Crowley, Pivotal Reach Multi-Year LNG Supply Pact
Crowley Fuels has announced that it has signed another multi-year supply contract with Pivotal LNG to support a major pharmaceutical company’s energy needs in Puerto Rico. The contract, executed through Crowley subsidiary Carib Energy (USA) LLC, calls for Crowley to transport LNG from Pivotal facilities on the mainland to the island manufacturer.
Crowley’s Greg Buffington, vice president, LNG business development said: “Crowley will continue to provide an uninterrupted supply chain of natural gas to the customer’s site, just as we have done since 2014, helping them utilize a safe, reliable and environmentally friendly fuel for their operations.”
With Crowley’s supply chain solution, LNG is loaded into Crowley’s 10,000-gallon international shipping organization (ISO) containers at one of Pivotal’s LNG supply sources in the southeastern U.S. These ISO containers are then transported via truck and loaded onto Crowley vessels in Jacksonville, Fla. Crowley then provides ocean transportation and delivers the LNG to various customers in Puerto Rico.
“Pivotal and Crowley continue to work together to expand the delivery of LNG to companies in Puerto Rico,” said Tim Delay, vice president of Pivotal LNG. “Liquefied natural gas is a clean, domestically produced alternative fuel that is being used by multiple industries to reduce emissions and energy costs. This transaction serves as another example that the partnership and the virtual LNG pipeline we have created with Crowley delivers an economic, reliable and environmentally friendly fuel to the island.”
Once operational, Pivotal expects to source LNG volumes from the JAX LNG plant that is being jointly developed with Pivotal’s partner, Northstar Midstream, in Jacksonville. JAX LNG is a new, state-of-the-art liquefied natural gas facility and will be North America’s first coastal LNG facility with marine and truck loading capabilities. The JAX LNG facility is expected to go into operation in 2018.
Crowley’s Carib Energy was the first company to receive a small scale, 25-year, LNG export license from the U.S. Department of Energy for LNG transportation from the U.S. into Free Trade Agreement (FTA) countries.
Shortly thereafter, a Crowley LNG services group was formed to begin offering supply, transportation and distribution of LNG services via ISO containers and the company was additionally granted the first small-scale license for supply, transportation and distribution of LNG into Non-Free Trade Agreement (NTFA) countries in the Caribbean, Central and South America.
To date, Crowley has successfully transported more 6.1 million gallons of LNG as well as provided engineering and other services.