Puget LNG’s waterside location in the Port of Tacoma is ideal for providing LNG to a marine customer base, with easy access to rail and on-road transportation corridors.
The Puget LNG Facility
Puget LNG is positioned to be the lead supplier of liquefied natural gas (LNG) in the Pacific Northwest. Located in the Port of Tacoma, Puget LNG is focused on providing customers with a safe, reliable and economic source of LNG with various end uses. With easy access to water, rail and roadways, Puget LNG is located to efficiently provide LNG to transportation customers within the region.
Puget LNG has the experience to work with customers to provide a collaborative approach to customers looking to switch to a lower carbon fuel. We welcome the ability to work with customers to lower their carbon footprint in combination with lowering operations costs.
The facility will have a shared function, providing LNG for Puget LNG’s commercial customers and also providing necessary domestic supply back up for Puget Sound Energy’s customers.
- Shoreside direct loading access
- Designed to meet marine fueling requirements
- Water loading access with a flow rate of 2,640 gallons/min
- Two tanker truck loading bays with a flow rate of 300 gallons/min
- 225,000 gallons per day liquefaction (expandable)
- 2.2 million gallons of LNG storage
- Rail spur on site for future potential rail car loading
Construction is currently underway and the LNG facility will be in production by late 2020.
Puget Sound Energy and Puget LNG (both subsidiaries of parent company Puget Energy) are building a $310 million LNG facility in the Port of Tacoma.
Puget LNG ownership structure
LNG is considered to be the best fuel option to meet the International Maritime Organization’s 0.5% global Sulphur cap for marine fuels, which comes into effect in 2020. This reduction from the current standard of 3.5% Sulphur is in addition to other Sulphur caps on marine fuels within existing Environmental Control Area’s (ECA’s) in various regions, particularly within the coastal regions of the continental United States and Canada.
LNG meets all of these requirements as it contains virtually no Sulphur (typically about 0.004% on a mass to mass basis). This allows for a LNG fueled ship to operate in all regions without the need for fuel switching or expensive exhaust scrubbers.
Additionally LNG has other distinct benefits over traditional oil-based marine fuels such as:
- Lower NOx, SOx, PM and GHG over HFO without the need for complicated exhaust clean up systems
- Less environmental risk in the case of a fuel spill
- Ability to transition to renewable natural gas as supply becomes available
The IMO strategy for the reduction of GHG emissions from ships, issued in 2018, lays out the plan to reduce the total emissions from global shipping by 40% by 2030 and 70% by 2050, compared to 2008 levels. Fueling ocean going vessels with LNG can greatly contribute to this goal.
North America has as abundant supply of natural gas and with a dedicated marine fuel terminal, Puget LNG provides marine customers with fuel price stability and a dedicated supply chain. The facility is designed specifically to meet maritime fueling requirements with shore side direct loading access. This allows Puget LNG in the future to provide ship-to-ship and truck-to-ship LNG transfer.
TOTE Maritime is an industry leader in environmental responsibility through many environmental initiatives including plans to convert their vessels to liquefied natural gas power (LNG).
TOTE is converting the engines of the two Orca-class container ships that travel from Tacoma to Alaska to duel fuel. These vessels will also surpass the standards put in place by the U.S. Environmental Protection Agency’s clean air regulations.
LNG fueling is one of several advanced technologies being considered to make big changes in the railroad business.
Major railroads like Union Pacific and Burlington Northern Santa Fe for example, are forging ahead with what could be the next big step in motive power: locomotives fueled by LNG. The two major motive power suppliers, EMD and GE, are developing and intensively testing engines and will soon have LNG fueled locomotives in revenue-service evaluation in a variety of locations across the US.
With Puget LNG’s location in the Port of Tacoma, major rail lines and inter-modal yards are in close proximity. The Tacoma LNG facility site is accessible by rail, with a spur onto the site, giving future potential for directly fueling LNG tender railcars.
On-Road Transportation Markets
Used more and more in truck fleets, LNG has the potential to offer fuel cost savings when compared to conventional diesel. It can also reduce sulphur emissions, particulates and nitrogen oxides and help reduce greenhouse gas emissions.
Natural gas engines are available for a variety of applications from Class 8 trucks to local delivery trucks. In the Puget Sound region there are already vehicles on the road using LNG. For example Potelco and Interstate Trucking have LNG vehicles in their fleets, using existing LNG fueling locations in the region.
