propane autogas - gtsegtsummitexpo.socialenterprises.net/program/2018... · – nearly 80% of the...
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Confidential: Ferrellgas, LP
Propane Autogas Unparalleled Value
Confidential: Ferrellgas, LP
! ~30% Employee Owned
! Started in 1939 by A.C. Ferrell
! Fortune 300 Propane Retailer
! More than 5,000 employees
! Over 600+ retail outlets
! 185,000,000 Gallons of Storage Across the USA
! Fleet of more than 4,000 vehicles
! Serving nearly 1 million Customers
! Delivering nearly 1,000,000,000 (1 Billion) gallons per year
! NYSE listed: FGP
Confidential © Ferrellgas, L.P
Confidential: Ferrellgas, LP
Procurement –! Ferrell NorthAmerica –! Comprehensive
Procurement Management
–! Risk Protection –! Supply Management –! Wholesale –! National Distribution –! 146 Transport
Tractors
Cylinder Exchange –! Blue Rhino –! Largest LPG tank
exchange company in the U.S.
–! Over 46,000 retail selling locations nationally
–! Acquired Mr. Bar-B-Q, a leading provider of high quality bbq tools
–! Builds Allocation
Sable Environmental –! Headquartered in TX –! Midstream Energy –! Saltwater Disposal
Facilities
–! Permitted Throughput of 150,000 bbl / day
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Cylinder Exchange
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Bridger Logistics –! Headquartered in TX –! “2014 Midstream
Energy Co. of the Year” – O&G Awards
–! Services include trucking, terminaling, pipeline, rail, and maritime.
–! Inc. Magazine’s “Fastest Growing Energy Company” in 2013
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Midstream Operations Traditional Operations
Retail –! Ferrellgas –! Largest Division –! Retail / End User
Sales & Support
–! Residential, Ag, Industrial, Commercial, National Accounts, Autogas
–! Full Service Installer –! Full Service Supplier –! 1,600 Bobtails
Confidential: Ferrellgas, LP
Why Do Fleets Use Propane Autogas?
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Clean. Domestic. Abundant. Safe. Inexpensive.
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Clean Clean Burning
–! 24% reduction in Greenhouse Gas (GHG) emissions. –! 20% reduction in Nitrogen Oxide (NOx) emissions. –! 60% reduction in Carbon Monoxide (CO) emissions.
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Clean Infrastructure –! Non-EPA Regulated –! Non-Carcinogenic –! Not a Groundwater Contaminate –! Zero Emission Fill Nozzle –! Zero Risk of Spillage
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Domestic • 98% USA Produced
• ~70% Sourced from Wet Natural Gas • ~30% Sourced from Crude Oil
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Confidential: Ferrellgas, LP
Abundant •! Net Exporter of Propane
–! Billions of gallons exported each year due to vast supply
•! Propane Inventory –! We have more gallons in storage than ANY nation in the world
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Confidential: Ferrellgas, LP
Abundant & Growing Supply Increase in Natural Gas Liquids Production From U.S. and Canada Shale Gas (Million Gallons per year)
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Propane
Ethane
Butane
Pentanes+
3.6 Billion Gallons of New Supply Expected between 2015 and 2020
1/HaynesvilleproducConincludesproducConfromothershalesinthevicinity,e.g.,theBossierShale
U.S. and Canada Shale Gas Production (Bcfd)
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
WesternCanada
AllOtherUS
EagleFord
Bakken
UCca
Marcellus
Haynesville/1
FayeReville
BarneR
Woodford
Source: ICF Consulting
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Confidential: Ferrellgas, LP
Safe • Tank Strength
– 20x More Puncture Resistant than Gas/Diesel Tanks
• Low Operating Pressure – 120-300 psi – Comparable to the pressure of brake lines
• Narrow Flammability Range – Ratios for air to fuel ignition (rich limit ÷ lean limit): – Propane: 4.5:1 – Diesel: 12.5:1 – Gasoline: 5.5:1
• Auto ignition Temp (in Farenheit): – Propane: 850° – Diesel: 600° – Gasoline: 495°
Source: PERC
Confidential © Ferrellgas, L.P
Confidential: Ferrellgas, LP
Minimal Investment / Maximum Savings
Confidential © Ferrellgas, L.P
Confidential: Ferrellgas, LP
Historically Inexpensive
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The current commodity market is unlike anything we’ve seen in years. With this environment, all commodity values are significantly depressed. Propane is currently around 47% less expensive than diesel and 40% less expensive than gasoline.
