A natural gas liquefaction and fueling facility will be built and operated in north Baton Rouge by Waller Marine and Tenaska NG Fuels LLC.

The facility, being called Tenaska Bayou LNG, will be on the Baton Rouge Barge Canal near Devil’s Swamp, said David Waller, president and chief executive officer of Houston-based Waller Marine Inc.

Preliminary plans announced earlier had called for location of the facility in Port Allen.

The production plant will be on about 25 acres of Port of Greater Baton Rouge property and utilize another 60 acres optioned from adjacent landowners, said Karen St. Cyr, the port’s public affairs director.

Daily production of 200,000 gallons of liquefied natural gas, or LNG, and compressed natural gas, or CNG, should begin by early 2017, according to Waller and Tenaska, which is based in Omaha, Nebraska.

That production would be for high-horsepower marine, transportation, and natural gas and oil exploration and production industries in the region.

Construction, planned to begin in 2015, could last for 18 to 24 months and is expected to provide up to 100 jobs at peak.

The plant is expected to initially create about 30 direct and indirect full-time jobs.

The facility’s proximity to Interstate 10 and U.S. 190 allows easy access to the growing LNG-fueled heavy truck market while simultaneously providing clean-burning LNG to assist the marine industry in meeting stricter emission standards for vessels and helping to improve air quality regionally.

“Baton Rouge is a great location for this facility,” said Doug Lauver, vice president of LNG development at Tenaska. “It’s ideal for serving marine, trucking and industrial customers, and Louisiana and Baton Rouge have positive business climates.”

Lauver added, “The energy infrastructure to support the facility is in place, and a local workforce is available to build and operate the plant.”

“Waller Marine is pleased to team with Tenaska to bring this low-cost, domestic and clean-burning fueling option to the transportation industries in the region,” Waller said. “From this site in Baton Rouge, Tenaska and Waller Marine stand ready to assist the North American marine, transportation and high-horsepower industries transition to natural gas.”

The plant will have access to Class 1 rail adjacent to the property and tractor-truck fueling facilities for LNG-fueled trucks, as well as loading facilities for transporting LNG via tanker truck.

To facilitate marine industry access to LNG fuel, a dock will be constructed for the mooring of LNG bunker barges. All of these offload capabilities will provide for efficient delivery of LNG to customers, Waller and Tenaska officials said.

“Industry leaders see LNG as the most viable solution for complying with increasingly stricter shipping industry emission control requirements over the next few years, including inland river towboats plying the Intracoastal Waterway and carriers taking on cargoes from terminals on the Lower Mississippi River and other ports of entry throughout the United States,” said Taylor Norton, chief general counsel for Waller Marine.

Waller Marine is developing regional markets through its Waller LNG Fueling LLC subsidiary and will coordinate bunker barge design and construction.

Tenaska will provide funding for the project and will be the managing partner and commercial leader. It also will coordinate project development and construction and will be responsible for natural gas supply and commodity risk management. A Tenaska affiliate will operate the plant.

The companies are jointly marketing the alternative fuels.