Dead River expands to include
compressed natural gas
Photo courtesy of Whit Richardson/BDN
Dead River Co. and Xpress Natural Gas (XNG) on Jan. 30 announced a partnership to make compressed natural gas, or CNG, available for the first time to Maine commercial customers. Pictured are Bob Moore, CEO of Dead River Co., and John Nahill, CEO of Xpress Natural Gas.
Businesses and institutions throughout Maine will have improved access to compressed natural gas (CNG) thanks to an agreement between Dead River Company and Xpress Natural Gas (XNG), based in Boston.
Natural gas, in the form of compressed natural gas, will be available to commercial and institutional customers across central, northern and eastern Maine thanks to the partnership between Dead River and XNG.
CNG is gas that is reduced in volume to allow for storage and transport. On arrival, the gas is released at normal pressure to the customer. XNG, which currently trucks liquefied natural gas (LNG) to industrial customers, including the Lincoln and Madison paper mills, is about to complete a CNG terminal in Baileyville in Washington County. Dead River will sell and supply CNG from XNG’s terminal to commercial and institutional customers that typically use at least 75,00 gallons of heating oil annually, including industrial parks. XNG will continue to supply its industrial customers with CNG.
“In Aroostook, customers include The Aroostook Medical Center in Presque Isle and Naturally Potatoes in Mars Hill. We have probably three or four other clients in various stages of planning. We’re focusing on industrial, light industrial and commercial,” said John Nahill, XNG’s president and CEO.
Nahill said talks are under way with nearly every hospital, food processors and even some in the asphalt business.
“We’re looking at big energy consumers. We’re literally getting activity from the Maritimes to Massachusetts,” said Nahill, who expected to soon begin delivering the product to customers.
“We’re not geographically constrained. When the need increases, we’ll add spurs,” he said.
Bob Moore, president of Dead River Company, said it’s based on logistics.
“Right now rail doesn’t work. If rail went to the consumer’s door, in theory it would work. Our trailers will be on site until the gas is decompressed and burned,” said Moore. “Trailers will be swapped out every day or two. Trailers are the easiest way to get the products directly to consumers.”
“Dead River is continuing in forward motion as an energy company giving customers more choices to manage their energy costs,” continued Moore. “The reality is most areas of the state of Maine will never see a natural gas pipeline. The cost is simply prohibitive. Our partnership with XNG presents an immediate solution to Maine companies with high energy use who are looking for alternatives to lower their costs. We can deliver the cost savings to make them more competitive. We can make Maine more competitive.”
Nahill said combining efforts will not only benefit each company but consumers as well.
“The combined resources of dead River and XNG can more rapidly expand the benefits of natural gas to a range of commercial and institutional enterprises across the state. Together, we will have a real impact on solving a problem that has made Maine a less competitive state to do business — the high cost of energy,” Nahill said.
Nahill continued, noting, “XNG’s current customers are already saving 25 percent or more on their fuel bills using our service. With the energy costs oftentimes being the biggest number on Maine companies’ balance sheets, we are providing significant relief. And we can offer guaranteed firm supply with fixed pricing to help protect our customers from spikes.”
Nahill said those transitioning to CNG will recoup their costs in less than a year, noting TAMC spent about $300,000 to convert their facility to compressed natural gas — a job expected to be completed this spring — and once completed, hospital officials estimate it will save nearly a half million dollars in heating costs.
In addition to providing a more cost-effective form of energy to consumers, a form of CNG will be used to power the vehicles transporting the product as well.
“A form of the gas will power the tractors to haul the trailers. The diesel equivalent of natural gas is less than $1 (a gallon). The cost of trucking will continue to decline, using hybrid vehicles similar to hybrid cars,” said Nahill, noting more information on fueling hybrids would be available later in the year.
“This drives down the cost of transportation,” said Nahill. “We maintain our own fleet — our trucks fuel at our site and come back to refill. To the extent we need outposts, we’ll work to provide them.”
Nahill said “if you can use a product yourself, it’s a great sales tool.”
Nahill said he sees more compressed gas being transported by truck, since the likelihood of getting a pipeline any time soon is unlikely in the state.
Moore said the deal between his and Nahill’s companies goes far beyond them or their customers.
“In addition to what this means for our two companies and customers we have or will have, the bigger picture is what it does for the state of Maine to make it more energy-competitive. (Energy) is a huge part of doing business in Maine. In order to keep businesses and jobs in Maine, it’s important to maintain affordable energy options,” said Moore.
This partnership brings together XNG proprietary technology with Dead River’s more than 100 years of experience in trucked fuels and energy services to accelerate the availability and the benefits of natural gas to customers across central, northern and eastern Maine. Together, XNG and Dead River are demonstrating the innovative power of private industry to bring the benefits of clean-burning, low-cost natural gas to Maine industry and businesses.
