Prairie Companies Unit Claims First-to-Market Production in Area
Plum Energy, SST, Hess Are Key Participants, Slawson the Lead User
‘Significant demand exists,’ says NDLNG, ‘for locally produced LNG.’ map courtesy North Dakota Petroleum Council.
North Dakota LNG promises summer start-up of the state’s first-to-market liquefied natural gas production facility, a 10,000-gallon-per day unit in Tioga, N.D., not far from the Montana and Saskatchewan borders. Phase two is to take production capability to 66,000 gallons per day in the fourth quarter.
Plum Energy is handling project development and initial operations, NDLNG says. Plum Energy, founded in 2011, is a small-scale LNG specialist headed by Kirt Montague, founder and former CEO of Prometheus Energy – a veteran supplier of LNG for high horsepower applications, including energy exploration and production.
SST Process Solutions is providing liquefaction equipment technology, NDLNG says, reporting too a contract with Hess for residue gas as feedstock for the Tioga LNG facility.
Slawson Exploration is the lead customer for the new fuel from NDLNG.
‘Cost-Effective and Reliable Source of Alternative Fuel’
NDLNG says it’s targeting “the drilling, fracking and transportation sectors of the unconventional oil and gas industry and will help meet the need for a cost-effective power source by converting natural gas feedstock into value-added liquid fuels.”
Plum Energy claims long experience in liquefied natural gas.
“This historic venture will allow NDLNG to quickly provide oil and gas operators in the Bakken and across North Dakota with a cost-effective and reliable source of alternative fuel, thereby reducing operating expenses, while also creating new markets for value-added natural gas fuel,” NDLNG and Prairie Companies CEO Patrick Hughes said in the Tioga plant release.
“We appreciate NDLNG’s investment in our state’s energy industry and support them in their venture to move North Dakota’s rich natural gas resources to market,” North Dakota Gov. Jack Dalrymple says in the NDLNG announcement.
“NDLNG’s state-of-the-art processing facility will play an important role in efforts to convert natural gas feedstock into value-added liquid fuels, foster more cost-effective unconventional shale development operations and support our nation’s desire to reduce its dependence on foreign fuel sources,” the governor said.
Slawson Exploration Is Converting Rigs
“Slawson Exploration Company supports the development of alternative fuel solutions such as LNG that will provide immediate cost relief for rig operations,” Slawson president Todd Slawson says in NDLNG’s Tioga plant release. “We support NDLNG in this vital initiative and look forward to converting our rigs to utilize their LNG product.”
Plum Energy explains the small-scale LNG value chain.
Slawson says that his firm operates six rigs in the Bakken, each consuming about 2,000 gallons per day of diesel. He expects to offset about half with LNG, for a cost savings of 20%. “We’re going to convert some of our drilling fleet if not all of our drilling fleet to LNG dual fuel,” he told HHP Insight.
“We like to be on the forefront of technology,” Slawson says, noting that his firm was the first to conduct horizontal drilling in the Bakken – in 1989.
“This is the type of innovative, entrepreneurial thinking we need to help meet our flaring capture goals in the Bakken,” North Dakota Petroleum Council president Ron Ness said in the NDLNG release. “It’s a great idea.”
“This project [will] materially reduce fuel costs for operators and other businesses,” said Plum Energy CEO Kirt Montague. “We are delighted to assist,”
NDLNG says too that it will offer North Dakota’s agricultural industry an alternative fuel choice to propane. “Leveraging LNG will garner farmers and ranchers lower operating costs, reduced emissions, and the ability to use a 100% locally produced fuel,” the company says.
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Source: North Dakota LNG/Prairie Companies with HHP Insight follow-up