Off-Grid Industrial Markets
The ability to easily and safely transport LNG makes LNG a very suitable fuel for industrial customers who are outside of natural gas service areas. This could be locations where pipeline natural gas is not available or not available in required volumes.
Transporting LNG to an industrial location for use in applications, such as kilns or steam generation for example, creates a “virtual pipeline”. This allows off-grid industrial customers to benefit from the operational and environmental advantages of natural gas over other fuel types.
In many cases, LNG can easily replace heavy fuel oil or diesel in applications and there are many examples of this in regions sensitive to criteria air pollutants or GHG emissions. These range from asphalt plants to blast furnaces for specialty aggregates and raw materials.
Puget LNG is happy to explore opportunities to bring natural gas in the form of LNG to your location.
Liquefied natural gas (LNG) is less expensive than conventional fossil fuels such as gasoline and diesel. Puget LNG converts clean-burning natural gas into LNG to provide to marine and over-land transportation customers. While converting the operations of your vessels and vehicles to use LNG takes investment, the payback on that investment begins right away with lower fuel and operating costs.
Puget LNG is connected to the Williams Northwest Pipeline and sources natural gas from British Columbia in Canada, trading through the Sumas Hub. The Sumas Hub predominantly supplies natural gas to the Northwestern United States and is less influenced by some of the broader gas markets in the USA. The price of natural gas typically trades lower at the Sumas Hub than the more well know Henry Hub.
Puget LNG welcomes the chance to work with customers to source their natural gas with a flexible approach to contract structures. We have the ability to provide a stable or floating monthly indexed natural gas commodity price or simple liquefaction tolling for customers with procured gas.
Puget LNG is happy to work with you to realize a positive impact on your bottom line, the local economy and the environment.
Natural gas is the cleanest burning fossil fuel. When cooled, natural gas becomes LNG and is a cleaner fuel alternative to oil-based fuel such as diesel, making it an environmentally responsible choice. This is true even when evaluating direct, upstream and end use GHG emissions.
LNG fuel cuts particulate matter (PM) emissions produced by ships by more than 85%, improving public health. It also reduces greenhouse gas emissions (GHG) by nearly 15%, sulfur dioxide (SOx) emissions by over 99% and nitrogen oxide (NOx) emissions by nearly 85%. Another important environmental advantage of LNG as fuel is that in the unlikely event of a spill, LNG turns into vapor and dissipates with no lasting effects on water or marine life.
The natural gas used to make LNG can also come from renewable sources, made entirely from organic waste. These waste streams can come from sources such as sewage and food or animal waste. The renewable gas is typically generated through a process called anaerobic digestion. Natural gas from renewable sources can offer a very compelling greenhouse gas benefit to customers over conventional fuels.
LNG is simply the liquid form of the natural gas used in millions of homes and vehicles. When cooled, natural gas is reduced to a liquid that is one six-hundredth the volume, making it easier to store and transport. It is not explosive or flammable in its liquid state.
As described by the U.S. Department of Energy (DOE), the physical and chemical properties of LNG render it safer than other commonly used hydrocarbons. For more than 40 years, the safety record of the global LNG industry has been excellent, due to attention to detail in engineering, construction and operations. LNG needs to be exposed to ambient temperatures to vaporize and the resulting vapor is only flammable within a narrow range of gas-to-air ratio, making combustion highly unlikely in the case of a leak.
To ensure safe operations, the Tacoma LNG facility has been designed in accordance with Federal and State agencies guidelines and standards. As stated by the Federal Energy Regulatory Commission (FERC), the focus on sound engineering practices within the industry leads to LNG’s remarkable safety record, particularly when looking at the movement of LNG by ship.
The Tacoma LNG facility has been designed to meet or exceed code compliance and provides additional layers of protection from an unsafe event. An independent safety report commissioned by the Tacoma Fire Department evaluated the project design and compliance and found no credible failure scenarios for the LNG tank, noting “the Tacoma LNG plant was designed to the applicable codes and standards with significant attention to detail and a perceived objective of becoming a best in class LNG facility.” The report goes on to say that some features “go beyond code compliance to provide additional layers of protection” and that that the full containment tank for the Tacoma facility has a “robust design suited for the local conditions,” which includes design features of a safe shutdown in case of an earthquake without loss of containment.