NG Advantage to Provide Compressed Natural Gas via “Virtual Pipeline” to International Paper in Ticonderoga, NY
April 22 2015 - 05:01PM
Business Wire
Service Is the Highest Volume Use of Trucked
CNG to Date in the US
NG Advantage LLC – a Clean Energy company (NASDAQ: CLNE) -
announced that it has signed a contract to work with International
Paper (NYSE: IP) to deliver compressed natural gas (CNG) to
International Paper’s Ticonderoga, N.Y. mill.
NG Advantage will deliver CNG to the mill using its Virtual
Pipeline which consists of compressor stations located on natural
gas pipelines, a fleet of specially designed carbon fiber CNG
trailers, and off-loading and monitoring equipment which NG
Advantage is installing at the mill. Deliveries will begin in May
of 2015.
International Paper initially awarded this contract to NG
Advantage in order to begin using natural gas prior to the
completion of a planned natural gas pipeline. However, as
previously announced, International Paper decided to cancel the
pipeline project for cost reasons.
Despite the cancellation of the project to deliver natural gas
to the mill by constructing a pipeline under Lake Champlain,
contributing to a cleaner environment and reducing fuel costs
remain very important to International Paper. The company has
issued a new RFP for a long term trucked-CNG contract, starting
when the current contract with NG Advantage ends. NG Advantage is a
bidder for the long term contract as well.
The mill is currently International Paper’s largest US plant
without access to natural gas. In order to meet this huge demand
safely and reliably, NG Advantage has invented the “Private Virtual
Pipeline”, a high volume variant of the Virtual Pipeline service,
which the company introduced to the US market in March of 2013.
Tractors and drivers will be based in Ticonderoga, NY – where the
mill is - and gas can be provided from any of several compressor
stations used by NG Advantage.
Clean-burning North American natural gas is expected to displace
at least 32,000 gallons of fuel oil a day during this contract. The
gas will be used to run the mill’s kiln and power boiler.
NG Advantage’s CEO Tom Evslin said “Because International Paper
is staunchly committed to their environmental goals, they have done
years of design work to extend a pipeline under Lake Champlain to
replace fuel oil with natural gas. They will now be able to convert
to burning natural gas even though the pipeline extension proved
uneconomical. We are proud to use our equipment, technology, and
experience to deliver the economic and environmental benefits of
natural gas using our “Private Virtual Pipeline” to the Ticonderoga
mill and to contribute to the economy of that region.”
NG Advantage was the first company to deliver compressed natural
gas to industrial customers in the United States and is the US
industry leader in volumes delivered. It is a US based
mid/downstream company which currently trucks CNG to 22 large
industrial and institutional customer sites in New England and New
York State. With its majority investor, Clean Energy Fuels, NG
Advantage is expanding its coverage area nationwide in 2015.
About NG Advantage LLC: NG Advantage is a US based
mid/downstream provider and the leader in the new “Virtual
Pipeline” industry of trucking compressed natural gas (CNG) in the
U.S. – bringing the economic and environmental benefits of North
American natural gas to large institutions and industrial customers
without access to a pipeline or on a pipeline without sufficient
capacity. The Company’s current customers include large regional
hospitals, paper mills, asphalt facilities, food processors,
industrial dry cleaners, LDCs, and manufacturing facilities. As a
result of the purchase of a controlling interest in the company by
Clean Energy Fuels (NASDAQ: CLNE), NG Advantage is expanding its
service area nationwide beginning in 2015.
NGadvantage.com
About International Paper: International Paper (NYSE: IP)
is a global leader in packaging and paper with manufacturing
operations in North America, Europe, Latin America, Russia, Asia
and North Africa. Its businesses include industrial and consumer
packaging along with uncoated papers and pulp. Headquartered in
Memphis, Tenn., the company employs approximately 58,000 people and
is strategically located in more than 24 countries serving
customers worldwide. International Paper net sales for 2014 were
$24 billion. For more information about International Paper, its
products and stewardship efforts, visit internationalpaper.com.
NG Advantage LLCMary Evslin802.760.1167 x506 (o)802.498.4674
(m)mevslin@ngadvantage.com
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