NG Advantage will truck compressed natural gas (CNG) to International Paper’s Ticonderoga, New York, mill.
NG Advantage will use 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 2015.
Tractors and drivers will be based in Ticonderoga – where the mill is – and gas can be provided from any of several compressor stations used by NG Advantage.
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.
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 under Lake Champlain. However, International Paper decided to cancel the pipeline project for cost reasons.
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.