‘Long-Term Agreement’ with Initial $20.6 Million Order
Hexagon Lincoln has entered into a long-term agreement with Certarus for the sale of compressed natural gas mobile pipeline modules “to the resurgent oil and gas exploration and production industry,” parent Hexagon Composites reports.
“As part of the agreement that runs through 2020,” states a release “Hexagon Lincoln has received an initial order for Titan 4 modules from Certarus” with a total value of approximately $20.6 million U.S.
Certarus is expanding “its already large” Titan fleet, Hexagon says.
‘Recovering Oil and Gas Market’
“The recovering oil and gas market is exploring all options to reduce costs of operations,” the announcement states. “The use of CNG in the oil field continues to increase due to higher flexibility than LNG and lowest distributed cost compared to diesel.
“Lower CNG prices relative to diesel, paired with higher transport efficiency, improve competitiveness of mobile pipeline operators.”
“We see an increasing adoption of natural gas to displace diesel, propane and burner oil to promote cost savings and reduce the environmental footprint,” Certarus president and CEO Curtis Philippon says in the Hexagon announcement.
Beyond the Oil Patch
“Certarus operates the largest bulk CNG trailer fleet in North America,” he said. “We are increasingly supporting customers outside oil and gas that can benefit from the large scale Certarus mobile pipeline. Hexagon designs some of the highest pressure, highest volume transport trailer systems available and proves to be ideal for our applications,” Philippon said.
Deliveries are to commence in second quarter of 2017 and continue through the first quarter of 2018.
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Source: Hexagon Composites with F&F follow-up