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CNG Fueling – Getting into the Game 10/8/2014
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CNG Fueling:
Getting into the GameGetting into the Game
Who are We?• Principal of Marcel Moreau Associates• BA Geology• MS Oceanography• 31 years in petroleum storage systems
Marcel Moreau
• 31 years in petroleum storage systems• CNG for 2 years – Consultant for RP1500
Who are We?
• VP Commercial Sales• BS in Business• 33 years in petroleum Steve Bernstein
• Some CNG in mid‐90s• CNG for last 4 years
Who are We?• CNG Engineer• BS Electrical Engineering• MS Business Administration• CNG full time for 6 yrs
Eric Beavers
CNG full time for 6 yrs
Who Are We?• President & Founder of TGT• Electronics degree • Helped write ANSI/NGV codes for fueling equipment
• Gas station electrical contractor 30 rs
Tom Sewell
• Gas station electrical contractor 30 yrs• CNG for 25 years
Target audiences:
• PEI distributors
A Few Words About RP 1500…
Design, Installation, Operation and Maintenance of
Compressed Natural Gas V hi l F li F iliti
PEI RP 1500
PEI distributors
• Owner operators
• Regulators
Vehicle-Fueling Facilities
CNG Fueling – Getting into the Game 10/8/2014
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•Unlike other PEI RPs, written for the novice
A Few Words About RP 1500…
•Assumes no prior knowledge of CNG
Level of Effort:• 14 members of Committee + 3
PEI staff + 1 Consultant
A Few Words About RP 1500…
• 12.5 days of Committee meetings
• 111 pages
• 88 Drawings/Photos
A Small Sample of Contents…
• 108 definitions• From anodeless riser through molecular sieve to X‐purge
Chapter 2: Definitions
molecular sieve to X purge
• GGE, DGE• How fuel flows in CNG
Chapter 4: How a Vehicle is Filled with CNG
fueling system• Time‐fill, buffer fill, fast fill
• What is a “full fill”
• From the meter set assembly to the nozzle
Chapter 5: Components of a CNG Fuel System
CNG Fueling – Getting into the Game 10/8/2014
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• Pressure, temperature, methane, vibration sensors
Chapter 6: PLCs, Sensors, Flow Control & Flow Measurement
• Remote & manual valves• Pressure control• Coriolis meters
• Pipe, tube, hose
W ldi fl
Chapter 12:Connecting the Components
• Welding, flanges, nut and ferrule, O‐ring face seal, SAE, NPT
• Predictive, preventive, reactive maintenance
• Daily walk through
Chapter 15: Operation
• Weekly tasks• Monthly inspection
You will be able to intelligently talk about CNG with:• Engineers
If You Study RP 1500…
g• Equipment manufacturers
• Regulators • Owners
You will NOT instantly become a competent CNG installation and service contractor
Even If You Study RP 1500…
contractor• Early in 2015
So When Can I Buy It?
• Will be available in both hard copy and electronic pdf
CNG Fueling – Getting into the Game 10/8/2014
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SHOULD YOU EMBRACE
The Question…
SHOULD YOU EMBRACE CNG TECHNOLOGY?
About Jones & Frank
• Our market is the Atlantic Seaboard and Mid‐West
• We provide distribution, service and also installation in select markets
Our History with CNG
• First involvement was early 1990’s
• CNG was not successful in gainingCNG was not successful in gaining traction in the market
• We exited – CNG work was no longer a significant part of operations
Today
• About 4 years ago, we re‐entered the market
• Have built dozens of systems of various sizes, from small appliance & time‐fill systems …
Today
…to large fast fill systems
CNG Fueling – Getting into the Game 10/8/2014
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Why Today?
• Cost of fuel is a big “driver” in the transportation sector
• CNG has a big cost advantage over liquid fuels
The Market Today
• Potential CNG owners need education:
to understand what they are getting into
to manage their expectations to avoid dissatisfaction
The Market Today
Our value proposition in today’s market basket of goods is as amarket basket of goods is as a turnkey provider offering ongoing service
The Market Today
• CNG is currently a small market
• Sales channels are notSales channels are not traditional PEI channels
• Competitors are not traditional competitors
The Market Today
• Margins are thin but we see potential for improvement p pover time
• CNG revenue at present is very small relative to liquid fuels
The Market Today
CNG is NOT easy money!
