NG Advantage announces first customers for natural gas
NG Advantage LLC, the national leader in trucking compressed natural gas, announced that it has secured contracts from two major corporations to begin the delivery of compressed natural gas (CNG) by truck in early 2013. The multi-year contracts allow these companies to realize both the economic and environmental benefits of lower cost, clean, North American natural gas even though they are not located on a natural gas pipeline. NG Advantage believes this is the first announcement of contracts for compressed natural gas delivered beyond the pipeline in the United States.
“We are thrilled to have Putney Paper and Pike Industries on board to start service early next year,” said Neale Lunderville, CEO of NG Advantage. “These companies are an important part of Vermont’s economy and natural gas will provide essential savings to keep them competitive into the future.”
Vermont Governor Peter Shumlin has championed the use of natural gas for its significant economic and environmental benefits. Access to domestic natural gas is an important component of the Vermont Comprehensive Energy Plan released late last year.
“I congratulate these groundbreaking Vermont employers on making the switch to compressed natural gas so they can lower their energy bills and grow more jobs,” said Governor Shumlin. “NG Advantage’s first-of-its-kind business will lead the nation as we work to reduce our dependence on foreign oil and lower carbon emissions.”
As oil and propane prices rise and uncertainty grows, energy intensive companies throughout the region which do not have access to the limited natural gas pipeline system are at a significant competitive disadvantage. NG Advantage is the national leader in developing a trucked compressed natural gas system to deliver the tremendous benefits of natural gas beyond the pipeline.
NG Advantage will compress natural gas off of existing transmission pipelines into specialized trailers, which are hauled to customer sites. Customers use natural gas directly from the trailers, so there is noneed for onsite storage.
Both Putney Paper and Pike Industries will displace oil by converting to cleaner, North American natural gas. Together, their conversions will eliminate more than 10 million pounds of carbon dioxide and 365,000pounds of sulfur dioxide from the atmosphere annually.
“Oil and propane cost and price volatility as well as the possibility of supply disruption are growing concerns to area employers. NGAdvantage offers northern New England and upstate New York businesses a more affordable and stable alternative,” said Lunderville.
The company is on track to begin service early next year. Putney Paper will be the first served and Pike Industries’ facilities will start service when asphalt plants open in the spring.
Putney Paper has been in business for over 50 years, employs 130 people at its Vermont facility along the Connecticut River and is a leading manufacturer of napkins, towels, and wrapping tissue made entirely from 100% recycled paper.
“We are excited about our partnership with NG Advantage,” said Frank Tarantino, CEO of Putney Paper Co. Inc. “Paper making is a very energy intensive process and conversion to natural gas will allow us to better compete in a global economy. Our competitors are located on gas pipelines and already have the natural gas advantage. Now we will have that advantage in Putney as well.”
“Putney Paper is deeply committed to producing high-quality, environmentally friendly products and converting to natural gas will help us reach our goal,” Tarantino continued. “The energy savings and environmental benefits of this deal make it a win-win for the company and the people of Vermont.”
Pike Industries, Inc. is part of Oldcastle Materials, Inc., which is the leading vertically integrated supplier of aggregates, asphalt, ready mixed concrete, and construction and paving services in the United States. In the region, Pike Industries employs 1000 people at its 40 asphalt plants and 20crushing facilities across Vermont, New Hampshire and Maine.
“Energy costs are a huge concern for our company as we work to deliver the highest quality paving and materials to keep the traveling public safe,” said Christian Zimmerman, President of Pike Industries. “This partnership represents an incredible opportunity to lower paving costs so that we can make the most of our very short construction season and continue to locate asphalt plants close to paving projects even if these areas are not served by pipelines.”
NG Advantage is well positioned to begin natural gas service in early 2013. The company has received approval from the Town of Milton and is beginning the Act 250 land use process for its first compressor site at theCatamount Industrial Park. The company anticipates breaking ground in earlyautumn and has already ordered the trailers and compressors needed for its first customers.
NG Advantage’s first compressor station in Milton will serve enterprise customers in Vermont and adjacent New York and New Hampshire. The company plans rapid expansion throughout the northern New England region and beyond. Compressed natural gas delivered by truck is a low cost alternative to oil products for sites which use more than 150,000 gallons of oil or the equivalent each year or 100,000 gallons seasonally.
About NG Advantage LLC
NG Advantage LLC is the first announced compressed natural gas (CNG) distribution service in the U.S – bringing the economic andenvironmental benefits of North American natural gas to customers without access to a pipeline. With key customer contracts signed, equipment ordered, regulatory agreements in place and construction permitting well under way, NG Advantage expects to begin deliveries in early 2013 to customers in Vermont, New Hampshire and New York from its first compressor site and will add new sites starting later in 2013.
NG Advantage compresses natural gas from an existing pipeline into specialized containers and delivers it via public highways directly to large industrial, commercial and institutional users providing them with cheaper, cleaner and safer fuel. NG Advantage saves customers 20-40% on energy bills annually, reduces their CO2 emissions by 26%, and virtually eliminates harmful pollutants like sulfur dioxide and nitrous oxides
Source: Milton, VT – NG Advantage LLC 8.15.2012 www.ngadvantage.com