The KEY BENEFITS from a Standby System
| ★ SNG is
an ENERGY MANAGEMENT TOOL
1. An SNG System allows
burning the most economical fuel:
The client can burn the most economical fuel,
whether it is natural gas or SNG.
An SNG System allows the Customer options. He
is not held hostage to a certain fuel tariff. The
is important, for example, in areas where the Customers
price per MCF of natural gas dictated by the MDQ
(Maximum Daily Flow) consumed at his/her facility.
The SNG plant allows the customer to monitor his
gas consumption and use the SNG system to prevent
exceeding his maximum daily allotment and thus
incurring significant costs!
Another example could be – the Customer can monitor
the cost per BTU of SNG versus NG. Which is cheaper?
We'll – use the cheaper one! Or - use the OPTION
of burning SNG as motivation to have the NG supplier
reduce their price. Again – the key is “options”
– energy management options!
SNG is an ENERGY MANAGEMENT
2. An SNG System allows the Customer to obtain
an interruptible Natural Gas Rate:
The client can obtain discounted interruptible
rates from the natural gas suppliers. The client
signs a contract with the natural gas supplier
stating their NG supply can be interrupted during
periods of high demand. The client's gas requirement
during this potential curtailment period is met
by the standby system.
The price differential between the firm rate and
the interruptible rate provides a savings that typically
provides an ROI sufficient to pay the SNG System
off in 8-48 months.
3. An SNG System ensures
an uninterrupted fuel supply:
The client assures himself of an uninterrupted
fuel supply even during an emergency. SNG is the
best insurance policy possible against any level
of NG interruptions.
Uninterrupted fuel supply is especially important
for process loads where the risk of curtailment can
have huge financial consequences. For example, glass
manufacturers, ceramics companies, bakeries, green
houses, steel facilities and so on.
4. SNG is an accepted
backup fuel when fuel oil is not feasible:
Oil as an alternate fuel is often not feasible
due to environmental legislation. A good example
is Southern California. Pretty much across the
county, precautions required by law to safeguard
against leaky underground oil storage tanks also
makes permitting and installation both difficult
and expensive. The use of oil will also require
special burners and significant adjustments to
switch from natural gas to oil. To be Blunt – using
oil as a standby fuel to natural gas is a pain
in the butt! Don't believe me? Ask the maintenance
guys who have to run the system!
The “environmental motivation” for purchase of an
SNG System is generally weak except in areas of heavy
environmental legislation. However, the nuisance
factor and general dislike by most plant maintenance
and operator personnel of oil fired back-up for natural
gas, makes this an issue worth bringing up!
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