Our friends at Marcellus Drilling News (www.marcellusdrilling.com ) reported a new phenomenon in the oil and gas industry “virtual pipelines.”  MDN had found that a paper mill in upstate New York converted to natural gas and could net get it from a pipeline so it decided to have compressed natural gas (CNG) trucked in, hence the birth of a virtual pipeline.

What does a virtual pipeline mean to the environment?  The more fossil fuels will be used to haul the CNG to the plant.  Then there is the every present danger of truck hauling CNG on the highways and local roads.  Life would be so much better and safer if the pipelines would get built.

MDN further reported that on the heels of the paper mill announcement it found a second virtual pipeline announcement. A company based in Florida called Pentagon Energy announces they’ve just scored their first contract–in the Marcellus Shale–to build a CNG “Mother Station” (think central hub) that will truck 2.5 billion cubic feet (Bcf) of CNG per month to customers throughout the northeast. Here’s more information from Pentagon Energy’s announcement on Tuesday, October 20, 2015.

”Pentagon Energy LLC, “Pentagon Energy,” announced today that it has entered into its first Compressed Natural Gas (“CNG”) contract with a leading global Natural Gas merchant. Under the terms of the transaction the buyer has agreed to purchase up to 90 BCF of CNG for a period of 5 years for distribution in the U.S. North East region. Pentagon Energy is planning to develop its first Compressed Natural Gas (CNG) Mother Station in the Marcellus shale region with the ability to compress up to 2.5 BCF per month.

“The buyer is one of the largest participants in the global gas markets and will be a strong foundation customer for our first CNG Mother Station in the US,” said Alberto Chiesara, Principal.  “Entering into this agreement is a significant milestone for our project and we look forward to working closely with this very important client to make this project a success.”

Pentagon Energy is planning to use specially designed CNG Trailer trucks to transport the gas from the Mother Station to different locations in the U.S. North East market.   The development of this disruptive technology and the manufacturing was undertaken by its sister company, Composites Advanced Technologies, “CAT CNG,” in Houston, Texas.

As currently contemplated, Pentagon Energy is planning to develop several Mother stations in the US to supply CNG to locations that experience gas shortages or lack the infrastructure to receive gas. The Marcellus facility will be the largest of such stations in the U.S.”

We will be closely monitoring Pentagon Energy’s activities to see where the first Mother Station will be built.

Joseph Barone
www.ShaleDirectories.com