Last MileTM Fueling Solution
Phil Fusacchia, Program Manager
June 15 - 17, 2015 / EFI Gas Flare Reduction & Monetization Forum
What is Last MileTM
US CNG Partnership - Last MileTM Fueling Solution 50/50 Joint Venture-Operated by Ferus
Energy services, expertise in supply and delivery of natural gas products (CNG/LNG)
Natural gas expertise and solutions, capital and commercial investment
Reliable, fully-integrated natural gas fueling solution for E&P
Fueling the future of E&P operations Last MileTM Fueling Solution
1
2
3
1. Flare Gas Capture
Gas Treatment Gas Transport Gas Supply
• ~1-2 MMSCFD • 4 – 12 month
period
• >1500 1150 BTU • 500-1,100 MCFD
available for CNG • 2-4 GPM NGL’s
• Rig & Frac fuel • Gas Lift primer • 3rd Party Sales
• NGL Storage & Transport
• Locally marketed product
Eliminated
NGL
CNG
Sales Gas
1 2 3
Last Mile™ Flare to Fueling Turnkey gas capture service (Example)
2. Natural Gas Fueling
Natural Gas Rig Fueling
CNG Fueling Site Setup
9
2. Pressure
Reduction Unit
1. Space for 2
Tube Trailers
3. Gas
Distribution Unit
Gas Supply Line
CNG Fueling for Completions – Basic Equipment
• Equipment 1: Tube Trailers
• Equipment 2: Pressure Reduction Unit
• Equipment 3: Natural Gas Manifold
1
2 3
3. Natural Gas Networks
CNG Dual Use Station
Localized Natural Gas Networks
Point-to-Point
Developing Phase: Limited infrastructure and less
developed institutions
Hub and Spoke Integrated
Growth Phase: Anchoring networks around
large scale supply and demand
Mature Phase: Extensive networks, overlapping
networks
Benefits of using Last MileTM
Historical Diesel vs. Natural Gas
15
$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
US
D $
/BB
L
$/G
allo
n
Historical 2007 - 2015
Henry Hub vs. Brent
Henry Hub Spot Brent Spot
Commodity Component of CNG
Last Mile Flare to Fueling Emission Benefits
0
20000
40000
60000
80000
100000
GHG (Mass CO2)
CO2 Emissions
0
5000
10000
15000
20000
Smog (Mass O3)
Smog Emissions
0
1
2
3
4
5
Respiratory (Mass PM2.5)
Particulate Matter
55% reduction
98% reduction
97% reduction
Because the Last Mile approach to flare gas mitigation captures nearly all of the natural gas and natural gas liquids (NGL),
there are significant emissions reductions related to a standard NGL stripping unit and diesel fuel used for rig/frac activity:
Case Study
Flare gas capture site handles 2mmscfd, 30% of
volume becomes NGL, 5% of volume powers
system, 65% of volume becomes fuel or flared
(Comparison includes emissions for the equivalent fuel for 10 rigs or 2 frac fleets)
NGL stripping only & diesel for fuel
NGL stripping & natural gas for fuel
Three Things to Remember About the Last MileTM
• Eliminate Waste – Flare Gas
• Reliable Supply
• Economic & Environmental Benefit