THE NATURAL GAS SUPPLY SOLUTION

FOR HONDURAS AND GUATEMALA

Proprietary Compressed Natural Gas (CNG) Technology & Lowest Cost Gas Transport
Introduction
INDUSTRY: Compressed Natural Gas
Andalusian Energy is a natural gas compression and transportation company using mature
(CNG) Containerized Logistics
conventional compression techniques, enhanced with a patented process refrigeration technology.
HQ LOCATION: Houston, Texas This allows us to fill and store approximately 50% more gas in the same size cylinder than other
CNG alternatives and achieve approximately 60% of LNG density. Using a proven proprietary
APPLICATION: natural gas fueled technology with composite cylinders that are approximately
powerplants in Honduras, Guatemala, El 60% lighter than steel, Andalusian is able to ship
Salvador, and Nicaragua as well as containerized CNG from the US Gulf Coast to Central
industrial gas consumers and applications
America for use in power plants at a price that is
for heavy duty gas fueled transportation
substantially lower than any CNG or LNG alternatives.
SUPPLY CHAIN: Plaquemines Parish Andalusian’s technologies have been effectively “de-
Louisiana compression facility with risked,” as each of the components has been in use and
continuous gas supply of containerized proven in commercial applications over many years and
CNG using conventional containerships thousands of cycles in harsh environments.
for virtual pipeline deliveries to the region.
Commercial containers will be carried on
Key Competitive Advantages
ship deck for incremental revenues and
import/export with US. ■ Price advantage over LNG competitors: Given the Project’s distance and volume, Andalusian’s
CNG solution is lower than the price for LNG due to (i) Andalusian’s significantly lower upfront fixed
PORTS OF DESTINATION:
cost structure for the compression, which is a small fraction of its LNG competitors, and (ii) the lack
Puerto Cortes, HN and Puerto Barrios, GT of need for an expensive and complex regasification terminal at the receiving end.
TIMELINE: Mid 2025 in service ■ Price advantage over CNG competitors: By using Intermodal ISO containerized CNG cylinders
IP: Multiple patents on fill & storage and standard ISO container ships modified to maximize natural gas containerized payloads,
Andalusian’s transportation costs are a fraction of that of CNG competitors. The proprietary “chill and
fill” technology allows for increased natural gas volumes per container, further cutting costs.
■ Reliability: By applying conventional container ships, any downtime or maintenance can be easily
overcome without any interruption in service to the end user’s power plants. Instead of relying on a
single ship, single terminal, and single pipeline, the redundancy in the containers, ships, and
equipment in Andalusian’s supply chain enable a superior delivery guarantee than alternatives.
■ Improved last-mile logistics: Andalusian Energy can deliver these proprietary CNG containers
to a port, and then these containers can be transported to power plants where there are no existing
pipelines and natural gas storage facilities. All our CNG competitors must deliver to a place where
there are existing pipelines and natural gas storage facilities.
Low-Cost Gas Virtual Pipeline
Andalusian Energy’s virtual natural gas pipeline over the water to the power plant by filling
containers at its compression facility plant on the US Gulf Coast, loading the containers onto
conventional container ships, dropping off the full containers at the delivery point in Honduras
and Guatemala and picking up the empty ones to be returned to the plant on the Gulf Coast to
sequentially repeat the process. Andalusian’s low cost, clean burning CNG is the best positioned
alternative to displace expensive and polluting diesel and heavy fuel oil currently being used in
Central America for base electricity production. Power plants utilizing the CNG would then have
the ability to charge lower power prices and receive higher dispatch, or some combination of the
two. We are uniquely positioned to supply and transport natural gas to gas users and make a
positive impact for the development and diversification of power generation, for the long term.

12333 Sowden Rd. Suite B • Houston, Texas 77080 USA

+1.866.905.5850 • www.aecng.com
virtual pipelines; real savings