CNG Fueling – Getting into the Game 10/8/2014
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The Market Today
Our current success in winning j t d tprojects due to:
dedicating resources
The Market Today
Our current success in winning j t d tprojects due to:
identifying opportunities
The Market Today
Our current success in winning j t d tprojects due to:
providing solutions to CNG buyers
The Market Today
This has required aThis has required a significant investment in people
SO, SHOULD YOU EMBRACE
The Question
,CNG TECHNOLOGY?
If you’re thinking YES, then…
Advice to Get in CNG Market
Buy PEI RP 1500 and study it!
studying RP 1500 Will allow you to talk intelligently with CNG engineers, manufacturers, code officials and owners
CNG Fueling – Getting into the Game 10/8/2014
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Advice to Get in CNG Market
CNG is a BIG investment!
Advice to Get in CNG Market
T d it t iTop‐down commitment is required
Advice to Get in CNG Market
• Identify skill sets required…y q
• …and people who can learn them
Advice to Get in CNG Market
• Workers must embrace new technology…
• …and there’s lots of new technology to learn!
Advice to Get in CNG Market
NEEDED !!
ALL‐IN‐ONE:
Mechanical‐Electrical‐Electronics Technicians
Advice to Get in CNG Market
• Expect significantExpect significant training/education costs
• Be prepared to invest in specialty tools & equipment
CNG Fueling – Getting into the Game 10/8/2014
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Advice to Get in CNG Market
• Training Resources:
Trade Organizations
E i t M f t Equipment Manufacturers
Peer Mentoring
Job Shadowing
• It’s a Continuous Process
Advice to Get in CNG Market
• Get over the “Sticker Shock“
Our training investment in Our training investment in past 2 years is close to six figures…
…And still going up
Advice to Get in CNG Market
• Expect a slower ROI than liquid fuel
• CNG station development likely to be slow
• Geographically dispersed customer base dilutes ROI
SO, IF YOU DECIDE TO
The Question
EMBRACE CNG TECHNOLOGY…..
The Answer
…BE PREPARED TO GO “ALL IN”!
THANK YOU!
Steve BernsteinSteve BernsteinJones & Frank
CNG Fueling – Getting into the Game 10/8/2014
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BackgroundBackground
Family owned and operated for 3 generations
Established in 1963 51 years in petroleum
26 years in CNG
Offering high quality installation and service in the North East
Service AreaService Area
Main office in Horseheads, NY
1988 - Binghamton and Horseheadslocations
Our Intro to CNGOur Intro to CNG
Blanket contractor for NYS Electric & Gas
Our Intro to CNGOur Intro to CNG
Led to 35+ small to medium stations for NYS DOT
Our Intro to CNGOur Intro to CNG
CNG Fueling – Getting into the Game 10/8/2014
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80+ major builds to date
Our Intro to CNGOur Intro to CNG Initially Hired on Initially Hired on Basis of: Basis of:
Plumbing, mechanical and l t i l ielectrical experience
Understanding of underground
Initially Hired on Initially Hired on Basis of: Basis of:
underground conduit and piping installation
Willingness to work with utilities and
Initially Hired on Initially Hired on Basis of: Basis of:
learn codes from them
Current Fuel System Current Fuel System OfferingsOfferings Sizing
Design/ Layout
Full in house Full in-house construction
Maintenance contracts
Call out service
OutlookOutlook
Ratio of liquid fuel to CNG work:
CNG15%
Petroleum85%
PAST
CNG was 15-20%
CNG Fueling – Getting into the Game 10/8/2014
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OutlookOutlook
Ratio of liquid fuel to CNG work:
CNG15%
Petroleum85%
PAST
CNG was 15-20%
Over last 5 years CNG has increased to 90%
Petroleum10%
CNG90%
PRESENT
Getting StartedGetting Started
Learn what it is you are Learn what it is you are getting intogetting into
Getting StartedGetting Started Learn what it is you are
getting into
Learn codes & work Learn codes & work with code officialswith code officials
Getting StartedGetting Started Learn what it is you are getting
into
Learn codes & work with code officials
Get trainingGet trainingGet trainingGet training
Getting StartedGetting Started Learn what it is you are getting
into
Learn codes & work with code officials
Get training
Start small Start small -- Don’t get Don’t get in over your head!in over your head!
