1. Kelley GTM Manufacturing, L.L.C.
2100 Spruce • Amarillo, TX 79103
(806) 576-4600 Phone • (806) 373-9473 Fax
www.gogtm.com
Manufactured Under License from NCF Industries, Inc.
2. Kelley GTM L.L.C.
KGTM is a company designing, manufacturing and
retesting Gas Transportation Modules, based in
Amarillo, Texas. It is 60% owned by the Kelley Family
of Companies and 40% owned by Pressure
Technologies plc owners of Chesterfield Special
Cylinders.
The Kelley Family has led the specialty gas
transportation industry with the most progressive
transportation developments for over half a century.
Chesterfield Special Cylinders has been a leader in
high pressure cylinder technology for over a century.
3. Kelley Compressed Gas History
• 1946 – Jack B. Kelley starts selling helium
• 1959 – JBK buys first tube trailer (3AA)
• 1960 – JBK designs and builds world’s first Jumbo
helium tube trailer (3AAX)
• 1969 – JBK builds first optimum helium trailer (3T)
• 1990’s – Kelley explores Type 3 and Type 4
technologies for compressed gases
• 2004 – Kelley begins relationship with NCF
4. KGTM History
• 2005 – Joint R & D with NCF Industries
• 2006 - GTMM Formed, testing continues
• 2008 – GTMM achieves US DOT Manufacturing
approvals
• February, 2009 – GTMM receives approval of the
KGTM, SP 14266
• Summer 2009 – First shipments
• April 2014 – US DOT Retest authorization received
• May 2014 – Unit 200 produced
6. GTM Specifications
• 9 Steel Vessels hoop-wrapped with resin
infused fiberglass. Low cost, readily available
welded pipe.
• Built & tested to US DOT SP 14867.
• Each vessel delivers 13,734 ft³ (389 M³) of CNG
at 3,250 psig.
• Each GTM delivers 123,606 ft³ (3,500 M³) of
CNG at 3,250 psig.
7. GTM Module for CNG Storage of
123,606 SCF (3,500 m3) of CNG at
3,250 PSIG (224 bar)
Single GTM Solution for delivery of
123,606 SCF (3,500 m3) of CNG at 3,250
PSIG (224 bar)
Dual GTM Solution for delivery of 247,212 SCF (7,000 m3) of CNG at 3,250 PSIG (224 bar)
8. GTM Mother-Daughter CNG Transport Industry Model
Mother station Daughter station
Takes gas from existing gas
supply line, flare gas or LNG
plant
GTM vehicle delivers gas to daughter station
Receives gas and dispenses it to
the end user (e.g. oil rigs using
gas power generators)
In some cases vehicle takes flare gas from oil rigs
Max. 150 miles
10. Case Studies
• Stranded or Flare Gas
– Clients have used GTMs in order to move stranded gas or
capture gas that was being flared and delivering it to market.
– By 2014, the U.S. EPA will discontinue flaring gas and the
number of clients capturing previously-flared gas will sky rocket.
• Examples of Clients
– Bakken Express in the Bakken Shale grounds.
– FlareSolve
– CPSL
– Montana Dakota Services
11. Case Studies
• Gas to supply stranded Commercial/Industrial end
users
– Many of our clients use GTMs to transport CNG from a
pipeline/fueling station to a stranded manufacturing facility for
energy and fuel purposes.
• Examples of Clients
– NG Advantage
– Powerserve
– Martin Machinery
– Compressed Energy Systems
– SLF TechSys
12. Case Studies
• Supply CNG as a fuel for drilling and fracking rigs
– Many clients are studying converting their drilling, fracking rigs
from diesel fuel to CNG in order to save costs on fuel.
– These clients utilize GTMs to bring CNG from a pipeline/fueling
station to their on-site locations.
• Examples of Clients
– Chesapeake
– Apache
– Cabot Oil & Gas
– Bison Fuels
– Anadarko Petroleum
– CLEANCOR Pressure Vessels
– CanGas Solutions
13. Case Studies
• Mother/Daughter CNG Application for vehicle
refueling
– Clients in the CNG vehicle market or clients who are studying
converting their fleets from diesel to CNG vehicles use GTMs to
transport CNG from the Mother station and to act as the storage
unit for CNG being dispensed from the Daughter station
• Examples of Clients
– Compressed Energy Systems
– Pinnacle – AT&T
– Cumberland Natural Gas
14. Case Studies
• Helium, Hydrogen & Other Gases
– Some of our clients use GTMs to store and transport helium,
hydrogen and many other gases with industrial and technical
uses.
