ADI gathered and analyzed commercial data for small-scale LNG and CNG applications across the Bakken, Permian, and Marcellus plays. The research quantified compression costs, liq\uefaction fees, and trucking rates to define current market margins for midstream operators. Strategic implications focused on the infrastructure lag in these plays, creating arbitrage opportunities for mobile fuel delivery to drilling and fracking sites.
The client
Midstream energy service provider
The situation
Limited midstream takeaway capacity leading to high gas flaring and demand for mobile fuel alternatives in remote drilling sites.
ADI’s contributions
Midstream margin benchmarking
ADI quantified the “wellhead-to-burner-tip” cost structure for mobile fuel, identifying the primary drivers of provider profitability.
Structured expert interviews
ADI conducted 24 targeted interviews with liq\uefaction operators and midstream experts to validate regional pricing.
Regional infrastructure analysis
Evaluation of pipeline constraints in the Marcellus identified unique market opportunities for mobile CNG delivery.
Multi-fuel competitive benchmarking
Assessment of LNG, CNG, and diesel across five criteria provided clear technical fit-for-purpose guidance by end-use.
Key outcomes
- Identification of geographic arbitrage opportunities and high-margin sub-plays for small-scale LNG and CNG market entry.
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