1. Expanding Your Distribution Network Beyond the Transmission Pipeline

2. What is a “Virtual Pipeline”?
Compressor site on pipeline
Full trailer
Customer offloading facility
Empty trailer returns for refilling

4. What is a Gas Island?
Isolated distribution network of pipeline connects users within a defined area
Industrial
Commercial
Residential
Offloading station feeds isolated distribution network that services end users
“Virtual pipeline” of tractor trailers delivers compressed natural gas (CNG) to the offloading station

5. Gas Island Partnership LDC Responsibility
Constructs, owns, and operates the gas island distribution network
May or may not provide natural gas to the gas island
Maintains relationship with customer, including direct billing

6. Gas Island Partnership Virtual Pipeline Provider Responsibility
Constructs and operates the offloading station
LDC or “virtual pipeline” provider may own offloading station
Sources natural gas from LDC or independently
Compresses natural gas, loads, and transports it by tractor trailer to offloading station
Provides service 24/7
Removes offloading station equipment when or if gas island is connected to the rest of the pipeline network

7. Why Build a Gas Island?
Serve new customers in advance of planned transmission pipeline extension
Distribute to new customers not feasible to serve with traditional pipeline extension
Encourage economic development and preserve jobs

8. Why Build a Gas Island?
Generate revenue from customers in advance of transmission pipeline construction
Reduce time to market

9. First-in-the-Nation Gas Island
Vermont Gas Systems (VGS) developed a local distribution network to serve customers in advance of their planned transmission pipeline extension
VGS chose NG Advantage (NGA) as its “virtual pipeline” service provider
Gas island launched in Middlebury, Vermont

10. First-in-the-Nation Gas Island
VGS supplies natural gas to NGA
NGA compresses natural gas and transports it to offloading site
VGS bills customers and maintains direct relationship with them
Almost six miles of low pressure piping connects a large dairy processing cooperative, a hard cider producer, a college, and hospital

11. What are the Logistical Challenges?
Investing - capital requirements
$5,000,000 - $10,000,000 per compressor station
$500,000 for carbon fiber trailer
Optimizing trailer capacity when filling trailers in heat and cold
Emptying trailers completely
Managing just-in-time routing of trailers

12. What are the Technological Challenges?
Sophisticated real-time data management requirements
SCADA tools for knowing when trailer is full or empty and when system needs to switch over to 2nd trailer
Telemetry on trucks and compressors
Telemetry to monitor customer sites
Video to monitor and assist drivers

13. 9/13/2016 Northeast Gas Association
SCADA

14. What are the Reliability Challenges?
Guarantee of firm service, when needed
Adequate storage to cover several days of operation
CNG , LNG
Redundancy
Backup supply contingent upon requirements of customer base

15. Contact Information
David Lavoie
Vice President, Business Development