NEWS & UPDATES

Prometheus Energy to Participate in Pipeline Infrastructure Panel at Midcontinent LDC Forum in Chicago this Week

HOUSTON, Sept. 10, 2018 /PRNewswire/ — Prometheus Energy Group Inc. (“Prometheus Energy”), is a leading supplier of liquefied natural gas (LNG) to the natural gas utility, pipeline, industrial and oilfield services sectors. Prometheus Energy will lead a panel discussion on use of “distributed LNG” solutions to improve natural gas pipeline operations this week in Chicago at the LDC Midcontinent Forum (“Local Distribution Companies”).

Each year, LDC regional forums bring together all parties involved in the North American natural gas pipeline supply chain — pipeline transmission operators, local gas distribution companies, large commercial/industrial users of natural gas and all the companies that service these different segments. Growth of domestic shale gas production has been one of the most important developments changing the energy use and infrastructure landscape in North America.

Prometheus Energy will discuss how it safely brings mobile LNG supply and technical solutions to minimize the impact of pipeline outages for routine inspections, performing integrity management projects and facility construction. Additionally, many gas utilities and large commercial gas consumers are employing LNG solutions for extended duration to support pipeline gas supply due to unanticipated delays during new pipeline construction.

“The application of LNG for enhancing natural gas pipeline operations has been a key focus for our company over recent years,” stated Jim Aivalis, CEO of Prometheus Energy. “We work closely with all players in the natural gas supply chain to improve their service levels and reduce costs and impacts of pipeline interruption and curtailment. The LDC Forums provide unique access to all players in this critical segment of our national economy.”

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Newest Push to Ease Permian Bottlenecks: Use Gas to Power Drills

2018-07-31 10:00:00.2 GMT

Micro LNG plants opens way to truck natural gas to oilfields

It’s abundant, cheap and may slow down need to burn gas off

A truck loads up LNG at a site in Arizona.

By Naureen S. Malik
(Bloomberg) — It’s called micro LNG, and the concept is simple. By super-cooling natural gas, they can pack three times more of it into a truck, which may help the Permian Basin deal with its growing gas excess.

Liquefied natural gas is largely shipped in huge ocean-going tankers. Trucking it lets explorers power drilling operations with a fuel that’s abundant, accessible and cheap, saving them as much as 30 percent in costs versus diesel. An example: As many as five trucks, each carrying about 9,500 gallons of LNG, already trek as much as 400 miles a day in Colorado shale country to make deliveries there.

Next in line may be the Permian in West Texas and New Mexico, where filled-to-capacity pipelines threaten to curtail drilling for both oil and its byproduct, natural gas. Siemens AG and Baker Hughes are now in talks to build multiple small LNG production plants in U.S. shale centers, seeking to create a new outlet for natural gas at a time when drillers are urging regulators to let them burn it off into the air.

“A lot of creative work is going on to lower the wastage and environmental footprint that natural gas has in the absence of pipeline delivery,” said Ramanan Krishnamoorti, chief energy officer at the University of Houston.

While crude prices have risen, gas prices have barely budged nationwide and in the Permian they are trading at the biggest discounts to the U.S. benchmark since 2009. So producers to pipeline owners and services companies are looking to put gas to work to not only eat into that excess supply but cut costs and reduce methane emissions, a greenhouse gas contributing to global warming.

‘Lot of Activity’

“We are seeing a lot of activity in the Permian” with Siemens potentially installing 10 to 15 small modular LNG plants by the end of 2019, said Michael Walhof, director of sales for distributed LNG solutions, a division of Siemens.

Houston-based Prometheus Energy Group Inc. has been trucking LNG to producers in the Denver-Julesburg Basin for years, according to Chief Executive Officer Jim Aivalis. But as oil prices have risen lately so has demand, he said. Currently, the company trucks LNG to drillers from a small Williams Cos. plant in Durango and an Exxon Mobil Corp. plant in southwestern Wyoming, to the DJ Basin northeast of Denver.

“In that area of Colorado there are some very restrictive emissions requirements and there has been a lot of public outcry against the energy industry,” in part because of the number of wells flaring, Aivalis said in a telephone interview.

The LNG carried by Prometheus is chilled to minus 260 degrees Fahrenheit (minus 162 Celsius), then warmed back into gas before being used in engines made by Caterpillar Inc., Cummins Inc. or General Electric Co. for drilling operations, some of which can run on diesel and natural gas at the same time, according to Aivalis. The more natural gas they use, the bigger the savings, he said.

The attitude shift comes amid an Environmental Defense Fund study published last month that estimated that the U.S. oil and gas industry was wasting $2 billion a year through emissions of methane, the main component of natural gas, across the supply chain. Last month, Exxon Mobil Corp., Chevron Corp., Royal Dutch Shell Plc and BP Plc were among the energy producers discussing efforts to use gas as a cleaner, affordable power-plant fuel used in sync with renewables.

“You are seeing a millennial shift where people want to do the right thing,” Krishnamoorti said.

The economics too are increasingly favoring micro LNG. There are spots in the Permian basin where the price of gas is already negative, so producers are actually paying to “evacuate” gas, said Pablo Avogadri, global LNG platform leader at Baker Hughes. Instead of a salable asset for drillers, “gas is becoming an annoyance,” he said.

In the Permian, the first move toward LNG may come from the Delaware Basin in New Mexico, where Prometheus has been discussing options with potential customers, Aivalis said.

