MOBILE PIPELINE 101 BY COMPASS NATURAL GAS PARTNERS, LP PRESENTER: YVES E. POLLART, PE, BCEE, EVP - ENGINEERING & DEVELOPMENT COMPASSNGP.COM Compass CNG Compression and Loading terminal 25,000+ mmbtu/day

Compass CNG Decant Site Each CNG truck arrives at customer site with ~300-330 mmbtu of CNG ready for the customer.

COMPASS NATURAL GAS extracts gas from pipeline bottlenecks and stranded wells, compresses it, and delivers it by truck to industrial, transport, agricultural, commercial, governmental, and other customers.

CNG LOGISTICS FOR THE 21ST CENTURY COMPASS NATURAL GAS What is CNG?

• Compressed Natural Gas (CNG) is natural gas that is dried to remove residual moisture and compressed to 3,000 - 3,600psi.

• CNG can be used as an alternative fuel in place of any traditional energy (fuel oil, diesel, propane, gasoline).

• Compressing the gas allows for greater storage density in specialty bulk highway cargo tanks.

• Because CNG is compressed to a high pressure, it is safer and dissipates in the air and does not pool on the ground in the event of a leak, such as propane or diesel.

CNG LOGISTICS FOR THE 21ST CENTURY COMPASS NATURAL GAS CNG vs. LPG vs. LNG

Compressed Natural Gas or CNG is stored on the vehicle in high-pressure tanks (3,000 to 3,600 psi). A sulphur- based odorant is normally added to CNG to facilitate leak detection. Natural gas is lighter than air and thus will normally dissipate in the case of a leak, giving it a significant safety advantage over gasoline or LPG.

Liquefied Natural Gas or LNG is natural gas stored as a super-cooled (cryogenic) liquid. The temperature required to condense natural gas depends on its precise composition, but it is typically between -120 and -170°C (-184 and –274°F). The advantage of LNG is that it offers an energy density comparable to diesel fuels, extending range and reducing refueling frequency.

The disadvantage, however, is the high cost of cryogenic storage on vehicles and the major infrastructure requirement of LNG dispensing stations, production plants and transportation facilities. LNG has begun to find its place in heavy-duty applications in places like the US, Japan, the UK and some countries in Europe. For many developing nations, this is currently not a practical option.

Liquefied Petroleum Gas or LPG (also called Autogas) consists mainly of propane, propylene, butane, and butylene in various mixtures. It is produced as a by-product of natural gas processing and petroleum refining. The components of LPG are gases at normal temperatures and pressures. One challenge with LPG is that it can vary widely in composition, leading to variable engine performance and cold starting performance. At normal temperatures and pressures, LPG will evaporate. Unlike natural gas, LPG is heavier than air, and thus will flow along floors and tend to settle in low spots, such as basements. Such accumulations can cause explosion hazards, and are the reason that LPG fueled vehicles are prohibited from indoor parkades in many jurisdictions.

Courtesy of Alternative Fuel Sources Inc.

CNG LOGISTICS FOR THE 21ST CENTURY COMPASS NATURAL GAS CNG Background

History of CNG:

• CNG has been delivered in steel tube trailers since shortly after WWII. • The first CNG vehicles dates back to the 1930s • Trucked CNG operations have been in place in Latin America, Asia, and Canada for decades, with the oldest operations dating to the 1960s. • Compass Natural Gas is the first company in Pennsylvania to deliver bulk CNG to customers.

CNG LOGISTICS FOR THE 21ST CENTURY COMPASS NATURAL GAS CNG Truck & Trailer

CNG Trailer deliverable capacity: 300-330 mmbtu/load ~2,200 DGE/load Mack CNG Pinnacle Day Cab Delivers gas at 3,600 psi

CNG LOGISTICS FOR THE 21ST CENTURY COMPASS NATURAL GAS Types of CNG Trailers

Courtesy of Hexagon Lincoln Composites

CNG LOGISTICS FOR THE 21ST CENTURY COMPASS NATURAL GAS CNG Compression & Distribution Terminal

Compressor

Power Generation G

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UC

UT

Tractor and trailer

Compass-Quaker Site Drawing

CNG LOGISTICS FOR THE 21ST CENTURY COMPASS NATURAL GAS Natural Gas Meter Station

CNG LOGISTICS FOR THE 21ST CENTURY COMPASS NATURAL GAS CNG Terminal Components

CNG Compressor (twin 300 HP) CNG Compressor (single 600 HP) Natural Gas Drier

CNG Trailer Fill Lanes

Power Generation Unit

CNG LOGISTICS FOR THE 21ST CENTURY COMPASS NATURAL GAS CNG at Work: Customer Site

• Industrial food processing plant in Pennsylvania

• 1,800 fuel oil gallons replaced every day

• Boilers operating more efficiently

• Planned expansion in near future

CNG LOGISTICS FOR THE 21ST CENTURY COMPASS NATURAL GAS How it Works

Gas Compression & Delivery & Implementation & Trailer Swap : 1 Loading: 2 Decompression: 3 Once the trailer is emptied, a Natural gas is Natural gas is delivered switch opens a valve to a full compressed to and decompressed to trailer and a signal is sent to 3,600 psi and filled the facility’s required Compass to deliver a new into trailers pressure for operations. trailer of gas

CNG LOGISTICS FOR THE 21ST CENTURY COMPASS NATURAL GAS Customer Site Decant

Customer Decant: CNG is brought down to a usable (3,600 psi to ~50 psi) pressure for customer operations.

CNG LOGISTICS FOR THE 21ST CENTURY COMPASS NATURAL GAS Safety of CNG

More LNG CNG has a high ignition temperature and narrow range Dangerous of flammability: around 1,200 degrees Fahrenheit, Propane compared to 600 degrees Fahrenheit for gasoline. Gasoline CNG is lighter than air: it will dissipate in the event of a Diesel leak and will not pool on the ground, unlike diesel, propane, and gasoline.

CNG Reference: “Portable Pipelines” - Chris Christopoulos Jr. & Michael Callan, portable-pipelines.com

CNG LOGISTICS FOR THE 21ST CENTURY COMPASS NATURAL GAS Unit Economics

CNG remains one of the lowest and price-stable energies on the market. Boiler conversion for industrial customers typically costs between $50k to $400k, depending on existing equipment. The typical break even on such an investment is less than two years.

Marcellus Gas Source

PA Wholesale Propane

PA Wholesale Fuel Oil

Source: OPIS & Platts Daily

CNG LOGISTICS FOR THE 21ST CENTURY COMPASS NATURAL GAS FOR MORE INFORMATION, PLEASE VISIT COMPASSNGP.COM AND FOLLOW US ON LINKEDIN! THANK YOU.

YVES E. POLLART, PE, BCEE EVP - ENGINEERING & DEVELOPMENT [email protected] (717) 963-7442

CNG LOGISTICS FOR THE 21ST CENTURY COMPASS NATURAL GAS