‘We Turned the Flaring Problem into an Opportunity’
And ‘More of the Unconventional Gas Can Be Monetized’
Argentina’s Galileo Technologies released details today about Terra Energy’s use of a Cryobox Nano small-scale liquefied natural gas unit to produce 7,800 to 8,500 gallons of fuel per day in North Dakota.
“This is a complete solution,” Terra Energy president Dustin Hancock says in a Galileo release. “We turned the flaring problem into an opportunity.
“The technology supplied by Galileo allows us to significantly reduce the waste of flaring using that energy to produce additional oil and gas,” he said.
‘Fully Modular, Electric Driven and Reliable’
Galileo engineered a ZPTS gas conditioning system and the Cryobox Nano to produce a usable fuel. Spatco Energy Solutions, one of Galileo’s distributors in North America, placed the equipment.
“The equipment is fully modular, electric driven and reliable when operating under the harsh conditions of North Dakota’s oil fields, which are home to frigid winters and scorching summers,” today’s announcement states.
The LNG is obtained from a well pad owned and operated “by one of the largest producers and holders of natural gas reserves in the U.S.,” Galileo says, less than 50 miles from the sites where it is consumed. The resulting cryogenic fuel is used for drill rig power generation and frack water heating.
Too Much Has Been Flared
“The abundance of shale and tight gas in certain regions, such as Bakken in the U.S. or Vaca Muerta in Argentina, increases the relevance of natural gas as a source of clean energy,” said Galileo Technologies CEO Osvaldo Del Campo.
“However,” he said, “the dispersion of shale gas sources in these isolated areas can make the laying of gas-gathering lines economically unsustainable and creates an environmental problem…
“In recent years and due to this barrier, more than 25% of the natural gas produced in North Dakota has been flared rather than sold to customers or consumed on-site,” Del Campo said. “We believe that more of the unconventional gas can be monetized through methods such as the ‘Distributed LNG Production’ solution we developed for Terra Energy.
‘A Means to Master Their Challenges’
“When long distances are involved, our ultra-compact gas conditioning and liquefaction modules allow us to distribute clean natural gas, affordably and without pipelines,” Del Campo said. “This technology facilitates the collection of fuel from scattered sources and its distribution to consumers, applying road distribution logistics similar to those of other liquid fuels.”
“As gas capture requirements continue to ramp up, expecting to reach 90% by 2020, Galileo’s liquefaction technology will give the upstream oil and gas sector a means to master their challenges with profitability,” Spatco Energy Solutions president and CEO Jeff Dailey says in the Galileo report.
“The industry is experienced in the use of compressed natural gas (CNG) to reduce flaring, so LNG represents the advantage of cheaper distribution, beyond 100 miles,” he said.
“LNG just makes more sense if we consider that the industry needs to fuel high horsepower applications at remote locations, such as rigs, frack crews, heavy duty trucking and railways,” Dailey said.
Sale of the Cryobox Nano unit for the Bakken was first disclosed at HHP Summit 2014 in New Orleans (HHP Insight, October 22, 2014).
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Source: Galileo Technologies with HHP Insight follow-up