Utility Gas Supply

XNG offers both CNG and LNG solutions for utilities seeking supplemental gas for curtailment or expansion in their franchise areas.

Regulatory reform is creating pressure on local distribution companies (LDCs) and some pipelines to reduce their costs while maintaining reliable service. Unlike the past when distribution companies were able to recover the cost of adding additional capacity through their rate base, utilities are now expected to maintain their service requirements in an ever-competitive marketplace. CNG can provide a cost effective way for LDCs to meet their increasing and fluctuating system capacity requirements.

How does it work?

Emergency Service: XNG can mobilize its decompression or vaporization equipment on a rapid basis. We staff a solution 24×7 with trained operators in order to provide gas to a utility during any unscheduled or scheduled pipeline repair until full service is restored.

Peaking Service: Utilities are increasingly feeling pressure from both customers and regulators to increase capacity on existing lines in order to extend service farther to fewer customers. Alternately, XNG can supply CNG to critical flow points on existing pipelines to increase capacity during peak demand, enabling the utility to maintain compliance with Public Utility Commission requirements for capacity, without the cost of all the piped mile upgrades.

Baseload Service: Every LCD has a franchise area that would be attractive to serve if the load was established, but the return on capital is too low to build the pipeline ahead of demand. With XNG, we can provide gas supply to establish a local market, and work with the LDC to build sufficient demand that will warrant extending the pipeline.

How can XNG help?

We offer both CNG and LNG systems for temporary or permanent installations, and we have been given regulatory approval for permanent connection to utility systems.   Please give us a call and see if we might play a role in your utility management and growth plans.