Arizona-based Modern PVC Inc. (MPVC) has introduced itself to the North American market as a new, vertically integrated compressed natural gas (CNG) marketing and distribution company.
MPVC is developing a mobile gas compression fleet and says it plans to earn high-margin revenue through the sale of CNG to major wholesale buyers, such as corporate trucking fleets, by providing onsite delivery.
MPVC also will provide services to individual consumers wanting to refuel their CNG-powered vehicles and to purchase convenience and travel items from its CNG filling stations.
Lastly, MPVC says it will generate revenue from franchise fees earned from franchising its CNG technology, filling stations and trucking units.
According to MPVC, its business model removes the risk of upstream exploration or midstream-intensive capital investment, as the company is able to provide the benefits of wholesale and retail gas sales with high-margin value-added products in addition to its CNG product.
The company takes delivery of natural gas at the well head and compresses it for sale. MPVC says it secures upstream natural gas production by entering into purchase contracts with suppliers at “a deep discount to the current spot price for natural gas.” By removing the producer's capital costs of pipeline and infrastructure, as well as transmission line usage fees, MPVC claims it is able to pass these savings on to the producer.
