Pivotal LNG, Carib Energy Reach Multi-Year Supply Deal
Pivotal LNG announced a multi-year agreement to sell liquefied natural gas (LNG) to Carib Energy LLC, a Crowley Maritime Corp. subsidiary. Crowley will transport and deliver LNG from the U.S. mainland to its newest client, Molinos de Puerto Rico, a subsidiary of Ardent Mills LLC, the island’s leading supplier of flour as well as wheat, corn and rice-based food ingredients.
“Crowley’s partnership with Pivotal LNG continues to help our customers meet their energy needs with cleaner, efficient fuel sources,” said Crowley Vice President Greg Buffington. “With Pivotal and Crowley’s logistics team working together, Molinos will be able to expand environmental sustainability efforts and better manage weather-related power challenges that can affect Puerto Rico.”
Pivotal will load LNG onto international shipping organization (ISO) containers, authorized by the U.S. Department of Transportation to carry approximately 10,000 gallons of LNG. Crowley’s domestic logistics team will coordinate the over-the-road transport of the 40-foot ISO containers to the company’s Jacksonville, Fla., shipping terminal, where they will be loaded onto company-owned vessels. Upon arrival on the island, Crowley’s Puerto Rico-based logistics team will deliver the LNG to Molinos. There, the LNG will be re-gasified and used for power consumption.
“This project provides an environmentally friendly fuel to Molinos that will help reduce emissions in Puerto Rico and its dependency on other petroleum products,” said Tim Delay, vice president of Pivotal LNG. “Liquefied natural gas is a clean, domestically produced, alternative fuel that can be used in multiple ways. This additional long-term sale of LNG to Crowley showcases the value of LNG as an alternative energy source.”
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 10,000-gallon 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. Crowley is already supplying LNG to Coca-Cola Puerto Rico Bottlers in Cayey and Club Caribe in Cidra, both wholly owned subsidiaries of CC1 Companies, and to a major pharmaceutical company on the island. The latest sales agreement continues a partnership between Carib Energy and Pivotal LNG that began in 2014 for the sale and delivery of LNG to the island.
Over the past two years, Crowley's LNG group has safely transported more than 250 LNG containers, comprising more than 2.6 million gallons, from Jacksonville to Puerto Rico.