Monday, February 08, 2010
Low Btu Gas

The US DOE estimates that approximately 17% of the known gas reserves in the continental United States are below pipeline quality due to high nitrogen content, which equates to approximately 32 Tcf of high nitrogen gas.  The only use for this gas has historically been to install a nitrogen extraction unit at or near the wellhead to remove the nitrogen and sell the gas into a pipeline.  The problem with this process is it is expensive and the volumes are small.  SilverPoint has uncovered another use for this gas that is economically viable and will create a market for significant quantities of this gas.  We have identified numerous markets in the United States where this concept is applicable and are devoting significant resources to prove out this model across the country.

  
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