Crowley Maritime Corp. announced today it will be supplying liquefied natural gas (LNG) sourced from the U.S. to an undisclosed Puerto Rico-based pharmaceutical company under a multi-year contract.
The LNG will be shipped via trucks in 10,000 gallon ISO containers to Crowley’s shipping terminal in Jacksonville, Florida and then loaded on to Crowley-owned ships bound for Puerto Rico.
The LNG will be used as an alternative to diesel, the pharmaceutical company’s current fuel source. Once in Puerto Rico, the LNG will be re-gasified and piped into the facility.
“We are thrilled to now be able to provide such valuable services to another customer in the Caribbean,” said Greg Buffington, Crowley vice president. “From the sourcing and transportation to the delivery into the equipment, the entire process and LNG supply chain will be seamless for them. We look forward to playing a pivotal role in supplying a cost-efficient, safe, reliable and environmentally friendly natural gas fuel source for our customer’s operations.”
Last year, Crowley announced it had entered the LNG market by acquiring Florida-based Carib Energy LLC. Founded in 2011, the Crowley company was the first to receive a small scale, 25-year, LNG export license from the U.S. Department of Energy (DOE) 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 tanks, 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.
In March, Crowley announced the signing of its first multi-year contract with Coca-Cola Bottlers of Puerto Rico to supply containerized, U.S.-sourced LNG to two of the manufacturer’s plants in Cayey and Cidra, Puerto Rico. Crowley is currently in negotiations with several other potential industrial customers that will soon convert to LNG.
Most recently, in September, Crowley’s Carib Energy announced the signing of a long-term firm LNG supply agreement with Pivotal LNG, Inc., a subsidiary of AGL Resources Inc., which owns multiple subsidiaries with LNG liquefaction facilities.