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APG Dual Fuel System

APG to Double Existing Natural Gas Flare Capture, Processing

APG Dual Fuel SystemAmerican Power Group plans to purchase a two additional natural gas flare capture and recovery systems after securing a $3.25 million loan.

The systems — designed to meet the EPA’s proposed oil and gas methane flare reduction regulations — can monetize captured flared gas converted into natural gas liquids (NGLs) and will double APG’s existing flare capture and processing capacity in North Dakota’s Bakken region.

One of the two units will be able to produce compressed natural gas for APG’s Turbocharged Natural Gas Dual Fuel conversion technology.

APG recently signed a license agreement with Trident Resources for the exclusive worldwide right to commercialize Trident’s proprietary NGL processing technology. APG purchased certain of Trident’s operating assets including two existing mobile NGL processing systems currently servicing remote or stranded well sites for one of the top five oil and gas exploration and production companies in the Bakken region.

The purchase of the two new additional systems is in response to an overwhelming demand from operators of existing remote/stranded well sites and allows APG to increase its processing capability in the Bakken to meet the more stringent flare capture regulations coming due in 2016 and 2020, APG says.

An average remote or stranded well site producing 1 million to 2 million cubic feet of flared gas per day has the capacity to produce several million gallons of NGL and over a million equivalent diesel gallons of natural gas on an annual basis making this a multi-billion dollar regulatory-driven market.

 

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