Getting StartedGetting Started Learn what it is you are getting into
Learn codes & work with code officials
Get training
St t ll D ’t t i Start small - Don’t get in over your head!
Find loyal customer who will Find loyal customer who will ride out the bumpy road while ride out the bumpy road while you learn togetheryou learn together
CNG Fueling – Getting into the Game 10/8/2014
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Build on Your ExperienceBuild on Your Experience
Petroleum contracting
Electrical
Mechanical
Build on Build on Your Your EExperiencexperience
Petroleum Petroleum contracting contracting
Build on Build on Your Your ExperienceExperience
Petroleum Petroleum contracting contracting
Si l / T ffi Si l / T ffi Site layout/ Traffic Site layout/ Traffic flowflow
Build on Your Build on Your ExperienceExperience
Petroleum Petroleum contracting contracting
Si l / T ffi Site layout/ Traffic flow
Pouring concretePouring concrete
Build on Build on Your Your ExperienceExperience
Petroleum Petroleum contracting contracting
Si l / T ffi Site layout/ Traffic flow
Pouring concrete TrenchingTrenching
Build on Your Build on Your ExperienceExperience
ElectricalElectrical
CNG Fueling – Getting into the Game 10/8/2014
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Build on Your Build on Your ExperienceExperience
ElectricalElectrical Running conduitRunning conduit
Build on Your Build on Your ExperienceExperience
ElectricalElectrical Running conduit Planning wiring Planning wiring
layoutslayouts
Build on Your Build on Your ExperienceExperience
ElectricalElectrical Running conduit Planning wiring
layouts Safety around live Safety around live
circuitscircuits
Build on Your Build on Your ExperienceExperience
MechanicalMechanical
Build on Your Build on Your ExperienceExperience
MechanicalMechanical PlumbingPlumbing
Build on Your Build on Your ExperienceExperience
MechanicalMechanical Plumbing WeldingWelding
CNG Fueling – Getting into the Game 10/8/2014
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Build on Your Build on Your ExperienceExperienceMechanicalMechanical Plumbing Welding Bending tubeBending tube
Gaining ProjectsGaining Projects
Bid and spec work
Experienced customerp
Develop customer and project
Gaining ProjectsGaining Projects
Bid and spec workBid and spec work
Gaining ProjectsGaining Projects
Bid and spec workBid and spec work Same engineersSame engineers
Gaining ProjectsGaining Projects
Bid and spec workBid and spec work Same engineers Team upTeam upTeam upTeam up
Gaining ProjectsGaining Projects
Experienced customerExperienced customer
CNG Fueling – Getting into the Game 10/8/2014
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Gaining ProjectsGaining Projects
Experienced customerExperienced customer Multiple stationsMultiple stations
Gaining ProjectsGaining Projects
Experienced customerExperienced customer Multiple stations Already have a Already have a eady ave a eady ave a
consultantconsultant
Gaining ProjectsGaining Projects
Experienced customerExperienced customer Multiple stations Already have a eady ave a
consultant Learn Learn from their from their
experienceexperience
Gaining ProjectsGaining ProjectsDevelop customer and Develop customer and
projectproject
Gaining ProjectsGaining ProjectsDevelop customer and Develop customer and
projectproject Most difficultMost difficult
Gaining ProjectsGaining ProjectsDevelop customer and Develop customer and
projectproject Most difficult Cover all aspects of Cover all aspects of
transitiontransition
CNG Fueling – Getting into the Game 10/8/2014
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Gaining ProjectsGaining ProjectsDevelop customer and Develop customer and
projectproject Most difficult Cover all aspects of
transition Play to your strengthsPlay to your strengths
Gaining ExperienceGaining Experience
Team with experience Team with experience and learn from them and learn from them
Gaining ExperienceGaining Experience
Team with experience and learn from them
Build a relationship with Build a relationship with Build a relationship with Build a relationship with manufacturersmanufacturers
Gaining ExperienceGaining Experience
Team with experience and learn from them
Build a relationship with Build a relationship with manufacturers
Stay currentStay current
Gaining ExperienceGaining Experience
Team with experience and learn from them
Build a relationship with Build a relationship with manufacturers
Stay current
We learn something from We learn something from every projectevery project
Prepared By: Eric Beavers
Visit: BeaversPetroleum.com
CNG Fueling – Getting into the Game 10/8/2014
