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Stranded Natural Gas Purchase Agreements

3,830 Views | 22 Replies | Last: 4 yr ago by texpert68
AggieTravis12
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AG

I have been working with a startup that has processes that will allow them to produce a revenue stream from natural gas that can is otherwise flared. The flaring is done as a lack of pipelines exist or they have no space since the price of gas to oil is so low.

This company would simply be wanting to sign an agreement to take the gas off of the hands of the drilling or midstream company and setup a small operation in proximity. I cannot disclose the processes they have to create the revenue.

What would be the best way to get in contact with a person who would be willing to negotiate amounts and pricing on natural gas? I've heard in the past they've taken a loss on it just so wells wouldn't have to be shut in, so this would solve their issue.
Stan Crowch
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AG
Are you hoping to use flared nat gas to mine bitcoin?
AggieTravis12
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This article claims "Unfortunately, the analysts found that the operation would likely lose money in the short-term and that the Bitcoin price would need to average nearly $19,000 over the next 15 years to make the venture profitable."

https://www.ccn.com/pipe-dream-analysts-mull-natural-gas-powered-bitcoin-mining-operation
AggieTravis12
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AG
And we know it's not near that price level
Ragoo
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AG
What is the product?
Ragoo
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AG
So you want to use infrastructure that doesnt exist to alleviate a problem where infrastructure doesn't exist?

That isn't a solution.
AggieTravis12
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I'm not looking to get into the viability of their model ,simply asking if there was a normal contact point for a person who would be willing to talk numbers on the sale of that gas
topher06
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The normal contact is going to be the marketing department. That gas is probably already committed for sales so the bitcoin mining probably will violate in place contracts.
sts7049
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AG
there are a few legit technologies for stranded gas wells. we've done a micro lng project and are looking at one with a compression system to transport gas in trucks to a sales point.

anyway the contact probably depends on the company. maybe C&P?
AggieTravis12
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I've heard of a compression system through a company called GTUIT, is that the kind of processes you're talking about?
Ragoo
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AggieTravis12 said:

I've heard of a compression system through a company called GTUIT, is that the kind of processes you're talking about?
these are just trailer mounted, temporary MRU packages for processing natural gas until the well is tied into a gas gathering system. Playing to the idea that some NGL recovery is better than zero.
sts7049
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AG
the one i was referring to was a system that compresses the gas from the stranded well into cylinders for transport by truck. then it's trucked to the offload point and connected to a skid that's tied into the facility and depressured into the system.
aduey06
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I would drive around west texas at night and look for the orange glows. Find out who owns the well then try to contact their marketing or production groups. They will be very skeptical. You will need to provide what benefit they will receive from your operations.

The operators can do many things under lease rights but you taking the gas will probably be viewed as a third party. Now you are talking about easments different surface rights and potentially additional royalty payments if they are not required to pay for flares gas.

If you can reduce flaring then you may be able to sell the environmental benefits of it.
Ragoo
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AG
If they are already flaring the environmental piece has been solved via air permits.
aduey06
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Following air permits. That's funny.
Ronald_Ragin
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AG
Sts, if be interested to hear about your micro LNG project as well as the CNG Virtual Pipeline. I can't PM, would you share some contact info?
sts7049
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this is the company that provides the virtual pipeline solution

https://www.galileoar.com/us/

the micro LNG project i worked on was several years ago now, i'm not even sure the company still exists. it was kind of a one off project i was only partially involved with. you can email me username at gmail if you like. interestingly though, it looks like galileo offers a similar solution to what we did.
Ronald_Ragin
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Thank you! I'm in the LNG/CNG Virtual Pipeline business.. had not heard of Galileo before.
Furlock Bones
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AG
i'm in marketing. i can tell you the vast majority will have long term contracts for that gas. you would only be able to contract on an interruptible basis which makes it very difficult to spend capital on a project with no guaranteed flow.
nonameag99
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See who is flaring this gas

https://www.google.com/maps/@31.3630774,-101.7782103,1180m/data=!3m1!1e3

I was in the area yesterday and both of those flares were roaring

They can be seen in the GM aerial so they have been going for a while
The Aggie number specified has already been linked with another TexAgs account.
texpert68
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AG
Those are both Targa plants.
nonameag99
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the Targa head of commercial for the Permian is and Ag
The Aggie number specified has already been linked with another TexAgs account.
Ragoo
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AG
nonameag99 said:

the Targa head of commercial for the Permian is and Ag
so is the CEO
texpert68
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nonameag99 said:

See who is flaring this gas

https://www.google.com/maps/@31.3630774,-101.7782103,1180m/data=!3m1!1e3

I was in the area yesterday and both of those flares were roaring

They can be seen in the GM aerial so they have been going for a while
My bad...those are WTG plants. Targa is just to the SW across FM1555.
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