•! Average 60 Month Savings vs. Gasoline: 49% less expensive •! Average 60 Month Savings vs. Diesel: 56% less expensive
Confidential: Ferrellgas, LP
Stay in the Green
$0.00 $0.50 $1.00 $1.50 $2.00 $2.50
Gas Comparison
Diesel Comparison Propane: $0.95
Propane$0.95
Diesel: $2.50
Gasoline: $2.20
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Savings vs. Gasoline $27,000+ per Vehicle
Confidential: Ferrellgas, LP
Savings vs. Diesel $37,000+ per Vehicle
Confidential: Ferrellgas, LP
Additional Considerations
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Confidential: Ferrellgas, LP
Implementation Matrix Task Responsibility Estimated Timeframe
Select Tank & Dispenser Location FGP & Customer 1 Day
Finalize Supply & Equipment Agreement FGP & Customer 1 Week for Review
Order Dispenser Equipment & Tanks FGP 4 Week lead Time
Submit Blueprints &/or Obtain site permits FGP & Customer 4-8 Weeks
Contract with and manage subs for crash bollards and electric FGP 1 Day
Install pad Subcontractor 1 Week
Install bollards Subcontractor 1 Week
Install autogas dispenser & Tank FGP 1 - 2 Weeks
Obtain electric permits Electric subcontractor 2 – 4 Weeks
Complete electric hookups Electric subcontractor 1 Week
Train on safety and system operations. FGP 1-2 Days
Total Estimated Timing 16 – 22 Weeks
Confidential: Ferrellgas, LP
Setback Requirements
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Container Size Distance Requirement
501-2,000 gallons At least 25 feet from Important Buildings, or property lines that can be built upon.
More than 2,000 gallons At least 50 feet from important buildings, or property lines that can be built upon.
Condition Action to Take Combustible Materials (ex: woodpiles, dry grass / tall weeds, brush or chaparral) Maintain at least 10’ clearance around container
Exterior Sources of Ignition (ex: opening into direct vent appliances, mechanical ventilation air intakes, etc)
Maintain at least 10’ clearance around container
Overhead electric Lines more than 600 volts -typical electric wires from poles to buildings are 230 volts
Maintain 6’ Horizontal clearance from container. (imagine dropping a plumb bob straight down to the ground, now measure 6’ away from this point. The container must be at least this far back. )
Confidential: Ferrellgas, LP
Dispensing Station Footprint
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Site Prep •! Fleet Responsibility
•! Concrete Pad •! Electrical: 3 Phase •! Crash Bollards
•! Supplier Responsibility •! Permitting •! Maximize Space •! Optimal Tank Sizing •! Delivery Schedule
Average Large Transit Bus: 40’7” L x 8’6” W
Average ParaTransit (PT) Bus: 23’L x 8’W
Dispensing Station Footprint
Confidential: Ferrellgas, LP
Comparing to CNG "! Serviceability:! Shop Enhancements / Certification "! Added Weight: Average 300-900 additional lbs. "! Track Record: 13M Worldwide / 145k in US "! Cost of Conversion: 1.5x More "! Operating Pressure: 3,600 psi "! Station Downtime: Contingency Plan / Availability "! Fueling Station Cost: $500k - $1.5M+
LPG: 46 Usable Gallons CNG: 20 GGE
Confidential © Ferrellgas, L.P
Confidential: Ferrellgas, LP
Scalability Scalability
One (1) 1,000 Gal Tank One (1) 2,000 Gal Tank
One (1) 2,700 Gal Tank One (1) 30,000 Gal Tank
Confidential: Ferrellgas, LP
Contingency Planning
•! You’ll Be Prepared For: –! Natural Disasters –! Power Outages –! Emergency Evacuations –! Fuel Supply Shortages
Confidential: Ferrellgas, LP
• 19 out of 25 – Nearly 80% of the Nations 25 Largest School Districts Rely on Propane
• 560,000 – The approximate number of students riding propane buses every day in 2015
• 24,000,000 (24 Million)
– LP Gallons estimated to be Consumed by Schools for Transportation each year
• $28,800,000 (28.8 Million)
– Dollars Saved in 2015 by Schools running Propane Buses
Industry Estimates: # PERC Estimates 8,000 LPG Buses in US # Average 70 passenger capacity # Average 3,000 gallons per bus, per year # Average savings $1.20 per gallon
Proven Technology – Fact Check
Confidential © Ferrellgas, L.P
Confidential: Ferrellgas, LP
Robert C. Little Autogas Sales Manager
469-571-4970 [email protected]
Confidential © Ferrellgas, L.P
Decisive Value in Propane Autogas