CB&I to build two LNG storage tanks in Wisconsin

The Ixonia LNG facility will be built in Jefferson County, Wisc.

We Energies, a Wisconsin-based public utility, has hired McDermott’s storage business, CB&I, to build two liquefied natural gas (LNG) storage tanks for peak shaving facilities in southeastern Wisconsin.

Both facilities, slated for construction in Bluff Creek and Ixonia, Wisconsin, will each have the capacity to store twelve million gallons of LNG and will be accompanied by an above-ground water storage tank for fire protection, McDermott said.

“Demand for natural gas fluctuates daily and seasonally,” said Cesar Canals, senior vice president of CB&I. “By storing LNG when demand is low, energy companies can ensure adequate supply when demand is at its peak—which are normally the coldest days of winter in Wisconsin.”

“CB&I built the first LNG peak shaving facility in North America which is still in operation today,” Canals said. “Its construction dates back to 1965 and is a testament to the quality and longevity of performance that you can expect from facilities designed and built by CB&I.”

Mechanical completion is expected in the fall of 2023—in advance of the winter peak heating season, McDermott announced.

The Bluff Creek LNG facility will be constructed in Walworth County, Wisconsin in the town of LaGrange. The plant will be about 4.5 miles southeast of the city of Whitewater and about 5.6 miles northwest of Elkhorn, Wisconsin.

The Ixonia LNG facility will be built in Jefferson County, Wisc., in the town of Ixonia. The plant will be about 5.7 miles southeast of Watertown, Wisc. And about 3.3 miles northwest of Oconomowoc, Wisc., We Energies said.

Southeast Wisconsin needs additional natural gas supplies to economically heat homes and business in the region, We Energies said. In 2020, the company submitted a proposal to the Public Service Commission of Wisconsin (PSCW) to construct and operate to LNG storage facilities to boost the reliability of natural gas in the region. The company said it would save gas buyers money in the long run and would make the region less dependent on gas from interstate pipelines.

In late 2021, the PSCW authorized construction of the two projects.