Consider New Sources of Natural Gas Along With Other Fuels

We have all been reading about the low cost of natural gas over the last few months relative to #6 oil and some other fuels. Today I wanted to discuss the relative ease of installation and low operating cost for implementing a natural gas installation for some of the projects that we have been looking at especially those that have a 24/7/365 requirement which is relatively flat in load profile. What we have seen is annual and multiple year contracts that can be obtained for clients that become a real asset over the long term.

One of the benefits of natural gas is that there is a lower capital cost outlay during the set up of the project. This means that we can expect a faster return on invested capital as the project begins to produce energy whether it is electrical, thermal or a combineation of the two. The owners of many of these projects drive the market in a way that forces each and every one of us to watch every dollar, as well we should.

Many of you who say that natural gas is not in their region, want to know what to do about their facilities. After all, gas pipelines cost between one millioin and two million dollars per mile depending on the terrain and size. This is cost prohibiitive at best. The other option, is to truck LNG to the site in a special tank truck, off load the natural gas at that location, and use the fuel at that location. This has a relatively low initial cost and when cmpared with another fuel, such as #6 oil, makes excellent economic sense.

On top of that, natural gas is readily available in the United States  with decades of supplies available to us. Once again, I am not saying that natural gas is the only course that we should follow, but it certainly is one that provides a strong economic advantage for large users to move toward to enhance their bottom line.

Once again it is all about balance, and natural gas is one fuel that allows us to achieve that in many regions, even those without a gas pipeline. Why not consider that as an option?

It seems to us that a little thinking outside the box with respect to energy opportunities will reap real rewards.

Contact me at Wayne T. Bonhag, PE 603-448-5180 or wbonhag@bonhagassociates.com