG supply to Northern Canada. Credit: CRYOPEAK.

Cryopeak LNG Solutions has started construction of a new liquefied natural gas (LNG) production facility in Fort Nelson, British Columbia, Canada.

The new facility is expected to produce up to 90,000 gallons of LNG per day. It will be the closest LNG production point to northern Canada.

It is the first fully funded and permitted facility in the Fort Nelson area and has been designed to incorporate a new truck loading system that optimises the loading of Cryopeak’s fleet of LNG Super-B tankers.

The installation requirements at the site will be very minimal as the plant is designed to be modular.

Cryopeak CEO Calum McClure said: “We are excited to now have permits in hand and shovels in the ground.”

According to the company, the facility allows communities and remote industries to have an environmentally sustainable fuel source at a lower cost.

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Furthermore, the project marks a key breakthrough for energy supply to Northern Canada.

Cryopeak has contracted CryoSys to provide the liquefaction equipment to produce the LNG. The equipment is expected to be delivered this year.

CryoSys president Neil Karr said: “We are delighted to have been awarded this contract to deliver the liquefaction package to Cryopeak’s LNG facility in Northern BC.

“Our highly efficient optimised mixed refrigerant process and our ability to package the modular liquefaction plant in our workshop allows us to provide the lowest installation and operating costs for a small-scale LNG plant in the LNG marketplace.”

Cryopeak is an LNG distributor that operates a fleet of 16 tankers in Canada.