Why an LDC Would Want to Do Business With NG Advantage

download report

Transcript Why an LDC Would Want to Do Business With NG Advantage

How Does It Work
1. Compressor site on pipeline
4. Empty trailers return for refilling
2. Delivered in composite containers
3. Customer Off-Load Station
Building in partnership with one of T Boone Pickens’ companies,
Clean Energy Fuels
Hexagon Lincoln TITAN trailer ready for delivery by hauling partner, J.P. Noonan
Asphalt plant
Operational Q2 2013
Dispatcher 24/7
NG Advantage’s Customers:
Paper Industry
NG Advantage’s Customers:
NG Advantage’s Customers:
Gov. Peter Shumlin & ex-Gov.
Jim Douglas
LT. Gov. Phil
Miller, Sec. of
Economic Dev.
Asphalt Plants
Paper Mills
SCADA tools for knowing
◦ when trailer is full
◦ when to start filling
◦ when to switch over to 2nd
Telemetry on trucks &
Telemetry to monitor
customer site
Video to monitor and
help drivers
$5MM per compressor
$500,000 trailers
Fully filling trailers in heat
and cold
Routing trailers so they
get to customers “just-intime”
Fully emptying trailers
Multiple sources of gas
Relationship with trucking
Pipeline and Gas Journal - March 2014
A 24 inch diameter pipeline extension costs $100,000.00 per inch-mile or $2,400,000.00 per
“Gas pipeline cost per inch-mile
The cost of building natural gas pipeline(1) infrastructure varied between $30,000 and $100,000 per inchmile(2) from 1993 to 2007 (Figure 8), according to the study. Through 2004, increases in pipeline construction
costs were generally modest. After 2004, however, costs began to escalate dramatically, nearly doubling
previous levels by 2006. This was due, in part, to high world commodity prices, especially the price of steel.
Costs have declined recently and the several year cost run-up is expected to only be temporary. Since all
three cases have similar GDP assumptions, input costs are assumed to be the same in all cases. Construction
costs are projected to decline through 2010. After 2010, costs resume a general upward pattern consistent
with the pre-2004 cost trends, which are slightly less than the assumed future inflation rate of 2.5 percent per
The study finds the cost of pipeline construction is divided roughly equally between materials, labor and
miscellaneous. In 2007, materials costs accounted for over 35 percent of total costs, but have since
declined. The miscellaneous category includes engineering, surveying, administration, and environmental
costs. Costs for right-of-way account for 8 to 9 percent of total construction costs. This component has
recently increased at a slightly faster rate than the other components. It is projected that the labor and
right-of-way components will grow slightly faster than the other components, as skilled labor remains a
premium commodity and pipeline permitting and siting continue to increase in complexity. The cost of
materials is projected to increase at a rate slightly less than inflation and account for about 25 percent of
total pipeline construction costs by 2030.
In all cases, cumulative transmission pipeline expenditures are similar through 2012, but they diverge
thereafter. Considering the time required for pipeline planning, permitting and construction, it will take a
few years before policy shifts such as those assumed in the High Gas Growth Case and the Low Electric
Growth Case affect natural gas infrastructure investment. Pre-2012 pipeline infrastructure projects are
already in advanced planning or already under construction, so they are not likely to be affected much by
policy changes.”
• Pipeline extension planned for 3 years
• Keeps company viable until pipeline
• Customer will convert its burner/boiler
• Customer will be ready when pipeline
• Customer will have relationship with
the LDC now
• NG Advantage leaves when pipeline
Together We can Serve
a “Stranded” Cluster For a Lot Less
 LDC puts in assets: pipes, one access point & meter
 LDC sells interruptible contract to companies, installs meters at
each facility
 LDC owns customers
 NG Advantage trucks CNG 24/7
 Customers have political stake in future pipeline extension to save
more $
 When pipeline arrives
 Customers – no change but save more money
 LDC – bills as usual, conversions already done
 NG Advantage - leaves
Together We Can Serve
a Community for a Lot Less
Community or center of town must have:
◦ Large anchor tenants
◦ Small businesses & residential
◦ Existing pipes or LDC can install (capital expenses better
for rate of return) to each customer
◦ One point of entry and meter for NG Advantage
◦ Individual meters for each local customer
◦ Will 20% add on apply to new customers like these?
◦ Will the PUC need to approve them paying a different
rate than other customers?
◦ Source of backup fuel ? Maybe central heating plant
Sign a huge facility or gather
enough smaller ones ie:
industrial park
Install infrastructure
Provide one point of entry to
gas network or a heating plant
Sell to all customers
Train and convert all customers
Petition for a new CNG rate
class – NG Advantage’s cost
built into distribution rate
LDC invest in NG Advantage’s
infrastructure, compressor
station or trailer
OEM NG Advantage
If large enough, NG
Advantage will:
Build a compressor
station or truck from an
existing station
Provide tractors and
Build Off-Loading
Station at LDC’s point
of entry location
Sell to customers, let NG
Advantage provide the delivery
Back To The Future
Montpelier, Rutland and St.
Johnsbury, Vermont
 Pipes to each business
and residence
 One access point for
 Delivered by train
 Today bio mass steam to
each downtown business
& State office buildings in
Burlington, VT (MGP)
 Methane to each
residence and business
 Coal arrived by barge
to gasification plant
Municipal Propane
Municipal Methane
How Does It Work
1. Compressor site on pipeline
4. Empty trailers return for refilling
2. Delivered in composite containers
3. Customer Off-Load Station
NG Advantage LLC
P.O. Box 817
Milton, VT 05468
802 760.1167
Mary Evslin
VP of Marketing