Pivotal to Deliver LNG to Carib for use in Puerto Rico

Pivotal LNG, Inc., a subsidiary of AGL Resources, announced this week a long-term agreement to sell liquefied natural gas (LNGLF) (LNG) to Crowley Maritime Corp. subsidiary Carib Energy LLC (Carib). The LNG will be delivered to Puerto Rico. This is the first delivery of LNG for industrial customers in that U.S. territory.

"We are pleased to work with Crowley to support industries in Puerto Rico with the delivery of cost-effective, emission-reducing LNG," said Stephen Cittadine, president of Pivotal. "Pivotal continues to expand its LNG portfolio, thereby reducing dependency on other petroleum products used by Puerto Rico as well as other U.S. territories.”

Recently the Federal Energy Regulatory Commission (FERC) issued an order to provide clarity around Pivotal’s methods of delivery of LNG from the U.S. mainland to U.S. territories. The FERC order confirms that Pivotal can sell LNG designated to be transported by waterborne vessel to all U.S. territories. To make this possible, Pivotal will load LNG onto international shipping organization (ISO) containers. The ISO containers will then be transported via truck to Crowley’s waterborne vessels in Jacksonville, Fla., and then delivered to Carib’s customers in Puerto Rico.

“Pivotal LNG is a proven leader in supplying LNG to the eastern United States, and we are certainly pleased to have them provide LNG for our markets in Puerto Rico,” said Crowley Vice President Greg Buffington. “Our LNG supply agreement with Pivotal, coupled with Crowley's recent success of obtaining a small-scale export license from the Department of Energy, allows us to meet the current and future energy needs of our customers in the regions where we do business.”

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crowley.com