– Examples of Clients:
• U.S. Government – Department of Defense - Helium
• Ventech Refineries – Nitrogen, Hydrogen
• Tertiary Oil Recovery
– OilSteam
• Gas Utility Applications
– Questar
– PG&E (Pacific Gas & Electric)
15. Case Studies
• Energy Storage Solutions
– Clients will also use GTMs to store compressed gases for
energy purposes.
• Examples of Clients
– Clean Energy Systems
– Sustain X
– Emerald H2
16. Case Studies
• Rail Locomotive Tender
– Bright Energy Services – C-Zero Engineering
– Cummins Engine Co.
– BNSF Railroad
• Only Rail Certified CNG transport and storage
system available
– Weight not an issue on rail
– Stackable so 4 KGTMs can ride on one flatcar
– Our existing FRA acceptance is critical to our customer
– Market size: EIA expects rail to use 1 trillion Btu in 2017 and
148 trillion (35% of usage) by 2040 reference case
– Trials scheduled for June 2014 with KGTMs
17. International Clients
• Total Support Energy – Nigeria
• SGN – Dominican Republic
• EGP – Peru
• ARCTAS – Colombia
• AccesGas – Mexico
18. Competitive landscape
KGTM Luxfer IGX Lincoln
Technology Type II steel Type III aluminum Type IV composite
Capacity 123,000 scf 358,000 scf 356,000 scf
Cost per scf $1.00 $1.50 $1.60
Approvals DoT for cylinders and the
module
DoT and ISO for
cylinders only
DoT and ISO for
cylinders and the module
Fire test Survives 1,400 F for 45
minutes
Rated to 230 F only Rated to 230 F only
Passed rail crash test Yes No No
Integrated Manufacturing Yes No Yes
Experience 68 years 5 years 20 years
Fatal accidents No No Yes
19. KGTM Planned Development
• 20’ lighter wall/helical wrapped cylinder
– Will weigh less – 3,000 pounds savings
– Be higher pressure – 3,600 psig working pressure
– Carry more gas – pipe ID, pressure add 10,000 scf
– Will fit into the existing, tested and approved packaging
– FEA complete, POC vessel in process
– Expect DOT approval by December 2014
• 40’ LW/HW
– 85% of the Titan in volume, 60% of the cost
– Production cost not linear so margins are higher
– Will require new packaging testing
– Expect DOT approval by July, 2015
20. KGTM Standards Development
• ISO 11515 – ultra large composite cylinders
– Appendix to the standard being prepared by CSC
– Covers existing cylinders and development program
– ISO agreement for work program expected December 2014
– Appendix approval expected July 2016
– Allows access to all ISO signatory markets
• Individual market approvals by special permit
– Israel
– UK
21. Partnership Marketing Initiatives
• Aluminum Type 3
– Negotiating with Worthington Industries and CNG Cylinder Int’l
– ISO authorization in place – good for international market
– Directly compete with Luxfer/IGX offering
• All composite Type 4
– Exploring offering from S. Korea
28. DESIGN QUALIFICATION TESTS
• (a) Pressure cycling tests: All cycling tests shall be performed by
hydrostatically pressurizing the tube between zero and the
designated pressure at a rate not to exceed 4 cycles per minute.
Adequate recording instrumentation must be provided if the
equipment is to be left unattended for periods of time. All tubes
used in the cycle test must be destroyed. Note: 24” diameter, 60”
length test specimens for Hot/Cold/Environmental vs 24” diameter,
20 feet length due to constraint of testing facilities is authorized.
– (1) Ambient Temperature: A representative tube shall be tested at ambient
temperature without showing visible evidence of distortion, deterioration or failure
as follows: Each tube tested at a minimum must withstand 10,000 pressurizations
between approximately zero and service pressure, followed by at least 30
pressurizations between zero and test pressure. After completion of the test, the
tube shall be pressurized to burst in accordance with the following paragraph (b),
and the burst pressure recorded.
