Galileo changing the game with LNG-tech
With production from Argentina’s Vaca Muerta shale formation expected to rise at a rapid pace in the coming years, local services provider Galileo Technologies hopes to make the most of its pioneering hardware to monetise gas discoveries from remote locations.
Using cutting-edge proprietary technological solutions, Galileo has come up with its Gas 3.0 project by proposing the installation of “virtual pipelines” to connect producing fields to consumers without the need to lay pipes.
“We noticed there was a distinct gas model in the world, and that this model has reached its limit, so we are bringing unique solutions to connect resources and monetise the gas,” says Galileo chief executive Osvaldo del Campo.
“We intend to manage a model that allows the transportation of gas to the market in a more cost-effective way than conventional solutions.”
According to Del Campo, Galileo’s virtual pipeline system reduces the investment required to perform gas gathering on geographically dispersed wells and gives the operator the possibility to sell gas directly to the consumer.
In order to achieve that, Galileo supplies Cryobox-Trailer liquefied natural gas stations as an alternative to produce from stranded wells. Once gas is transformed into LNG on-site, these portable and small-scale units are transported by road in cryogenic containers to their final destination for regasification.
“We have several business models. There are cases where we buy the gas to monetise it. We also provide transportation and liquefaction services, and there are times where we sell the technology and the client operates it,” Del Campo tells Upstream.
He says the technology developed by Galileo is competitive compared with some existing pipelines in Argentina, and much cheaper than building new pipelines.
“A pipeline has numerous problems, because it is a costly solution that sometimes is not used to its full capacity,” explains Del Campo.
“Our technology adapts to the clients’ needs, and our Cryobox-Trailer can be relocated within hours to liquefy natural gas at any site without any heavy lifting equipment.”
In Anchoris, in Mendoza province, Galileo built its first LNG-fired thermoelectric plant sourced from wells that are not connected to any pipeline network.
Operated by Methax, a subsidiary of Galileo, the 41-megawatt plant is the first gas-to-wire pipeline-free project in the world, using over 200,000 cubic metres per day of gas that was previously off the grid to cover the needs of 125,000 inhabitants.
Del Campo says Galileo is using 14 Cryobox-Trailer to produce LNG from stranded gas wells in the Malargue region in Mendoza to supply its plant.
The company already possesses a fleet of 70 cryogenic containers to transport LNG for regasification, but that number is expected to grow, as Galileo further expands its operations.
Del Campo says: “We started as a technology company 30 years ago and we have always worked on the development of new products. We invest a high percentage of our revenues in research and development, but we slowly started to become a services provider, which allowed us to expand our business, and now the services segment is the most important part of the company.”
Galileo is expected to end 2017 with $150 million in revenues, and Del Campo says the company is expanding at a rate of between 20% and 30% per year.
By Fabio Palmigiani
1 Dec 2017 00:00 GMT
Source: Upstream, The International Oil & Gas Source.