Stabilis Energy LLC plans to build five LNG liquefaction facilities to service the high horsepower oilfield, marine, and rail fuel markets.
Stabilis has contracted Chart Energy & Chemicals to perform advance engineering for five LNG production plants for implementation in North America. Stabilis has selected Chart’s C100N and C250IMR standard LNG liquefaction plants, which produce 100,000 gallons and 250,000 gallons per day of LNG, respectively. Advance engineering will commence immediately.
Stabilis placed a deposit to secure a manufacturing space reservation with Chart, to ensure that the first LNG plant can be online in the 1st quarter of 2015 or before. Stabilis is still analyzing the data to determine the ideal location for the first plant. The location priority analysis will consider a number of issues including local gas supply and quality, regional LNG demand, as well as state and local permitting requirements and timelines. The four remaining plants are scheduled to come online at regular intervals throughout 2015 and 2016.
“Stabilis Energy believes LNG will be a major contributor to North American energy independence. High quality locally produced LNG is the only reliable, clean and efficient alternative fuel to diesel. LNG is proven to be the most cost effective fuel solution for high horsepower applications. Stabilis will supply off-road engine fuel requirements while supporting on-highway motor fuel markets with strategic distribution partners,” commented Casey Crenshaw, President of Stabilis Energy.
“Chart is very pleased to support Stabilis in their drive to implement LNG fuelling infrastructure in North America, and we are very pleased they have chosen Chart to provide the underlying LNG production plants. Our standard LNG plant platform provides Stabilis the ability to get LNG to market quickly, reliably and cost efficiently. We look forward to our ongoing relationship with Stabilis as their build out progresses,” stated Mike Durkin, President of Chart E&C.
Plans call for development to begin in 2013. Each plant will produce between 7,500 to 40,000 Diesel Gallons Equivalent (DGE) per day of capacity, subject to current and future contractual commitments. According to Joseph Farley, Director of Business Development, “We see a need for LNG and CNG as another important supply fuel to the Oil & Gas industry and service providers. Producers and Suppliers of Oil & Gas are looking for ways to cut their fuel cost and by switching to Natural Gas for their rigs, frac units and fleets they can save millions of dollars each year.
“AmericaCNG.Com,Inc along with their Strategic Alliance Partners(SAP) can convert the trucks, the frac units and the drilling rigs to run off CNG. Thigpen Energy, one of our SAP, is a field service company that specializes in the installation and operation of natural gas fueling infrastructure, be it CNG, LNG or field gas.
“Gas safety equipment, crew safety training and fuel reconciliation are all part of the Thigpen Energy solution. By utilizing our LNG processing, storage and transportation capabilities we will be able to wholesale the fuel, plus transport the fuel to each well site, regasify it back to CNG, and sell it to drillers, suppliers, service companies and converted vehicles…”
“We have the capability to turn around a project in about 180 days for the smaller units out in the field.”
Another SAP is Alternative Gas Processing Inc.. They supply wellhead gas processing equipment for methane and NGL’s, portable LNG fuel skids, and LNG and CNG transportation modules. Methane and NGL recovery at the well head can be accomplished with no out of pocket expense to the producer in specific targeted areas.
In response to Hurricane Isaac, EIA invoked its emergency-activation survey Form EIA-757B to collect daily data on the status of natural gas processing plant operations.
The survey, completed Friday, September 7, showed that Hurricane Isaac caused considerable disruption to processing infrastructure, although it had a negligible effect on natural gas prices because of ample onshore production and surplus storage.
The last time EIA invoked Form EIA-757B was for Hurricane Ike in September and October 2008. Hurricane Isaac made landfall on the evening of August 28, 2012, and ultimately disrupted natural gas processing operations for more than 10 of the 13.5 billion cubic feet (Bcf) per day of total processing capacity in the affected area. The survey captured plants with capacities greater than 100 million cubic feet per day.
The bar chart shows five items:
- Operational capacity (green): Sum of capacity of natural gas processing plants in the path of Isaac that was operating at normal levels
- Reduced capacity (yellow): Capacity that was processing gas at a reduced rate relative to pre-Isaac levels
- Ready to resume capacity (orange): Capacity that was able to process natural gas but was not currently receiving adequate volumes of gas from upstream to justify starting up the plant, or did not have a downstream delivery point able to accept its products
- Shut-in capacity (red): Capacity that was unable to process gas because of damaged plant infrastructure or power outages
- Maintenance capacity (brown): Capacity that was shut down for maintenance because of reasons unrelated to Isaac
Data collected on this survey are compiled with other data and used to provide critical information on the status of energy infrastructure to policy makers, emergency response teams, media, individuals, and businesses in the U.S. Department of Energy’s Situation Report.
Just prior to Isaac making landfall, there were 25 natural gas processing plants in the affected area that were not undergoing maintenance, accounting for 12.6 billion cubic feet per day of available processing capacity. However, widespread power outages (affecting nearly 890,000 customers in Louisiana), reduced gas flows, and the potential for flooding reduced or curtailed operations at many of these plants. Plants most commonly attributed closures to a lack of upstream supply, although a few also cited damage to downstream infrastructure that would receive their dry gas or their natural gas liquids products.
Processing facilities play a key role in the overall natural gas supply chain because they purify and “dry out” raw natural gas from producing wells. This process results in pipeline-quality natural gas for delivery to end-users and a mix of natural gas liquids products to be separated by fractionators.
The Department of Interior’s Bureau of Safety and Environmental Enforcement’s final update on the effects of Isaac on offshore oil and natural gas operations, released on September 11, 2012, indicated that less than 5% of Gulf of Mexico oil and natural gas production remained shut in.
The Federal Gulf of Mexico has accounted for a progressively smaller share of U.S. natural gas production in recent years. This is because of steadily declining offshore production volumes in the Gulf, combined with growth of shale gas production in various onshore basins and improved pipeline infrastructure to deliver that gas to market.
In 2000, Federal GOM gross natural gas production accounted for more than 20% of total U.S. gross natural gas production; in 2011, Federal GOM represented only 6% of total U.S. gross natural gas production. As a result of these historically low levels of offshore production, increases in onshore production, and strong natural gas storage stocks, Isaac-related shut ins have had little effect on natural gas prices or on gas supply for areas outside the path of the hurricane.