NG Advantage LLC, a Clean Energy Fuels Corp. company, has signed a contract to deliver compressed natural gas (CNG) to International Paper's Ticonderoga, N.Y., mill using NG Advantage's ‘virtual pipeline.’
As NG Advantage explains, its virtual pipeline consists of compressor stations located on natural gas pipelines, a fleet of specially designed carbon-fiber CNG trailers, and off-loading and monitoring equipment that NG Advantage is installing at the mill. Deliveries will begin in May, and 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. However, International Paper had decided to cancel the pipeline project for cost reasons.
International Paper has issued a new request for proposals for a long-term trucked-CNG contract, starting when the current contract with NG Advantage ends. NG Advantage notes it is a bidder for the long-term contract as well.