AmericaCNG's initial approach is to offer fuel supply agreements to the oil and gas industry and transportation industry.
"Once we have customers that are buying a sufficient amount of LNG then we will start building our larger plants. There is a massive race on right now and some of the companies that are building these large plants are trying to sell fuel for 2016 to 2017," Farley commented. "That is a very hard sell to make. It's not easy selling six months out, much less two or three years out."
Farley said the company has been contacted by two major oil and gas companies that are constructing large LNG plants to buy supply from AmericaCNG in September until they get their plants built.
AmericaCNG was first established in 2011 with a focus on the CNG market. While the company is still committed to CNG, it is necessary in some locations to convert methane to LNG first and then transport the LNG to a CNG station, Farley commented.
A "whiskey idea" prompted Joseph Farley to establish a company in 2008 to serve the natural gas flowback market. However, agreements that had been reached with producers for flowback services fizzled as natural gas producers began to see that natural gas prices were going to fall.
"We got in at the exact wrong time as far as flowback work," said Farley.
Today, the company's approach is to form strategic alliances with producers in which no money changes hands unless the partner performs.
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