U.S. project development company Sycar has reached an agreement with Air Flow USA for the temporal supply of ISO tank containers to start LNG distribution.
This agreement allows Sycar to start operations of LNG distribution after the Ministry of Non-Renewable Natural Resources of Ecuador granted the company approval to trade natural gas, LNG , and CNG for the industrial market in Ecuador.
The intention is to start introducing LNG to the industrial and other sectors which have given positive feedback of the future availability of LNG in the market, as an opportunity to reduce manufacturing and maintenance costs, drive down its carbon footprint, and improve the efficiency and lifespan of major equipment, Sycar said in its statement.
The resolution issued by the Ministry of Non-Renewable Natural Resources of Ecuador is good news for our project and a step towards the construction of the first LNG import terminal in Ecuador, which remains on schedule to start this year.
SYCAR is also in the process of procuring a fleet of company-owned ISO tanks to increase its distribution capacity to the industrial market.
To remind, Sycar is developing Ecuador’s first liquefied natural gas project will include a floating storage and regasification unit (FSRU). The FSRU will supply regasified LNG to an existing power plant as well as deliver volumes to an LNG truck filling station.
The Government of Ecuador previously approved FSRU operation and LNG import.
Sycar has also initially planned to reach financial closure on the project in early 2021, and kick-start production in 2022.
Once set up, the project will have an initial regasification capacity of 50 million standard cubic feet per day.