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Tulsa Gas Technologies, Inc.Tulsa Gas Technologies, Inc.(TGT)(TGT)
TULSA, OKLAHOMA USATULSA, OKLAHOMA USA
TGT BackgroundTGT Background
•• Involved in CNG fueling since 1989Involved in CNG fueling since 1989
•• 500 facilities in US; 200 international500 facilities in US; 200 international
TGT BackgroundTGT Background
•• Manufacturer of Manufacturer of CNG dispensers CNG dispensers (400 per year)(400 per year)
•• Station integrator Station integrator ––helps select CNG helps select CNG equipment, perform equipment, perform CNG specific tasksCNG specific tasks
TGT BackgroundTGT Background
•• Owner of three retail Owner of three retail stationsstations
•• 20 rental 20 rental compressorscompressors
•• Total throughput of Total throughput of 1 million 1 million gallons/year gallons/year
TGT Works Closely TGT Works Closely with a General with a General Contractor (GC) to Contractor (GC) to Build CNG Facilities Build CNG Facilities
TGT Role in CNG Facility ConstructionTGT Role in CNG Facility Construction
Set and anchor heavy Set and anchor heavy equipment:equipment:•• compressorscompressors
t lt l•• storage vesselsstorage vessels•• dryersdryers
CNG Fueling – Getting into the Game 10/8/2014
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TGT Role in CNG Facility ConstructionTGT Role in CNG Facility Construction
•• Secure materialsSecure materials
•• Install CNG tubingInstall CNG tubing
•• Test for integrityTest for integrityTest for integrityTest for integrity
•• Test for tightnessTest for tightness
TGT Role in CNG Facility ConstructionTGT Role in CNG Facility Construction
Provide and install communication software Provide and install communication software (CNG compressor, POS system, remote (CNG compressor, POS system, remote monitoring (SCADA))monitoring (SCADA))
TGT Role in CNG Facility ConstructionTGT Role in CNG Facility Construction
Make or supervise all final connections (natural Make or supervise all final connections (natural gas, electrical, mechanical)gas, electrical, mechanical)
TGT Role in CNG Facility ConstructionTGT Role in CNG Facility Construction
When requested, train GC employees in When requested, train GC employees in CNGCNG--specific tasksspecific tasks
GC Role in CNG Facility ConstructionGC Role in CNG Facility Construction
Pull permitsPull permits
GC Role in CNG Facility ConstructionGC Role in CNG Facility Construction
Site preparationSite preparation
CNG Fueling – Getting into the Game 10/8/2014
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GC Role in CNG Facility ConstructionGC Role in CNG Facility Construction
TrenchingTrenching
GC Role in CNG Facility ConstructionGC Role in CNG Facility Construction
Foundations and concrete workFoundations and concrete work
GC Role in CNG Facility ConstructionGC Role in CNG Facility Construction
Buildings & canopiesBuildings & canopies
GC Role in CNG Facility ConstructionGC Role in CNG Facility Construction
Provide electrical and plumbing Provide electrical and plumbing contractorcontractor
GC Role in CNG Facility ConstructionGC Role in CNG Facility Construction
Onsite supervision and coordination of Onsite supervision and coordination of construction activitiesconstruction activities
GC Role in CNG Facility ConstructionGC Role in CNG Facility Construction
Integrate CNG with existing liquid Integrate CNG with existing liquid fuel equipmentfuel equipment
CNG Fueling – Getting into the Game 10/8/2014
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How TGT Selects GCHow TGT Selects GC
Willingness to learn how to put Willingness to learn how to put CNG together CNG together
How TGT Selects GCHow TGT Selects GC
Familiarity with liquid fueling stations (piping, Familiarity with liquid fueling stations (piping, dispensers, canopies, driveways, etc.)dispensers, canopies, driveways, etc.)
How TGT Selects GCHow TGT Selects GC
Familiarity with control systems (card readers, POS Familiarity with control systems (card readers, POS systems, backroom control boxes) systems, backroom control boxes)
How TGT Selects GCHow TGT Selects GC
Familiarity with Familiarity with applicable codes applicable codes (NFPA 30A, NFPA (NFPA 30A, NFPA 52)52)
PEI Distributors Are Attractive GCs PEI Distributors Are Attractive GCs PEI Distributors Are Attractive GCs PEI Distributors Are Attractive GCs
Have relevant experience building fueling Have relevant experience building fueling facilitiesfacilities
CNG Fueling – Getting into the Game 10/8/2014
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PEI Distributors Are Attractive GCs PEI Distributors Are Attractive GCs
Have relationship with fire marshal (crucial!)Have relationship with fire marshal (crucial!)
