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American Power Group signs remote flare capture agreement

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Hydrocarbon Engineering,

American Power Group Corp. has announced that its subsidiary, American Power Group Inc. has entered into remote flare capture and recovery and NGLs off-take agreements to support their Trident NGL Flare To Fuel Capture and Recovery Services in the Bakken shale region of North Dakota.

APG entered a Flare Capture and Recovery Service Agreement with a multi-billion dollar independent energy company engaged in the acquisition, exploration, development, and production of crude oil, natural gas, and NGLs who will initially contract two of APG/Trident's flare capture and recovery systems.

The World Bank estimates about 4.9 trillion ft3 of gas from the world's oil and gas production is flared off by the oil industry every year. In January 2016, North Dakota's Bakken flare capture requirements increased from 75% to 80% and are set to increase again in November 2016 to 85%. APG's flare capture and recovery services are marketed to oil and gas producers who contract use of APG's modular and mobile NGL processing system. In addition, APG uses their proprietary process to convert the flared gas into hydro-carbon liquids, commonly referred to as NGLs or Y-Grade. For this contract, APG will be selling the Y-Grade as feedstock for further processing by fractionators who separate the Y-Grade stream into purity products such as propane, butane, and natural gasoline.

A new opportunity for Trident's future capabilities will be centered around the recently announced federal methane capture requirements placed on the oil and gas industry.

Lyle Jensen, American Power Group Corporation's Chief Executive Officer stated, "With the price of oil and NGL's firming up from their January 2016 lows we are truly excited about this new game-changing revenue stream and the significant long-term value opportunity it presents for our shareholders. While there are multiple variables involved, generally speaking, we expect a million cubic feet per day of flared wet gas will generate anywhere from two million to three million gallons of quality Y-Grade on an annual basis. Our current mobile and modular systems are designed to process a million cubic feet per day of wet flared gas but, based on new customer inquiries, we are also looking at systems which can process much higher volumes per day of flared gas."

Mr. Jensen concluded: "In addition to the Bakken shale region, we have begun to receive inquiries from the Permian and Eagle Ford shale regions of Texas which have the highest number of operating rigs in North America. With today's new oil price realities, the oil and gas producers are continually looking for lower cost operating solutions and everyone is looking to convert waste energy into usable energy, especially when it can also significantly improve air quality and our carbon footprint." 

Edited from press release by

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