29. – (2) Environmental test: A representative tube shall be tested without showing
visible evidence of distortion, deterioration or failure as follows: (i) The tube shall
be conditioned for 48 hours at zero pressure, a minimum 140F, and a minimum
95% relative humidity. (ii) Pressurize from zero to service pressure for 5,000
cycles a minimum 140F, and a minimum 95% relative humidity. (iii) Stabilize at
zero pressure and ambient conditions. (iv) Pressurize from zero to service
pressure for 5,000 cycles at minus 60F or lower. (v) Stabilize at zero pressure and
ambient conditions. (vi) Pressurize form zero to test pressure for 30 cycles at
ambient temperature.
– (3) Thermal cycling test: A representative tube shall be tested without showing
visible evidence of distortion, deterioration or failure as follows: (i) At ambient
temperature from zero to service pressure, cycle 10,000 times followed by 30
cycles from zero to test pressure. (ii) Hydrostatically pressurize to service
pressure and submerge and hold tube for 10 minutes in 200F fluid; transfer the
tube and submerge for 10 minutes into minus 60ºF fluid. Transfer time shall be
between one and three minutes, with the pressure in the tube controlled within the
range of service to test pressure. Repeat 20 times.
– (4) After passing this test, the tube must be burst-tested and the pressure
recorded.
30. • (b) Hydraulic burst test. One representative tube shall be hydrostatically pressurized to
failure as follows: (1) Pressure shall be applied at a uniform rate not to exceed 200 psi
per second, up to the designated burst pressure, and held for a minimum of 60
seconds; the pressure shall be increased to failure and the burst pressure recorded. (2)
The burst pressure of the tube must be at least 2.4 times the marked service pressure.
Failure must initiate in the sidewall and the tube must remain in one piece. The burst
pressure and failure must be recorded.
31. • (c) Gunfire test. One representative tube charged with air or nitrogen to service
pressure shall be impacted by a 0.50 caliber armor piercing projectile and a 0.50 caliber
“tumbled” armor piercing projectile. The composite tube shall be positioned so that the
projectile impact point is in the tube sidewall having hoop winding. The distance from
the firing location to test tube must not exceed 50 yards. Tested tubes shall reveal no
evidence of a fragmentation failure. Results of the tests must be recorded.
32. • (d) Fire Engulfment test. The composite tubes tested must be fitted with pressure relief
devices in accordance with § 178.BB-10 and charged with the intended lading to the
prescribed filling pressure or density. Charging with nitrogen or air is authorized only if
the subject tubes will be in non-liquefied gas service. A single tube and the completed
assembly shall pass a “pan fire test” using a pan at least 8” deep and extending beyond
the GTM on all sides 12 to 24 inches. 150 gallons minimum of diesel fuel or JP-4 shall
be ignited and allowed to burn out. The pressure in any tube shall be monitored and
shall at no time exceed the test pressure of the finished composite reinforced tube.
Results are acceptable if the contents do not vent or vent through the PRD. After
successfully passing the fire test, the single tube must be pressurized to burst as
required in § 178.BB-18(g) above, and the pressure recorded.
33. • (e) Rollover test. The complete assembly, charged to service
pressure shall be rolled or dropped from a height representing the
actual configuration during transportation. The assembly shall be
robust enough to withstand a minimum 8g load as evidenced by
typical shock load indicators. Results are acceptable if there is no
apparent damage to the piping, valves, or fittings resulting in loss of
contents.
34. CONTAINER IMPACT TEST
After the 6.7-mph impact test, inspection of the ISO container revealed that the structure had not sustained any visible
damage. The corner-to-corner (A1 to A2, B1 to B2, C1 to C2, and D1 to D2) measurements on each side face of the frame
showed no measurable changes in distance as a result of the impact test. The container being tested did meet the
requirements related to the SRS specification described in Section 41 of the UN Manual of Tests and Criteria and as a
result has satisfied all of the requirements outlined in Section 41at a gross operating weight of 44,000 pounds.
35. • (f) Forklift Puncture test. The complete assembly shall be puncture
tested as described in the application. As a minimum any tube
within the assembly shall be capable of withstanding level 2
damage as defined in paragraph 7.B above.
• (g) Qualification test results. A report of all tests for each design
qualification, describing test setup, procedure and results must be
submitted to the OHMSPA prior to production of the design.