Acme Asphalt plant located in central Pennsylvania is currently burning 725,000 gallons of propane a season. The average cost of propane delivered is currently $1.10 per gallon. The projected cost of energy for 2018 using propane is $797,500. The current propane cost is $12 per MMBTU.
By converting to LNG, the projected energy cost is now $599,046. The plant will burn 798,728 gallons of LNG at $.76 per gallon. The cost of delivered in LNG is $9.25 per MMBTU. The annual savings for this asphalt production plant is $198,454.
What makes this so attractive for Acme Asphalt is that the cost of the delivered in LNG also includes the equipment need to convert the plant from propane to LNG. Pioneer LNG can offer cost of conversion equipment as a function of delivered in MMBTU when end users sign long term supply agreements. In addition, Pioneer LNG can offer multiyear hedging programs.
- Client Acme Asphalt plant
- Location Central Pennsylvania
- Number of gallons 725,000 gallons of propane per season
- Year converted 2018
- Annual savings $198,454