ACT News 2017

Quantum for $8.4m Q-VP650 Order

February 15, 2016 in CNG, Companies, industrial by Rich Piellisch  |  No Comments

Multi-Cylinder Trailer Orders for XNG Virtual Pipeline

Quantum Fuel Systems late last week disclosed a purchase order from Xpress Natural Gas for $8.4 million worth of compressed natural gas equipment for XNG’s “virtual pipeline” services – and said that the deal includes options for $13 million more.

Quantum says it has a P.O. for 15 of its new Q-VP650 ‘virtual pipeline’ trailers for $8.4 million from XNG – Xpress Natural Gas.

Quantum says it has a P.O. for 15 of its new Q-VP650 ‘virtual pipeline’ trailers for $8.4 million from XNG – Xpress Natural Gas.

Quantum is to supply 15 of its new Q-VP650 trailers, each of which has 51 vertically mounted Type IV cylinders able to hold a collective 650,000 standard cubic feet of natural gas at 5000 psi. Delivery of the first 15 units is to start in the second half of 2016 following regulatory approval for the Q-VP650 trailer.

“The trailers will be used to supply natural gas to customers throughout North America that lack access to or capacity on existing pipelines,” Quantum says. The firm says that its virtual pipeline solution “offers higher capacity and storage at pressurizations above what is currently available in the marketplace making the Q-VP650 an innovative and industry leading technology.”

‘The Future of CNG Storage’

“Short to medium distance shipping of CNG is more cost effective than shipping [LNG/liquefied natural gas] and many other fuels,” Quantum says. Products such as the Q-VP650 “can open up a broader group of both domestic and international industrial users of low cost natural gas.”

“Our trailer offers higher capacity than any other trailer in the market today and is a testament to our ability to engineer the future of CNG storage,” Quantum presidnet and CEO Brian Olson said in his firm’s XNG release.

Pipelines Can’t Cut It

“We believe there are far-reaching opportunities for virtual pipeline distribution of compressed natural gas. Industries and gas-fired power plants need very large quantities of natural gas to operate and the demand for natural gas is growing and will not be met with traditional pipelines alone.”

“The engineering design and high capacity storage of Quantum’s new virtual pipeline trailer will allow us to substantially improve our transportation efficiencies in delivering CNG to our customers,” XNG CEO John Nahill says in the Quantum announcement.

Approval Is Crucial

If XNG exercises its options, 20 additional Q-VP650 trailers and system upgrades will have delivery dates starting in 2017, Quantum said.

Quantum notes that the XNG order is subject to cancellation and/or price reductions at the option of XNG if Quantum fails to obtain requisite regulatory approvals for the Q-VP650 trailer by August 1, 2016.

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Source: Quantum with Fleets & Fuels follow-up




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