KATE Energy Holdings Inc. has entered into a long-term master services agreement with Ferus Natural Gas Fuels Inc. (Ferus NGF) to secure LNG from the Dawson Creek LNG facility under KATE Energy's LNG off-take agreement.
This agreement will provide both KATE Energy and Ferus NGF clients, including Yukon Energy Corporation (Yukon Energy), a cost-effective LNG fuel solution delivered from Canada's northernmost LNG facility.
Ferus NGF and Yukon Energy entered into a four-year contract for the supply and delivery of liquefied natural gas ("LNG") for power generation in Whitehorse , Yukon . In effect since January 1, 2020 , the contract was the result of a competitive tender process in the fall of 2019 that saw KATE Energy and Ferus NGF enter a "co-bid," led by Ferus NGF.
"We believe this four-year agreement with Yukon Energy validates the ever-increasing need for remote communities and industrial operations to replace diesel and other distillates as power and heating fuels," says Thomas Elwell , CEO of KATE Energy.
LNG is the cleanest fossil fuel, producing 30 per cent less greenhouse gas emissions than diesel and virtually eliminating hazardous particulate matter. LNG has other environmental benefits as well: it is noncorrosive and nontoxic, and if spilled, it immediately dissipates, leaving no contamination behind.
"The collaboration between KATE Energy and Ferus NGF showcases how uniquely positioned, Western Canadian energy companies can work together to service the ongoing needs of larger communities in an efficient and effective manner," says Elwell. "This is an important step toward providing a cleaner, more cost-effective power and heating solution to communities and industrial operations in remote Canada for years to come. As an early adopter, Yukon Energy proves that domestically distributed LNG and power generation can be a successful and sustainable model to power the North."
About Kate Energy Holdings Inc.
Incorporated in Calgary, Alberta in 2016, KATE Energy Holdings Inc. ("KATE Energy") is a privately held, client site-specific Power Producer, providing industrial operations, First Nations and Métis bands, and other communities with more affordable and cleaner electricity and heat. In addition to power production, KATE Energy provides Liquefied Natural Gas ("LNG") based fuel services to other utility-based power producers, managing the procurement or production of LNG fuel and its distribution supported by key industry partners such as Ferus NGF.
SOURCE KATE Energy Holdings Inc.