Good morning. Thank you for this opportunity to provide remarks contributing to the Standing Committee on Natural Resources' cross-Canada benefits study of the Canadian oil and gas sector.
Ferus is a North American energy services company with headquarters in Calgary. Within the Ferus portfolio are two companies delivering integrated solutions to the energy industry for well stimulation, well completion, enhanced oil recovery, and natural gas fuelling solutions. Ferus's product lines include liquid carbon dioxide, liquid nitrogen, liquefied natural gas, LNG, and compressed natural gas, CNG, as well as the related logistical services.
In terms of our Canadian operations, Ferus employs 215 people. We own and operate three nitrogen plants and three CO2 plants in Alberta and British Columbia, as well as a fleet of 75 tractors and 135 specialized trailers and storage equipment to transport and store our products. Furthermore, we are about to commission the first Canadian merchant LNG liquefaction facility in northeastern Alberta in the town of Elmworth.
I will begin by briefly talking about our nitrogen and carbon dioxide business, and then move on to our natural gas fuelling business.
Nitrogen and/or carbon dioxide is injected into the well to generate better production and economics with lower environmental impact for conventional and unconventional gas and oil wells. In addition to improving well results, using N2 and CO2 benefits the environment through reduced water use, reduced disposal of recovered water, reduced well-pad size, reduced chemical usage and reduced CO2 emissions into the atmosphere. Our CO2 processing facilities recover waste CO2 from natural gas processing plants that previously would have been vented to the atmosphere. In all, Ferus CO2 facilities are capable of processing over 300,000 tonnes of CO2 per year. When carbon dioxide is used, approximately 30% is permanently sequestered underground, thus capturing a significant amount of this greenhouse gas.
Ferus's liquid nitrogen is produced by a simple physical process whereby air is cooled to a point where it turns into a liquid. The harmless byproducts from this process, oxygen and argon, are vented back into the atmosphere.
Ferus also has an emerging natural gas fuelling business with significant potential for growth across Canada. We provide end-to-end LNG and CNG fuelling services, including production, transportation, storage, and delivery to our customers in the oil and gas, mining, marine, and trucking industries.
Ferus was the first company in Alberta to integrate natural gas powered trucks into our fleet, and, as mentioned, we are nearing completion of the first Canadian merchant LNG production facility in northeast Alberta. The first phase of this facility will produce 50,000 gallons of LNG per day, which will be used primarily to fuel drilling rigs, pressure pumpers, and heavy-duty service trucks in the area. As demand grows, we will move into phases two and three of the project, ultimately producing 250,000 gallons per day of LNG. This represents a total investment of up to $100 million.
Ferus has also signed a joint venture agreement with ENN Canada, the Canadian subsidiary of China's ENN Group, to build two LNG liquefaction plants, one in Edmonton, Alberta, and the other in Chilliwack, British Columbia, each representing an investment of $200 million. These will primarily service the on-road trucking market, but also other high-horsepower applications.
Also relevant to Canada is our CNG joint venture with General Electric, whereby we are capturing flare gas, compressing it, and using it to fuel the operators' drilling rigs. This reduces wasteful flaring, saves money, and cuts greenhouse gas pollution. While this is a U.S. joint venture now, we see significant opportunity to apply this technology and initiative in Canada and are working now on making that a reality.
The key benefits of fuelling with natural gas are economic and environmental in nature. The significant price difference between natural gas and crude oil translates into a savings of 20% to 40% to the end user when using LNG or CNG in place of diesel fuel.
As a lower carbon emitting and cleaner burning engine fuel, natural gas produces 20% to 30% fewer greenhouse gas emissions and almost zero particulate emissions, contributing to significantly improved local air quality.
Furthermore, the natural gas fuelling industry represents a promising new market for Canada's abundant natural gas resource and reduces dependency on foreign [Technical Difficulty—Editor]