AmericaCNG to Roll Out Solution to Associated Gas Production

Dallas-based AmericaCNG.com Inc. will begin offering in September a new service that allows natural gas liquids (NGL) and methane to be stripped from production at the wellhead. The company's new mobile, portable plants offer producers a temporary solution for dealing with NGLs and methane until the necessary pipeline infrastructure is in place.

Through a Y-grade extraction process, natural gas is separated at the wellhead from oil production, and the NGLs and methane are separated through two pipes. The NGLs are sold off and the producer paid on the netback, while the methane is converted to liquefied natural gas (LNG). The converted LNG can then be used to power drilling rigs, allowing producers to keep drilling at fields where no gas lines are available and still make money. That LNG can also be transported to a pipeline on behalf of the producer.

The company's skid-mounted LNG machines allow LNG in the field to be sold for $1/gallon, depending on individual company analysis, saving exploration and production companies millions each month in fuel costs, allowing them to drill with no flaring, according to a company presentation.

The company's strategic alliance partners construct the plants based on the gas analysis obtained from oil and gas producers.

"The volume commitment that we get from the oil and gas producers and the gas analysis will dictate the sizes of these plants," said Joseph Farley, director of global business development, in an interview with Rigzone.

Plant sizes can range from 5,000 gallons up to 100,000 gallons.

AmericaCNG can also build a LNG/compressed natural gas (CNG) station for companies interested. Once methane is converted to LNG, it can be taken to a LNG/CNG station and distributed. LNG is stored at minus 260 degrees; however, once it begins to warm up, it turns back into a gas and that gas can then be compressed and placed in CNG storage tanks. The company would need to have a commitment of 5,000 gallons per day in order to build a CNG/LNG station for larger fleet customers.

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Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

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