LNG by Rail Opportunities

Small Scale: Energy Industry Eyes New Opportunities for LNG by Rail (Chron)
Sergio Chapa (June 23): Energy companies are eyeing exports to Mexico and other opportunities after federal officials approved regulatory changes that will allow shipments of LNG by rail… Jill Evanko, Chart CEO: “Rail typically has a fee per trip per car; highway is a cost per mile. Long highway runs often require a sleeper cab and two drivers. So in general our opinion is that LNG by rail is competitive with and more cost-effective than highway on longer distances.” With its George West plant next to a rail spur, Stabilis CEO Jim Reddinger said the company would add equipment to load LNG into railcars, if it lands enough contracts: “Railcars can shave delivery time and increase volume but they would work better if you can avoid switching yards. That’s where you lose time.” Caio Zapata, CEO of Mexico’s Enestas, said there is solid demand south of the border but Mexican officials must approve rail transport of LNG before exports can happen. (Mexico’s railcar regulations closely mirror those of the United States but governmental offices are maintaining limited business hours because of the pandemic.) Link to Content

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