To: Dennis Roth who wrote (175254 ) 1/8/2013 10:19:10 AM From: Dennis Roth 1 Recommendation Respond to of 206176 Ferus and Encana's LNG Plans Focus on Canada by Matthew V. Veazey, Rigzone Staff, Monday, January 07, 2013rigzone.com ...Ferus LNG and Encana Corp. are teaming up to produce LNG that will stay closer to home. "Total diesel demand in Western Canada is 10 million gallons [38 million liters] per day," said Blaire Lancaster, director of government and public affairs for Ferus LNG. "Given the significant environmental and economic benefits of running off natural gas as an alternative to diesel, Ferus LNG will be working to convert as much of that demand to LNG as possible. As more end-users successfully make the transition to natural gas, this industry will grow rapidly. Ferus LNG believes natural gas is the fuel of the future." Ferus and Encana plan to build a 190,000-liter-per-day (50,193 gallons or approximately 85 tonnes per day) liquefaction plant near Grande Prairie, Alberta, to serve regional Oil Sands and shale gas operations... ..."LNG is quickly becoming the fuel of choice for HHP engines in both highway and off-road applications in North America," according to Eric Marsh, Encana's executive vice president and USA Division senior vice president. "This project demonstrates the increasing viability of LNG as a fuel alternative for a wide range of industries." In the case of Encana, the company realized a $12 million fuel cost savings in 2011 by using natural gas rather than diesel in its drilling rigs and company trucks. Although specific figures are not yet available for 2012, Encana expects even greater savings for the year. Encana's partner in the LNG project is cutting its own diesel usage as well. "Ferus Inc. understands the economic and environmental benefits of using LNG as an alternative fuel," noted Richard Brown, Ferus' president and CEO. "[N]ot only are we operating the first two LNG tractors in Alberta, we plan to convert our entire truck fleet over the next five years... ...Ferus and Encana will initially focus on oil and gas market applications such as fueling drilling rigs, fracturing pumpers and heavy-duty service trucks...