PEI Distributors Are Attractive GCs PEI Distributors Are Attractive GCs
Are familiar with fire codesAre familiar with fire codes
PEI Distributors Are Attractive GCs PEI Distributors Are Attractive GCs
Have qualified service personnel who already Have qualified service personnel who already maintain liquidmaintain liquid--fueling facilitiesfueling facilities
PEI Distributors Are Attractive GCs PEI Distributors Are Attractive GCs
Have extensive experience with liquid vehicleHave extensive experience with liquid vehicle--fueling technologiesfueling technologies
PEI Distributors Are Attractive GCs PEI Distributors Are Attractive GCs
Are comfortable working with hazardous materialsAre comfortable working with hazardous materials
PEI Distributors Are Attractive GCs PEI Distributors Are Attractive GCs
Have relationships with other customers who may Have relationships with other customers who may have an interest in CNG fuelinghave an interest in CNG fueling
CNG Fueling – Getting into the Game 10/8/2014
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PEI Distributors Must LearnPEI Distributors Must Learn
How to work with high How to work with high pressure tubingpressure tubing
PEI Distributors Must LearnPEI Distributors Must Learn
•• How to set heavy equipment How to set heavy equipment
45,000 pounds
PEI Distributors Must LearnPEI Distributors Must Learn
•• NFPA 52 inside and out NFPA 52 inside and out ((also IFC in some locationsalso IFC in some locations))
PEI Distributors Must LearnPEI Distributors Must Learn
•• How to work with natural gas How to work with natural gas utilities utilities
PEI Distributors Must LearnPEI Distributors Must Learn
How to work with electrical utilitiesHow to work with electrical utilities
PEI Distributors Must LearnPEI Distributors Must Learn
The basics of CNG The basics of CNG fueling equipment (RP fueling equipment (RP 1500 is a great start)1500 is a great start)
CNG Fueling – Getting into the Game 10/8/2014
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PEI Distributors Must AlsoPEI Distributors Must Also
Build relationships with CNG Build relationships with CNG equipment companiesequipment companies
PEI Distributors Must AlsoPEI Distributors Must Also
Tell their insurance Tell their insurance companies what they’re companies what they’re doingdoingdoingdoing
Where the $$$$$ is in CNGWhere the $$$$$ is in CNG
It’s not just construction…It’s not just construction…
Where the $$$$$ is in CNGWhere the $$$$$ is in CNG
•• Service for 20 to 30 years Service for 20 to 30 years (weekly or monthly (weekly or monthly
The real money is in serviceThe real money is in service
service calls)service calls)
Where the $$$$$ is in CNGWhere the $$$$$ is in CNG
•• Compressor oil is $11Compressor oil is $11--18 a 18 a quartquart
The real money is in serviceThe real money is in service
Where the $$$$$ is in CNGWhere the $$$$$ is in CNG
•• Dryers need regeneration Dryers need regeneration annuallyannually
The real money is in serviceThe real money is in service
CNG Fueling – Getting into the Game 10/8/2014
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Where the $$$$$ is in CNGWhere the $$$$$ is in CNG
•• PressurePressure--relief valves must be relief valves must be recertified every 3 yearsrecertified every 3 years
The real money is in serviceThe real money is in service
Where the $$$$$ is in CNGWhere the $$$$$ is in CNG
•• Filter replacement yearlyFilter replacement yearly
The real money is in serviceThe real money is in service
Where the $$$$$ is in CNGWhere the $$$$$ is in CNG
•• Compressors need ongoing monitoring Compressors need ongoing monitoring and maintenanceand maintenance
The real money is in serviceThe real money is in service
Where the $$$$$ is in CNGWhere the $$$$$ is in CNG
Service calls require LOTS of equipment specific Service calls require LOTS of equipment specific mechanical, electrical and electronic trainingmechanical, electrical and electronic training
BUT…BUT…
Tulsa Gas Technologies, Inc.Tulsa Gas Technologies, Inc.
Thank You!Thank You!
Tom SewellTom Sewell
Come to our
one‐on‐onesession this
More Questions?
session this noon!
Noon Noon ‐‐ Aisle #7100Aisle #7100