NDLNG Announces First LNG Production Facility in North Dakota

by North Dakota LNG, LLC  | Originally published at Rigzone.com

North Dakota GovernorWednesday, May 07, 2014 - North Dakota LNG, LLC (NDLNG), the newest member of Prairie Companies, LLC’s, portfolio of oil and gas service businesses, joined North Dakota Governor Jack Dalrymple and other state officials at an event Wednesday in the State Capitol Building to announce the arrival of a liquefied natural gas (LNG) production facility. Located in Tioga, North Dakota, the plant will be the first-to-market in the state to produce 10,000 gallons per day (GPD) starting in Summer 2014. A phase two facility is scheduled to be operational in the fourth quarter of 2014 and capable of producing 66,000 GPD. NDLNG targets the drilling, fracking and transportation sectors of the unconventional oil and gas industry and will help meet the need for a cost-effective power source by converting natural gas feedstock into value-added liquid fuels.

“North Dakota LNG is proud to announce it will be the first LNG liquefaction plant in operation for North Dakota,” said Patrick Hughes, chief executive officer at North Dakota LNG. “This historic venture will allow NDLNG to quickly provide oil and gas operators in the Bakken and across North Dakota with a cost-effective and reliable source of alternative fuel, thereby reducing operating expenses, while also creating new markets for value-added natural gas fuel produced in the State.”

“This is an exciting day for North Dakota. NDLNG’s state-of-the-art processing facility will play an important role in efforts to convert natural gas feedstock into value-added liquid fuels, foster more cost-effective unconventional shale development operations and support our nation’s desire to reduce its dependence on foreign fuel sources,” said Jack Dalrymple, governor of North Dakota. “We appreciate NDLNG’s investment in our state’s energy industry and support them in their venture to move North Dakota’s rich natural gas resources to market”.

Growing Demand and Market Opportunity

Currently, operators producing oil and gas from unconventional reservoirs in the Bakken face high fuel costs and environmental scrutiny from their use of diesel-powered equipment and flaring of natural gas generated by their drilling activities. Therefore, significant demand exists for locally produced LNG derived from North Dakota’s abundant natural gas reserves that will help operators not only reduce energy costs but also lower carbon emissions.

NDLNG will also offer North Dakota’s agricultural industry an alternative fuel choice to propane. Leveraging LNG will garner farmers and ranchers lower operating costs, reduced emissions, and the ability to use a 100 percent locally produced fuel.

“Speaking on behalf of the operator community in North Dakota, this is the type of innovative, entrepreneurial thinking we need to help meet our flaring capture goals in the Bakken … it’s a great idea," said Ron Ness, president of the North Dakota Petroleum Council.

Turnkey Fuel Solution

NDLNG has positioned itself as the first-in-the-market to provide a quick and cost-effective end-to-end solution to meet the demand for LNG. NDLNG will deliver significant benefits to its customers due to the company’s ability to:

  • Provide a local alternative fuel source to customers in the Bakken;
  • Employ a proven process able to produce a cost-effective and environmentally-friendly LNG fuel product; and
  • Leverage its relationship with Prairie Companies’ three growth-oriented businesses that support the oil and gas industry, including hauling, and water and fluids processing, giving NDLNG customers access to a completely integrated logistical system and further reducing transportation costs.

“Slawson Exploration Company supports the development of alternative fuel solutions such as LNG that will provide immediate cost relief for rig operations,” said Todd Slawson, president at Slawson Exploration Company, Inc. “We support NDLNG in this vital initiative and look forward to converting our rigs to utilize their LNG product.”

Project Management Contracts

Plum Energy, a pioneer and leader in the development of small-scale LNG value chains for industrial and transportation markets, will manage development of the project as well as initial operations of the LNG production facility. SST Process Solutions, led by a highly experienced management team, has been selected as the technology provider for the liquefaction equipment.

“We are delighted to assist in bringing cleaner burning, lower cost and locally produced LNG into the North Dakota market,” said Kirt Montague, Chief Executive Officer, Plum Energy. “Not only will this project materially reduce fuel costs for operators and other businesses in the State, but it also will meaningfully lower levels of harmful emissions, while providing long-term, wage-scale jobs and employment opportunities in the region.”

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