We had the first ASME Sec. VIII, Division 1, pressure-vessel code-shop in the state.  We had our own pipeline construction and operating crew, a sizable engineering staff and were building plants for our own account with our own operating company, Capitan Energy.  The shop incorporated as Kenweld.  We entered a joint venture with SPS as Chala Cryogenics covering several plants.

In 1982 we entered into an agreement with Beech Aircraft, Alternative Energy Division, for design and construction of packaged LNG plants.  At this time it was evident LPG and gas prices were falling quite rapidly.  We opted to sell our plants and contracts and to concentrate on LNG package construction.  We sold the White Ranch plant to Mapco and took a three year operating contract.  In mid 1986 it became obvious Beech Aircraft was not going to sell any plants for LNG production.  We opted to liquidate K. B. Kennedy Engineering with all technologies developed becoming the property of K. B. Kennedy. 

United Asia Oil and Kryopak It is with great anticipation to incorporate Raphael Pumpelly's [Pumpelly History Here] United Asia Oil group in Asia together with previously mentioned locomotive groups.  In 1981 one of our engineers, Charlie Bartholomew, met with Mr. Pumpelly and began a mutual interest in natural gas fueled locomotive engines just beginning with Energy Conversions Inc. in Tacoma Washington and Northern States Power in Minnesota where our engineer lived.  By 1982 Burlington Northern Railroad became interested in the Northern States Power Companies dual fueled project and ten years later LNG locomotives were running coal from Wyoming into Minnesota.  By 1990, Kryopak's interest in mining corporations grew to over 102 major North American corporations.  We held a LNG Business Meeting in 1991 to explain why Kryopak's LNG is less than $0.20 per gallon.  In 1991, George Salof, Ken Kennedy, Charlie Bartholomew and MDU met with Mr. Pumpelly in his Los Angeles office.

Raphael Pumpelly's LNG vehicle fuel plant for a concession (1969-1997 largest undrilled structure in Asia) never materialized because lack of interest in Thailand's locomotive use and natural gas power generation from the property.  However, his family's 130 year interests in Central Asia look more promising.

A dedicated locomotive project

An entire $500 million LNG locomotive project is guaranteed by combining, gas availability, U.A.0. investors, competent worldwide oil and gas operators in the group, appropriate returns on investment from railroads, and the efficiency of Kryopak's LNG plant.
This case is based on United Asia Oil operating control of gas volume (350 Bcf), pressure & composition over 10 years into a Kryopak LNG plant from a dedicated concession.

Our experience understanding both mining and locomotive needs together with numerous trips to corporate headquarters, and field locations, leave us with the opinion where gas availability (low priced) and unavailable diesel (or higher priced) exist, LNG will repay all costs.
Time for recovery of investment depends on variables such as fuel price differential (great in Asia), unit vehicle cost and delivery (all costs in) and profit to all parties involved. 5020 references generated for this Asian project alone say $2,000 US per hour will be saved by the Ministry of Rail on 200, MP1200-G switchers and 30, 3400 horsepower road locomotives from just one 120,000 gpd LNG plant.

We were impressed with Asian official presentations here in the U.S. in June and think both mining and petroleum industries will benefit from this exposure.
We think railroads like the performance of the MP 1200 G switchers and the GM-EMD 40-2's.
It is also possible to incorporate LNG into the large mining equipment.  Newmont in particular comes to mind, as they were the first mining company to set aside moneys for 2,000 horsepower LNG haul trucks.  The first 1200 horsepower mining trucks were converted by United States Steel in 1967 on iron ore mines in Northern Minnesota.

It has always been Kryopak's intention to work LNG vehicle fuel with coordination in high fuel users.

Switcher Locomotives produce at the rate of four (4) per month.
Kryopak's LNG plant (120,000 gallons per day) will be up and running sixteen (16) months from project start in U.S. to production of LNG fuel.
GM-EMD dual fuel, diesel, and LNG (3400 horsepower) locomotives produced at the rate of two (2) per month.
Sixty four (64) switchers and thirty (30) road locomotives can be on location at start up of Kryopak LNG operations in sixteen (16) months.

Thirty-four (34) months after LNG plant startup, one hundred and thirty six (136) more switchers will be operating off the LNG plant, bringing locomotive operations total to 200 switchers and 30 road locomotives.

Provisions-
United Asia Oil dedicates three hundred and fifty billion cubic feet of gas to this sized locomotive project, at an agreeable gas purchase value: the railroad agrees to purchase the LNG, at an agreeable price.
A $500,000,000 USD project will proceed, funding arranged by us.

Currently, we have 40 Requests for Quotes out on Kryopak's LNG processes on 4 continents, several Islands, floating production storage off-loading platforms, barge platforms, and several Regasification LNG plants for the Largest LNG carriers- June 2003