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American Power Group announces upgrades to dual-fuel system

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LNG Industry,

American Power Group Corp. has announced recent upgrades to the S4000 Turbocharged Natural Gas® dual-fuel system.

The new Variable Fuel Management (VFM) software upgrade allows oil and gas drillers to adjust their specific site’s dual-fuel mapping calibrations to optimise performance for four different natural gas compositions, including CNG, LNG and two Btu levels of field gas, including up to 1450 Btu. This upgrade will help to better match the source gas to the corresponding dual-fuel optimisation table. American Power Group Corp. claims that S4000 customers are experiencing up to a 10% improved diesel substitution rate, which substantially improves their payback period, which is currently in the range of six to nine months, depending on the source gas. The VFM upgrade is in addition to recent display upgrades, as well as new telematics remote monitoring capabilities.

The President and Chief Executive Officer of American Power Group Corp., Lyle Jensen, said: “With the total number of US operating oil based drill rigs more than doubling since their lows in 2016 and an increased number quotes and follow on orders coming from the oil and gas fields in Canada, we have seen a resurgence in our oil and gas conversion revenue during our second fiscal quarter ending March 31, 2017. We expect to report March 2017 quarterly revenue of over US$1.1 million making it our highest overall revenue quarter in the past 2.5 years and our highest oil and gas revenue quarter in the past 3.5 years.

“A big contributor to the March quarter revenue was the fact that APG’s new upgraded S4000 Turbocharged Natural Gas® system has been selected by an existing prominent and innovative contract drilling customer to become a standard option on their next generation drill rigs.

“The future trend of the US driving global energy prices continues to look favourable. As OPEC nations continue to throttle back and reduce deliveries to American customers, a further draw down on US crude inventory levels could likely happen particularly now that the refiners are ramping for the summer driving season. The US EIA (Environmental Information Administration) sees inventory levels falling by 47 million barrels through the end of the year, which is a 9% drop from the current level. This projected decline is set to occur despite an expected sharp jump in US shale production. As a result, several energy experts forecast oil prices will move into the high US$50 to US$60/bbl range by the end of the year. APG’s stationary dual-fuel design continues to be recognised for its significant up time, ease of operation and significant economic benefits at the lowest total cost of ownership which is attracting follow on and new customer business.”

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