The start-up company will focus on the development of small-scale liquified natural gas (LNG) liquefaction and logistics services in Bécancour, Québec. The joint venture, Stolt LNGaz Ltd., will have a Canadian operating subsidiary, Stolt LNGaz Inc. The transaction represents an initial investment of $20m with SNG owning 50 percent of the venture.

The companies say gas delivered via existing pipelines terminating in southeast Canada will be liquefied at a small-scale plant to be constructed by Stolt LNGaz. The fuel will then be transported primarily via LNG carriers to a number of customers and hubs across northeast Canada. SNG expects cost advantages to enable surplus production to be exported to northern Europe.

Late last year, Shell, General Electric and Clean Energy Fuels announced plans to begin construction on the United States’ first fuel station for LNG-fueled cargo ships in Jacksonville, Fla. GE said the U.S. will need between 50 and 100 small-scale LNG plants for ships, trains, mining and trucks by 2025. Each plant is expected to cost $50m to $150m.

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