THE SOURCE - Summer 2016 - (Page 10)

feature Expanding Your Network Through the Virtual Pipeline O By rich Kolodziej, NG Advantage LLC ccasionally opportunities arise to serve new industrial or institutional customers that are located beyond your existing pipeline and infrastructure. Prospective customers could be situated in a large industrial park that you want to help become more competitive and ensure existing jobs are not lost to companies forced to relocate. You may also want to attract new businesses to a large, underutilized industrial park that did not previously have access to compressed natural gas (CNG), thereby creating new jobs within your community. Now, there is a new option available to assist with the servicing of these customers without the costs associated with extending expensive, high pressure pipes and the worry of delays caused by the concerns of activists. This option is referred to as a virtual pipeline. Working in conjunction with a virtual pipeline service provider, you can build an isolated network of low pressure pipes in a remote location that connects several large facilities and creates a gas island. Given sufficient pressure and capacity, the virtual pipeline service provider will purchase gas from your system or from a local transmission line. The provider then builds a compressor station, compresses the gas, and 10 THE SOURCE | THE vOICE and CHOICE Of pUblIC gaS purchases a fleet of tractor-trailers to deliver it to the gas island that you have built. most virtual pipeline companies require a substantial minimum volume of gas usage to support the construction of a new compressor site. In addition, an onsite offloading station is then built by the virtual pipeline service provider at the entrance to the new network to decompress the gas and feed it into your new system. The new customers are yours. You bill them and pay the virtual pipeline provider for transport and the gas if they had to purchase it from another pipeline. If in several years, you extend high pressure pipes all the way to the gas An offloading station at a customer site

Table of Contents for the Digital Edition of THE SOURCE - Summer 2016

First Person
APGA Events
Expanding Your Network Through the Virtual Pipeline
Major Mergers
Q&A: Barry Russell
The Very Different Field of Commercial Foodservice Research and Development
Can Natural Gas Stay Cheap Forever This Time?
Home Fueling for Natural Gas Vehicles
Legislative Outlook
The Pipeline
Marketing Matters
Advertisers’ Index/
At Last

THE SOURCE - Summer 2016