SOURCE: Zeus Development Corporation

Zeus Development Corporation

April 18, 2012 13:22 ET

Industrial Application Leading Uptake of LNG-Fuel, Zeus Conference to Review Marketplace

HOUSTON, TX--(Marketwire - Apr 18, 2012) - A review by Zeus Development Corporation has found industrial processes to be the area where LNG uptake is proceeding most rapidly. Zeus will hold three upcoming meetings on the subject: an LNG-Fueled Marine Seminar June 6-7, an LNG-Fueled Drilling Rig Seminar June 14, and its second annual World LNG Fuels Conference in January 2013.

"We're in a time of simultaneous low gas prices and high oil prices, so it's unsurprising that industrial users are switching to LNG," says Zeus analyst Tom Campbell. "Plus, some operators can also benefit from LNG's environmental and emissions profile, making it a real win-win." 

Usage in drilling and completion has seen the quickest uptake, with the roughly 2,400 rigs operating in the U.S. and Canada consuming between 600 and 1,500 gallons of costly diesel daily. Firms using dual-fuel technology like Encana have reported saving US$380,000 and reducing fuel costs by 47 percent. Others, like Cimarex Energy, have achieved an average of 50 percent displacement of diesel, allowing payback in 3 to 9 months. They and others like Chesapeake Energy have all expressed a desire to add rigs using natural gas to their fleet.

Replacing the U.S.'s roughly 1.42 billion gallon demand for liquefied propane gas (LPG) has also emerged as a market. Pivotal LNG has reported that with LPG recently selling for US$2.40 a diesel gallon equivalent compared to LNG selling for between US$1.50 and US$2.10, cost savings are immediate. The market also benefits from the relative lower costs of conversion to LNG for LPG technology.

LNG has also made inroads in stationary power applications in different industries throughout North America. The high fuel demand at operations like rural power generation has caused a small boom. Prometheus, an LNG provider that focuses on this space, reported at Zeus's 2012 World LNG Fuels Conference a growth of 250 percent in its deliveries, volumes, and revenues throughout 2011.

The 2013 World LNG Fuels Conference will be held January 23rd and 24th in Houston. Leading up to the conference, Zeus will host the following seminars:

LNG-Fueled Marine Advancements & Challenges, June 6-7: www.zeusintel.com/LFMAC2012

LNG-Fueled Drilling Rigs - June 14: http://www.zeusintel.com/LFD2012

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