No Pipeline, No Problem: How Utilities are Reaching New Customers With Less Groundwork
Progressive players in the utility space are making big moves in natural gas through innovative and unconventional supply chains to transport the fuel over land, rail and sea to meet previously unreachable customers. An array of customers and high horsepower applications not connected to traditional pipeline infrastructure are now being served by natural gas.
Remote utilities, power producers, mining operations, large industrial customers, and other applications are increasing their use of natural gas thanks to increasingly sophisticated and proactive players in the utility market.
In some cases, natural gas is being delivered at a more competitive price than other fuels like diesel, even in a low petroleum price environment. In other cases, the price of traditional fuels is irrelevant as innovative natural gas supply chains are meeting important environmental, safety and/or operational needs. The examples are many, and future opportunities limitless.
Some of the leaders in this space include:
- AGL Resources/Pivotal LNG – AGL Resources has been one of the most successful utilities in North American in leveraging its LNG peak shaving assets to build and grow the market for this clean fuel in the Southeastern United States. Through its wholly owned subsidiary, Pivotal LNG, the utility has been a North American leader in the development of the on-road truck, commercial marine and other HHP markets. AGL’s Pivotal LNG unit is supplying LNG from Macon, Ga. for Florida, where it’s being used for truck-to-ship bunkering of TOTE Maritime’s two new LNG-diesel dual fuel container ships at the Port of Jacksonville. The Marlin-class ships make weekly runs from Jacksonville to San Juan, Puerto Rico.
- FortisBC – The Western Canadian utility is supplying liquefied natural gas to a growing number of customers operating in a variety of applications. From regional on-road trucks, to several ferry companies, mining operations, remote utility and power applications and more.
- Gaz Metro – Like its utility colleagues in the west, this Eastern Canada utility is supplying LNG to a wide range of customers and sectors, including a state-of-the-art power generation project at a diamond mine; a growing ferry fleet in Quebec, and large commercial bulk ships that will operate in the Great Lakes.
- Pacific Gas & Electric – The California utility is using a large and growing asset base of LNG and CNG delivery equipment to maintain downstream service during times of pipeline maintenance and integrity testing, with some tests running for several weeks at a time.
- Longview Power – The Virginia-based power generation company has incorporated LNG into its operations for coal-fired power plant startup and load changes. Longview Power has been using large-scale LNG storage and vaporization equipment to delivery large volumes of natural gas to the electric generation plant. This approach, together with other advanced technologies, has allowed the Longview facility to become the most efficient and cleanest coal-fired plant in the region – if not North America – while also delivering reliable and low cost electricity to its customers.
- Southern California Gas – Southern California Gas and CR&R Environmental have begun construction on an eight-inch pipeline that will bring carbon-neutral renewable natural gas (RNG) into SoCalGas’ distribution system for the first time. The pipeline project is funded by CR&R Environmental and will connect an existing SoCalGas pipeline to a new CR&R anaerobic digestion facility in Perris, CA, that is expected to come online in early 2017. RNG from the facility will be used to fuel 900 of CR&R’s waste hauling trucks. SoCalGas also engaged into a contract with Onboard Dynamics to test an innovative mobile natural gas compressor capable of fueling CNG vehicles.
To hear about the broad range of market development opportunities for natural gas utilities, join us at the High Horsepower (HHP) Summit, which will take place November 6-9 in Jacksonville, Florida.
Join us for the 2017 Natural Gas for High Horsepower Summit to gain insight on:
- Innovative supply chain solutions that are being developed and implemented from the northern Yukon territories to the Caribbean to support projects well beyond the reach of a traditional natural gas pipeline
- Recently identified opportunities to deliver LNG to 23 power generation and 58 industrial customers in Canada’s North, projects that will result in $2.1 billion in cost savings and more than 11 million tonnes of CO2 emission reductions
- Insight from end-users on the challenges, benefits, and considerations associated with the development of an off-pipeline natural gas remote power generation and industrial projects
- How ongoing environmental regulations, carbon programs, and sustainability initiatives will continue to drive investments in natural gas technologies across the marine, rail, mining, E&P, and off-pipeline industrial sectors
- An overview of the progressive and comprehensive training programs being implemented to ensure personnel safety and achieve operational success and maximum project results
- Efforts to supply lower carbon LNG to the HHP market via innovative LNG production plants powered by renewable energy and the use of renewable natural gas (RNG) sources
“HHP Summit is excellent for networking — consultants, suppliers, engineering firms. It’s been very good for us.”