US company announces first CNG delivery contracts
Compressed natural gas (CNG) trucking and delivery firm NG Advantage LLC today announced that it has secured multi-year contracts with Pike Industries and Putney Paper for delivery of CNG, starting in early 2013.
NG Advantage delivers CNG to energy-intensive enterprises not connected to a pipeline, allowing these companies to realize the economic and environmental benefits of low-cost, low-emissions natural gas.
NG Advantage believes this is the first announcement of contracts for CNG delivered to enterprises beyond the pipeline in the US.
Presently, pipeline gas costs approximately 70% less per Btu than oil or propane. This price advantage is supporting American manufacturing and rapid job growth. However, companies not connected by pipeline have found themselves at an increasing competitive disadvantage.
NG Advantage compresses natural gas from existing transmission pipelines into specialized composite trailers. Customers use gas directly from the trailers, eliminating the need for onsite storage. Proprietary routing and monitoring technology ensures customer supply, regardless of usage fluctuations and efficient use of tractors, trailers and compressors.
CNG delivered by truck is a low-cost alternative to oil products for sites which use more than 150,000 gallons of oil or the equivalent each year, or 100,000 gallons seasonally.
Unlike liquefied natural gas (LNG), CNG is practical for medium-sized industrial and institutional customers, since it does not require expensive cryogenic storage at customer sites.
"A series of disruptive technologies have come together to make it possible for us to extend the benefits of natural gas beyond the pipeline," commented NG Advantage founder Tom Evslin.
"Horizontal drilling and hydraulic fracturing have dramatically driven down the price of natural gas in North America. Composite materials have led to the development of practical shipping containers for compressed gas. And modern communication lets us track trucks and customer usage in real time," Mr. Evslin said.
NG Advantage's first compressor station in Milton, Vermont will serve enterprise customers in Vermont, New York and New Hampshire. The company plans rapid expansion throughout the northern New England region and beyond.
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