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Gulf Oil plans LNG facility in Great Bend

Brendan Gibbons | Times-Tribune

An oil company with Pennsylvania roots plans to have a liquefied natural gas plant up and running in Great Bend, Susquehanna County, by the end of 2015.

The plant would accept natural gas from Williams’ Windsor-Montrose-Washington gathering line and compress it for storage and delivery as a liquid, according to a petition the company, Gulf Oil Limited Partnership, filed with the Federal Energy Regulatory Commission in April.

The plant would produce 100,000 to 300,000 gallons of liquefied natural gas per day, the petition states, using electric compressors. Its target markets are operators of drilling rigs and hydraulic fracturing truck fleets who want to run their equipment on natural gas instead of diesel fuel.

The gas would also go to storage facilities operated by utility companies. These plants, known as “peak-shaving plants,” store excess gas until periods of high demand, according to the U.S. Department of Transportation.

Efforts to reach Gulf Oil representatives were unsuccessful.

On Thursday, FERC issued an order stating the project does not fall into its jurisdiction because the project would not involve shipping gas through an interstate pipeline.

Gulf Oil, founded in the early 1900s during the Texas Oil Boom with financial backing from by Pittsburgh banker William Larimer Mellon, merged with Chevron in 1984 in what was then the biggest corporate merger in U.S. history, according to the New York Times.

Its current incarnation is a joint venture between Massachusetts gas station and convenience store chain Cumberland Farms and Catamount Petroleum LP, according to a company history on Gulf Oil’s website. The partnership is based in Framingham, Mass.

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