Arrow Engine updates the A54 - Galileo Technologies

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Arrow Engine updates the A54 - Galileo Technologies
BAKER HUGHES                      EURO GAS                       GAS ENGINES
                          BIG STEPS IN LNG                  HYDROGEN BACKBONE INITIATIVE   SPECIFICATIONS AT-A-GLANCE
A KHL Group publication

                          JUNE 2021 | VOLUME 26 | ISSUE 5                                        www.compressortech2.com

                          Arrow Engine
                          updates the A54
                                                                FERC                           Galileo enters U.S.
                                                                assesses                       compression fleet
                                                                GHG emissions                            industry
                                                                BP’s big
                                                                investment
                                                                in Permian
                                                                infrastructure
Arrow Engine updates the A54 - Galileo Technologies
COMPANY NEWS
GALILEO COMPRESSION

New player enters
U.S. compression
fleet industry                                                                                    “We felt like with natural gas prices on the
                                                                                                  rise in the near horizon, this would be a good
                                                                                                  time to offer a compression service rental
Manufacturer of Cryobox & CNG stations now provides                                               fleet.”

compression services. By Keefe Borden                                                             Location is key advantage
                                                                                                  The plant’s proximity to the Marcellus gives

A
         steady increase in natural gas prices   hydrogen filling stations.                       it a competitive advantage that other leasing
         and the expectation among some              What Galileo has not done, until now, is     companies do not have, Foster says. It’s
         analysts that the prices will hold      to compete in the U.S. compression fleet         not cost effective to ship compression
has made the U.S. natural gas market more        business, a highly competitive niche market.     equipment from Midland, Texas to the
attractive on an international scale. More       Compression is a near universal need             Marcellus because freight is more than the
investors are looking at the market, and         among upstream and midstream operators.          rental rate would cost over an extended
some of them are expanding here.                 Some prefer to own and maintain their            period.
    Galileo Technologies, a global               own equipment, but a significant portion of          In addition, it recently opened a satellite
compression manufacturer and service             the energy market prefers an asset-light         plant in Midland, Texas for service, repair,
provider with more than 30 years of              approach, one which allows them to rent          parts and overhaul. The company also has an
experience, is one of those companies. It        equipment owned by someone else.                 office in Arcadia, California to manufacturer
recently launched Galileo Compression USA,           “What we do see is an opportunity is the     the CNG product line. That office also doubles
which is led by Ronald J. Foster.                compression fleet business, especially in a      as a parts distribution center.
    Galileo Technologies is a global company     couple of the basins that we think we would          Another competitive advantage for Galileo
with headquarters in Buenos Aires, Argentina     be very attractive in with our location in the   Compression is that the company makes
but with a presence in more than 70              Northeast that gives us a great competitive      its own compression package unit using
countries. It has been operating in the U.S.     advantage into the Marcellus,” Foster said.      proprietary technology, including a frame
for more than 10 years in various segments
of the energy industry outside of the             Galileo’s MP1600
compression leasing industry.                     Compression
    The company has a plant in Middlesex,         Package.
New Jersey that manufactures Cryobox, a
600-horsepower, four-stage compressor
used to take natural gas from the wellsite
and converting it to liquefied natural gas
(LNG) for transport to power producers,
primarily utilities.
    Galileo also has a robust business in
California making compressed natural
gas (CNG) filling stations. Galileo makes a
dispensing system for vehicles running on
CNG complete with a point-of-sale terminal.
In Europe, the company recently launched

46 | COMPRESSORTECH2 | JUNE 2021
Arrow Engine updates the A54 - Galileo Technologies
COMPANY NEWS
                                                                                                              GALILEO COMPRESSION

                                                                                                   everything at its plant, with the exception
                                                                                                   of the engine. “We’re trying to cut out all of
                                                                                                   that and make sure we maintain the entire
                                                                                                   integrity of the package,” he said.

                                                                                                   ESG focus
                                                                                                   The concerns of producers and midstream
                                                                                                   operators are evolving and, over time, ESG
                                                                                                   has become more important. Galileo’s focus
                                                                                                   has shifted along with its clients
Galileo’s MX1000 Compression Package.                                                                  “The U.S. oil & gas compression market
                                                                                                   is radically changing as its participants are
that matches the engine sizes produced by         approach,” he said.                              increasingly shifting to asset-light, high-
major manufacturers. The result is greater            Galileo Compression’s clients are E&P        technology solutions with an ESG focus,”
efficiency and lower fuel burn. The modular       producers and midstream operators who            said Osvaldo del Campo, CEO of Galileo
construction of the units makes it flexible,      need compression services and want to keep       Technologies.
minimizing maintenance costs and reducing         an asset-light balance sheet. It has units           Part of the timing for entering the U.S.
downtime, he said.                                from 100 horsepower to 2000 horsepower           market right now is finding the right person
                                                  that can be used for a single well gas lift to   to lead into a competitive niche marketplace.
Manufacturer of technology                        a multiple pad gaslift and high-horsepower           Foster will oversee the company’s
Galileo uses state of the art technology and      gathering stations among others.                 compression sales and fleet operations in
proprietary modular compression to offer a            Galileo Compression is a compression         North America. He has more than 40 years of
full line of service applications with modern     services fleet, he said. Its clients are not     energy services experience with companies
SCADA monitoring.                                 leasing a compressor, but a compression          such as Halliburton and Dresser Industries.
    “We are a manufacturer of technology          service that includes the unit, its                  He also has about two decades of senior
first and foremost, so before launching           manufacture, fluids, installation, service       management and executive experience in
into the U.S. with a dedicated compression        and maintenance. “You’re going to rent           the oil and gas compression industry. Most
business, we wanted to have our                   our service, not a piece of equipment,” he       recently, he was senior vice president and
manufacturing and service footprint securely      said. “That’s what we’re focused on in the       chief marketing officer at CSI Compressco
in place to support the growth,” he said.         compression business. We want to tell you        G.P. Prior to the acquisition of Compressor
“We’re not new to the U.S., we’re just new to     ‘don’t worry about the box, worry about how      Systems Inc., Foster served as president
the compression fleet service business.”          fast that meter is spinning.’ We’re going        and board director for Compressco
    If a client’s needs change, Galileo           to arrange to have the equipment on site,        Partners LP.                                 CT2
Compression does not have to spend a huge         installed, started and maintained.”
sum to reconfigure a given unit. “We can do           Galileo Compression’s ability to
it very, very cost effectively with our modular   manufacture its own units give it a
                                                  competitive advantage, he said. Galileo does
                                                  not buy a frame from brand X, an engine
                                                  from brand Y, a cooler from Z, a panel from
                                                  someone else and then assemble all the
                                                  parts together in a fabrication yard. It makes

                                                                                                                              Galileo’s 600
                                                                                                                              horsepower, four-
                                                                                                                              stage Cryobox
                                                                                                                              compressor under
                                                                                                                              construction in
                                                                                                                              Middlesex, New
                                                                                                                              Jersey.

                                                                                                                   JUNE 2021 | COMPRESSORTECH2 | 47
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