BNSF Studying Feasibility of Natural Gas Processing Plant in North Dakota To Fuel Its New Generation Locomotives

Updates

March 5, 2013: The Wall Street Journal is reporting --

BNSF Railway Co., one of the biggest U.S. consumers of diesel fuel, plans this year to test using natural gas to power its locomotives instead.

If successful, the experiment could weaken oil's dominance as a transportation fuel and provide a new outlet for the glut of cheap natural gas in North America.

The surplus, spurred by new technologies that unlock the fuel from underground rock formations, has sent natural-gas prices plummeting. That has prompted industries from electric utilities to tugboat operators to switch to gas. If freight rail joins the parade, it would usher in one of the most sweeping changes to the railroad industry in decades.

Original Post

Huge story: at least two story lines.

Minot Daily News is reporting.

In on-going discussions with Gov. Jack Dalrymple, officials with BNSF Railway have indicated they are in the early stages of studying the feasibility of building a liquid natural gas processing plant and refueling station to power the company's next-generation locomotives.

Dalrymple is encouraging BNSF officials to build in North Dakota if the proposed project moves forward.