October 25th, 2012 - Dresser-Rand Company has announced that they have entered into an agreement with Tarrytown, New York based Expansion Energy LLC. Under the agreement, Dresser-Rand is granted a worldwide exclusive (for capacities up to 100,000 gallons per day) license to Expansion Energy's proprietary VX™ Cycle technology for the small-scale production of Liquefied Natural Gas.
"The agreement with Expansion Energy is consistent with our strategy to provide high-speed rotating equipment solutions to the energy infrastructure markets, said Jesus Pacheco, Dresser-Rand's Executive Vice President, New Equipment Worldwide. The agreement is important because it gives us exclusive rights to serve a new and large market opportunity with our legacy products as well as our recently acquired engine line."
Dresser-Rand believes that the patented VX™ Cycle is the first technology to provide a cost-effective small-scale LNG production process with capacities as low as 1500 gallons per day—far smaller than any other LNG production system commercially available today. The mobile, skid mounted equipment configuration for this process technology opens up a wide variety of applications in markets currently underserved or not served at all. "Upstream" applications includes: the monetization of flared gas or associated gas to increase revenues for oil companies and reduce their environmental impact, the production of stranded natural gas fields which are not close to existing pipeline infrastructure, and on-site fuel supply for drilling rigs converted to run on LNG. "Downstream" applications include the production of vehicle-grade LNG, allowing LNG to compete effectively with diesel fuel on a cost-per-energy-content (BTU) basis. The use of LNG fuel is increasing rapidly for long-haul trucks; delivery fleets; buses; ships, barges and ferries; railroad locomotives; and construction and mining equipment.
According to Brad Dickson, Dresser-Rand's Vice President and Chief Marketing Officer, "In our on-going evaluation of technologies to complete the value chain for the burgeoning shale markets, as well as solutions for addressing global natural gas flaring and the rapidly expanding markets for LNG vehicle fueling, Expansion Energy's LNG production process met all of the requirements we identified and embodies technology that we can bring to the market quickly. We already have several clients anxious to take multiple units to fuel their fleet operations. We presently believe that the market for this technology will be in the range of $100 to $200 million within just the next 2 to 3 years, and will continue to grow robustly beyond that."
Under the agreement, Dresser-Rand will design, package and sell equipment embodying the VX™ Cycle production technology including Dresser-Rand® reciprocating compressors and Guascor® engine-generator sets, and associated control systems. Dresser-Rand advises that the technology is scalable to the tens of thousands of gallons per day, producing either LNG or CCNG™ (Cold Compressed Natural Gas) and will be designed in numerous skid-mounted, mobile trailer-mounted and/or stationary modular configurations to suit its clients' requirements.