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LNG America has announced an agreement with Buffalo Marine Service, Inc. (Buffalo Marine) to cooperate on the design of a liquefied natural gas (LNG) bunker fuel network for the U.S. Gulf Coast region.

LNG America is developing a hub-and-spoke delivery system for LNG as fuel for the marine market and other high horsepower applications. Ultimately, LNG America says it plans to establish a "robust delivery infrastructure to ensure the secure and safe delivery of LNG as fuel in major US ports".

Buffalo Marine is a leading bunkering company in the Gulf of Mexico with over 50 vessels dedicated to bunkering in the region.

"The agreement will incorporate Buffalo Marine’s logistical, commercial, and administrative expertise regarding bunkering operations with LNG America’s experience with LNG as fuel for high horsepower applications; understanding of the emerging demand for LNG as a bunker fuel; and overall business-development efforts related to LNG bunkering," LNG America said in a statement.

Keith Meyer, President and CEO of LNG America, said: "Combining the bunkering experience of Buffalo Marine with our LNG experience and our progress towards building the infrastructure necessary to support LNG bunkering will help us to provide the best possible service to the emerging LNG fueled marine customers while using the best safety practices available from both industries."

"Bunkering LNG in North America presents a unique opportunity for shippers—a cost effective, readily available, and extraordinarily clean fuel," stated Patrick Studdert, President of Buffalo Marine Service. "Our decades of bunkering experience in the region will mix well with LNG America’s LNG expertise in order to insure safe adoption and use of LNG as a marine fuel."

Image: LNG America barge.