Capstone Turbine Corp. has received a new order and order releases for a C800 Signature Series microturbine and two C1000 Signature Series microturbines for two repeat oil and gas customers operating in the Marcellus Shale play.
E-Finity Distributed Generation, Capstone’s distributor for the Mid-Atlantic and Southeastern United States, secured the projects, which are both expected to be commissioned in July. Capstone microturbines were selected again based on proven reliability in the field, the responsiveness of the E-Finity service team and the improvements made to the new Capstone Signature Series product offering.
“A rebound in the oil and gas market is important to Capstone as we continue to improve our vertical market mix, with oil, gas and other natural resources comprising 38% of revenue compared with 22% of revenue in last year’s third quarter,” said Darren Jamison, Capstone’s president and chief executive officer.
The three microturbines, fueled by wellhead natural gas taken directly from the pipeline, will provide primary electrical power for multiple compression stations. The microturbines will act as the primary energy source for these remote sites and are designed to ensure a steady flow of power while keeping area emissions low, the company said.
According to the U.S. Energy Information Administration (EIA), natural gas production in the Appalachian basin from the Marcellus and Utica shales has grown significantly. A number of new pipeline projects, of which are in various stages of the approval process, could significantly boost the takeaway capacity out of the region by the end of 2018.
“We believe these orders, by two of our largest repeat customers, is an indication of a resurgence in the Marcellus and Utica Shale and a sign of activity for new feeder pipeline projects to come,” said Jeff Beiter, E-Finity’s Managing Partner. “This activity will have a significant impact for E-Finity’s planned downstream combined heat and power (CHP) projects, throughout its Mid-Atlantic and Southeastern territories, as it will provide more affordable natural gas to end-use customers,” added Mr. Beiter.
“As the oil and gas industry starts to rebound, we are beginning to see a revitalization of the Marcellus Shale play,” said Jim Crouse, Capstone’s executive vice -resident of Sales and Marketing. “Repeat orders like these allow us to further showcase Capstone’s industry-leading technology and save our customers money at the meter.”