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Range Hedges 80% of 2011 Gas Production
Pressurised CNG Alternative Heavy Duty Transportation


Argentina New Gas Could Cover 50 Years 
Liquefied Natural Gas Station to Open in Conn



Liquefied Natural Gas Station to Open in Conn.
Rare East Coast liquefied natural gas station to open in Connecticut
By STEPHEN SINGER AP Business Writer HARTFORD, Conn. December 9, 2010
A new type of gas station is opening in Connecticut, selling liquefied natural gas to trucks to reduce polluting diesel fumes while potentially saving money.

Bill Malone, owner and operator of Enviro Express Inc., which transports waste to landfills and transfer stations, is opening the LNG station Friday at his company in Bridgeport near busy Interstate 95, a key East Coast highway that extends from Maine to Florida.

The Bridgeport station also will sell compressed natural gas that fuels cars. Malone and other promoters of LNG for vehicles say the fuel stations, established years ago in the West, are only now beginning to move east, starting with the Connecticut site.

The 53-year-old Malone, who said he has been in the trucking business since he was 18, was looking to cut pollution from his fleet of diesel-fuel trucks. He heard of Clean Energy Fuels Corp., which designs, builds and operates natural gas fueling stations. Malone said in 2008 he met T. Boone Pickens, a co-founder of the Seal Beach, Calif., company and Texas oil man, now a booster of alternative fuels.  "He convinced me that to be viable as a trucking firm, I need to go LNG," Malone said.

Liquefied and compressed natural gas are initially being used for corporate and government vehicle fleets. Malone plans to initially convert 18 of his own trucks to LNG, and said he has won a commitment from AT&T Inc. to buy fuel for 48 trucks.
The station will be open to trucks and cars that can fill up using credit cards linked to their company fleet accounts.

Promoters of natural gas say LNG and CNG are cleaner than gasoline and reduce U.S. reliance on imported oil because most natural gas is from North America.
The cost savings will grow as oil prices continue to climb, with a difference of between 50 cents and $1 per gallon, said Bruce Russell, spokesman for Clean Energy Fuels Corp. Large trucks can consume up to 20,000 gallons a year or more, he said.

Pressurised CNG Alternative Heavy Duty Transportation
December 9, 2010 GAS Today Australia

The iGas prototype with 4-cylinder fuel-pack in vertical arrangement.  “Potential to reduce imports by over $2 billion per year at current oil prices” – Paul Whiteman, iGas CEO

Australian company iGas Energy has been toiling over a new solution to fuelling heavy duty long-distance transportation in Australia, using compressed natural gas (CNG) fuel storage instead of LNG. The company has purchased two Western Star prime movers which are fitted with proven Westport high pressure direct injection (HPDI) gas engines as part of a collaborative agreement with Westport Innovations. The iGas system has been successfully fuelling a prototype vehicle towing loaded single and B-Double trailers at highway speeds. The system has been patented in Australia, Canada and the European Union with other international patents applied for.
The CNG is stored in carbon fibre composite cylinders at 350 bar, and as the gas is used to fuel the engine the iGas process maintains high pressure in the cylinder by displacing CNG with a liquid, one CNG cylinder at a time, allowing gas to be injected into the HPDI engine.

A fuel pack comprising four Australian-approved cylinders will give a truck the same range as a 450 litre tank of diesel using a conventional engine, according to a GAS Today report.

By way of an interview with Paul Whiteman, iGas Energy Holdings founder and Chief Executive Officer, the article describes the components and advantages of the system, including the iGas vision to transform interstate transportation on the Australian continent while reducing fuel costs, GHG emissions and particulate matter.

Whiteman told GAS Today, “From our research we believe vehicles in the initial target market for iGas burn around 4 billion litres of diesel fuel annually: almost all of this is either imported as refined product or produced from imported crude oil. Replacement of this imported fuel with local natural gas has the potential to reduce imports by over $2 billion per year at current oil prices.”

Operational prototype
Bruce Hodgins, Vice President, Market Development for Westport Innovations Inc. has confirmed his company has an agreement to supply a limited number of GX engines for use in prototype iGas trucks in Australia. He added, “Westport is working closely with iGas to integrate the Westport GX engine with the iGas system to optimise overall performance, range, and cost with the objective of developing a CNG fuel storage system to complement the Westport technologies.”

