The Economics Of Switching From Diesel To LNG -- RBN Energy -- September 5, 2014

RBN Energy: the economics of switching from diesel to LNG.

The shift from diesel to LNG (and sometimes CNG or field gas) as a fuel for drilling rigs and hydrofracturing pump engines is underway, and there is interest in having ships, locomotives and long-haul trucks run on natural gas from LNG too.

But before investing in new or converted engines that can run on natural gas or on a diesel-natural gas blend, diesel and shipping fuel users need answers to three questions: What will it cost? How much will we save? And—this is important, too--is the LNG infrastructure sufficiently robust to support the switch?Today we explore the economic ins and outs of converting from diesel to gas, and describe the current state of domestic LNG supply infrastructure.

With US natural gas selling at roughly one-quarter the price of crude oil on a per-BTU basis, it is not surprising that major consumers of diesel (an oil-based fuel whose pricing is closely linked to crude) are exploring the possibility of switching to natural gas from LNG. As we said in our Series Opener on the domestic use of LNG, diesel engines that power drilling rigs, fracking pumps, locomotives and long-haul trucks can be converted to dual-fuel operation or replaced with natural gas-only engines, as can ship engines now fueled by marine distillate or bunker fuel.

LNG, produced mostly with modest-size (less than 200 Mgal/d) plants sited near major customers, is seen as a logical, cost-effective and consistent quality source of gas. LNG also stores several times as much gas per gallon volume as CNG (helping with weight and storage space).

But there are significant costs involved in making a switch, and even some risk—the biggest of which is whether, after making the investment to change to dual-fuel or all-gas engines, you can count on LNG to be available when and where you need it. To help sort out the economics and the risk, let us first look at what is involved in switching engines from diesel (or shipping fuel) to dual-fuel or all-gas.

I.N.C.R.E.D.I.B.L.E: 60-Stage Fracture Powered With LNG

Wow, there have been a lot of stories this morning. Busy, busy, busy.

And now this one. Rigzone is reporting:

Lafayette, La.-based Green Field Energy Services has successfully completed over 60 hydraulic fracturing stages on a well series in South Texas' Eagle Ford shale play using only liquefied natural gas (LNG), Green Field reported April 17.

The company had up to four turbine fracturing pump (FTP) units operating during each fracturing stage; each TFP consistently pumped five barrels per minute at a pressure of 7,500 pounds per square inch.

"We continue to push the envelope in the use of gas as a fuel source in pressure pumping," said Green Field Energy Services President Rick Fontova in a statement. "This application is yet another step closer to our soon-to-be-realized vision of using field gags to power our Turbine Frac Pumps."

Green Field has been using custom turbine technology to offer hydraulic fracturing pumps that can run solely and cost effectively on natural gas, including LNG and compressed natural gas.

Staying One Step Ahead of the EPA; A Fracking Story

Normally I just update an older post with new information but this is a pretty good story, so I will post it as an "original post" and link an earlier post, same story.

Link here to AP/Yahoo News.

Advances in hydraulic fracturing technology have powered the American natural gas boom. And now hydraulic fracturing could be increasingly powered by the very fuel it has been so successful in coaxing up from the depths.

Oil- and gas-field companies from Pennsylvania to Texas are experimenting with converting the huge diesel pump engines that propel millions of gallons of water, sand and chemicals thousands of feet down well bores to break apart rock or tight sands and release the natural gas trapped inside.

The earlier story was here.

First-Ever LNG-Fueled Hydraulic Fracturing Operation in North America: Eagle Ford, Ferus' LNG Division

Updates

January 20, 2013: the first post on this subject. 

Original Post

Link to Rigzone.com. 

The liquefied natural gas (LNG) division of Calgary-based Ferus LP successfully completed in October what the company believes to be the first-ever hydraulic fracturing operation utilizing liquefied natural gas (LNG) as engine fuel in North America.

Ferus' LNG Division was engaged by a major oil and gas service company in the United States to conduct the pilot project, which involved six dual-fuel 2,250 horsepower pressure pumper units, powered by LNG, to stimulate well performance in the south Texas Eagle Ford shale.

The dual fuel systems allow for natural gas and diesel to be consumed simultaneously with no decrease in performance, Jed Tallman, manager of market development for Ferus LNG, told Rigzone. Approximately 10,000 gallons of LNG was used in the pilot project, which took place in the southwestern portion of the Eagle Ford play.