30,000 Gallons

Siemens started working on micro LNG four years ago, Walhof said. The small production plants they’re planning would chill 30,000 gallons a day, compared with the 4 billion gallons a day produced in terminals on the Gulf Coast for export abroad.

Meanwhile, Baker Hughes, the world’s third-biggest oilfield services company, has been receiving requests for proposals for Permian LNG projects that can make the fuel available within a 500-mile region, Avogadri said.

The company is studying the question, Avogadri said,adding, “we still need to crack the cost equation.”

Krishnamoorti, meanwhile, equates the challenges of building out the micro LNG plant industry to the launch of Apple Inc.’s cutting-edge iPhone. “The problem with micro LNG is that we are in the first 2,000 iPhones,” he said. “The more experience you get, the more you can drop the cost. ”

To contact the reporter on this story:
Naureen S. Malik in New York at nmalik28@bloomberg.net

To contact the editors responsible for this story:
Reg Gale at rgale5@bloomberg.net
Joe Carroll

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Prometheus Energy and National Grid Complete a Successful Winter Peaking project in Rhode Island

Houston, TX, – April 4, 2018 – Prometheus Energy Group, Inc. (“Prometheus Energy”), a leading supplier of liquefied natural gas (LNG) to the natural gas utility, pipeline, industrial and oilfield services sectors has completed a four (4) month long winter peaking service to augment National Grid’s distribution network in Rhode Island.

National Grid operates liquefied natural gas (LNG) facilities throughout New England and required a temporary LNG storage solution to supply LNG to an existing vaporizer this winter. The facility was operational from December through March to pump LNG to the vaporizer on demand in order to inject additional gas supply into their distribution network during cold winter conditions. Prometheus Energy has provided several similar virtual pipeline applications using LNG for winter peaking, integrity testing, existing pipeline reconstruction and bridging solutions in advance of pipeline connections. Prometheus Energy responded to the National Grid RFP with a unique equipment solution that was able to pump LNG at 750,000 scf per hour to meet the peak demand of National Grid’s network.

“We were faced with a dynamic challenge that required a specific equipment configuration as well as operational experience to complete the project. We selected Prometheus Energy based on these criteria and to provide a safe, reliable and professional service to meet our temporary peak shaving needs.” said Zachary Kinton, Lead Specialist of LNG Operations at National Grid.

“The combination of our proven equipment package and our extensive experience in winter peaking applications, provided National Grid with an effective temporary LNG facility designed to meet their winter demand,” stated Jim Aivalis, CEO of Prometheus Energy. “We worked closely with the National Grid team to ensure the project was designed, installed, and operated safe and reliably to meet the project requirements.”

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Stabilis Energy Announces Acquisition
of Prometheus Energy
Prometheus to Operate as Independent Natural Gas Distribution Subsidiary
of Stabilis Nationally; Stabilis to Focus on LNG Production Assets

Beaumont, TX, March 7, 2018 – Stabilis Energy (“Stabilis”) announced that it has completed the acquisition of a majority interest in Prometheus Energy (“Prometheus”). The acquisition combines two of the leading liquefied natural gas (“LNG”) production and distribution companies to form a full-service LNG provider capable of delivering LNG to customers in any end market and location in North America. Terms of the transaction were not disclosed.

Prometheus will operate as the independent LNG distribution subsidiary of Stabilis. Prometheus provides mobile and stationary LNG solutions to industrial, utility, pipeline, high-horsepower and other remote customers. Customer solutions include supporting utilities with natural gas via LNG for flow assurance to address gas interruptions, gas curtailments and critical peak demand during extreme conditions. Prometheus will continue to purchase LNG from multiple producers to optimize fuel cost for its customers.

“We are pleased to announce the acquisition of Prometheus Energy,” said Casey Crenshaw, CEO of Stabilis Energy. “Prometheus was a pioneer in the LNG industry and it remains the premier small-scale LNG distribution and service company in the world. We believe this transaction will allow each company to grow aggressively in LNG production and distribution, respectively.” Crenshaw continued, “Stabilis’ LNG production plants will continue to provide reliable and cost-effective LNG to all customers and distribution channels.”

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Prometheus Energy Group, Inc. Announces a Strategic Transaction Expanding its LNG Distribution Footprint in North America

Prometheus to Acquire Stabilis Energy’s LNG Distribution and Services Business for Customers Across North America Outside of Texas and the Gulf Coast

HOUSTON, Sept. 27, 2017 /PRNewswire/ — Prometheus Energy Group, Inc. (“Prometheus”), a leading supplier of liquefied natural gas (“LNG”) fueling solutions and services announced that it has signed definitive agreements to acquire Stabilis Energy’s LNG distribution and services business in North America outside of the Texas and Gulf Coast regions. The transaction further expands Prometheus’ ability to better serve customers in the gas utility, pipeline, energy, process and remote power generation markets. Included in the transaction, Stabilis Energy will acquire Prometheus’ 20,000 gpd LNG production facility in Lisbon, Utah. The terms of the transaction were not disclosed.

“We believe this further strengthens our platform providing LNG supply, distribution and technical services to customers across all of North America and specifically within the Rocky Mountain Region,” said Jim Aivalis, CEO and President of Prometheus. “This transaction allows Prometheus to focus on its core competencies of providing total natural gas fuel and delivery solutions to customers utilizing LNG or CNG.”

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