Applied Natural Gas building new LNG plant to serve US industries

LOS ANGELES, Sept 25 Wed Sep 25, 2013 6:29am EDT

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LOS ANGELES, Sept 25 (Reuters) - Liquefied natural gas (LNG) producer Applied Natural Gas Fuels Inc on Wednesday said it plans to build a plant in Texas to supply LNG to industries like rail and trucking that want to reduce reliance on more-expensive diesel fuel.

The plant will consist of up to five liquefiers, each with a production capacity of 86,000 gallons per day, Applied said in a statement. The privately held company has secured land south of Dallas in Midlothian, Texas and is in the permitting process.

Applied said it expects the plant to be operational in mid-2015, sharply boosting the company's production capacity to more than 600,000 LNG gallons per day. The company currently produces 86,000 gallons per day at its Arizona facility.

New drilling techniques unlocking vast reserves of natural gas from shale have produced a boom in U.S. supplies and driven prices down sharply. Many industries have become more interested in using liquefied natural gas as a primary fuel.

Applied Natural Gas, based in Westlake Village, California, is currently doubling the production capacity of its LNG plant in Topock, Arizona. The plant's second liquefier is scheduled to come online in July of next year, and will bring the company's production capacity to about 170,000 LNG gallons per day. (Reporting by Nichola Groom; Editing by David Gregorio)

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