Xpress Natural Gas (XNG) said on Tuesday it will supply compressed natural gas to Schweitzer-Mauduit International’s (SWM) Ancram, N.Y. facility, expanding XNG operations into New York.
SWM, which is the largest producer of cigarette papers in the world, will receive CNG via tractor-trailer from a production facility and distribution terminal being built in partnership with Direct Energy.
The Manheim, N.Y., facility is anticipated to have completed construction and be fully operational by the fourth quarter of 2014.
In the meantime, SWM will receive gas from XNG’s facility in Eliot, Maine.
“Because of the delay in pipeline infrastructure in New York, and the constraints on a pipeline expansion into more remote regions due to the area’s topography, businesses like SWM were at a disadvantage,” said John Nahill, CEO of XNG.
XNG is positioned to offer energy alternatives to businesses not on the established pipeline network, he said.
XNG is planning further expansion throughout New England, New York and the Canadian Maritimes.
“With the rise in oil prices, the expensive conversion costs associated with liquefied natural gas and the expense and uncertainty of pipeline expansion in these regions, conditions are ideal for the emergence of a CNG trucking industry,” said Nahill.
XNG operates the largest fleet of high-capacity all-composite CNG trailers in North America. The company currently offers both LNG and CNG service across New England and New York, with customers ranging from industrial manufacturing, colleges, hospitals and local utilities.
XNG also provides service to eastern Canada, and is the only provider both licensed to export trucked CNG by the U.S. Department of Energy, and licensed to import trucked CNG by the National Energy Board of Canada.