The Westport GX engine was certified to Australian Design Rules (ADR) 80/02 standards in 2007 and has approximately 50 per cent less particulate matter emissions and 25–29 per cent less greenhouse gas (GHG) emissions relative to an equivalent diesel engine. Westport has recently certified the GX 15 L engine to ADR 80/03 standards, which comes into force in January 2011.
Argentina New Gas Could Cover 50 Years
by  Ignacio Pereyra and Jan-Uwe Ronneburger, dpa, Berl|Knight Ridder/Tribune Business News, December 08, 2010

A shale gas field was found in the southern Argentine province of Neuquen that is expected to produce natural gas to cover the country's needs for 50 years, Argentine President Cristina Fernandez de Kirchner said Tuesday.

"We are very happy because this is going to keep up the country's growth, an economic model based on growth, accumulation, wealth generation and income distribution," Fernandez de Kirchner said in Buenos Aires.

The field was found in the Patagonian town of Loma de la Lata, in Neuquen, some 1,100 kilometres southwest of Buenos Aires, during explorations carried out by the Spanish-Argentine firm Repsol-YPF.

The find triples the company's natural gas reserves in Argentina, according to government estimates, although no details were released as to the actual size of the gas field.

Shale gas is technically more challenging and more expensive to extract than other forms of natural gas. However, high prices for natural gas on the world market make it worthwhile.

Energy is cheaper in Argentina than in global markets, due to state subsidies and price caps. Partly as a result of that, the country does relatively little to save energy. Poor building insulation, particularly in new construction, results in excessive use of air conditioning and heating.

Natural gas has long been extracted in Loma de la Lata. Indigenous peoples of the Mapuche community regularly protest over the drilling, which they say pollutes the air, the soil and underground water
 

Range Hedges 80% of 2011 Gas Production
by  Jack Z. Smith|Fort Worth Star-Telegram, Texas, December 08, 2010

Range Resources wants to ensure that it has a steady stream of cash to pay for its 2011 developmental drilling program. The Fort Worth-based company will focus on the Marcellus Shale natural gas play in Pennsylvania, where it has a huge leasehold of 1.2 million net acres and steadily escalating production.

Accordingly, Range already has "hedged" more than 80 percent of its 2011 gas production, Rodney Waller, senior vice president, said Tuesday. Hedging involves entering into contracts to secure a guaranteed price for future production.

Range's percentage of hedged gas is the highest among large independent producers surveyed by the Raymond James & Associates investment firm. The survey showed that 66 percent of 2011 natural gas production is unhedged, leaving no protection for producers if gas prices drop.

Marshall Adkins, Raymond James gas analyst, said in a note to clients that "many companies were reluctant to layer on hedges with gas prices so low," compared to expectations and much-higher prices in 2008.

Some producers believe that, with gas prices already low, they aren't likely to drop much more. If prices rise substantially next year, they want to benefit fully from the higher prices, rather than being locked into a more modest hedged price. Energy analysts, however, generally expect continued low prices through at least most of 2011.

Range has locked in a net price of $5.12 per million British thermal units for its hedged 2011 gas. The net price is the actual hedged price of $5.56 per million BTU, minus the cost of 44 cents per million BTU for securing it.

The $5.12 price is well above current gas prices, which have been between $4 to $4.50 in recent weeks. In futures trading Tuesday on the New York Mercantile Exchange, gas closed at $4.39, down 9 cents, in contracts for January delivery.

Range's hedges on gas prices "assure us of a fixed amount of cash flow per quarter," Waller said. "We're just trying to lock in specific cash flows, because we have these big development projects we're working on."

Range recently announced that it plans to sell its properties in North Texas' Barnett Shale, where it produces mainly dry gas. It's putting its marbles on the Marcellus and other areas where it can get more revenue from liquids production -- oil and natural gas liquids such as propane and butane -- which are commanding appreciably more attractive prices than natural gas.

Marcellus gas also draws premium prices because it is close to the huge Northeast market.

Range's 2011 focus is also on the Marcellus because its wells there are showing strong results.

In this year's third quarter, Range brought online 18 horizontal Marcellus wells in southwestern Pennsylvania. The average initial seven-day production rate was the equivalent of 8.5 million cubic feet of natural gas per day. A single well could yield more than 5 billion cubic feet of gas over its producing lifetime -- more than twice the expected output of a typical Barnett Shale well.

Range's Marcellus production was the equivalent of 191 million cubic feet of gas per day as of Sept. 30 and the company expected to hit 200 million to 210 million cubic feet by year's end. The company hopes to double Marcellus production to 400 million to 420 million cubic feet per day by the end of 2011.