USAC, Callon install Dual Drive compressors

USA Compression Partners (NYSE: USAC) and Callon Petroleum Company (NYSE: CPE) have started operations of multiple dual drive compressors at Callon’s locations in the Eagle Ford shale.

The compressors, from Dual Drive Technologies, offer customers the ability to contract for compression services powered by either natural gas or electricity, giving operators the ability to significantly decrease greenhouse gas emissions, the companies announced.

“We are excited to partner with Callon Petroleum as they contract with USA Compression for compression services using dual drive compressors. Dual drive is a proven solution for customers and is unique for the industry,” said Eric D. Long, USA Compression’s president and CEO. “With the growing focus on emissions reduction throughout the industry, this is an exciting time for USA Compression as we continue to invest in reconfiguring existing units in our fleet for dual drive capability.

Long said the decision to retrofit some of its large horsepower units “is a logical, practical and proven solution which has the potential to drive GHG mitigation.”

“We are pleased to expand our commercial relationship with USA Compression by contracting for compression services utilizing this proven, innovative technology,” said Joe Gatto, president and CEO of Callon Petroleum. “The addition of the Dual Drive Technology in our operations will help us advance our sustainability initiatives, especially in reducing CO2 emissions as we expand the field electrification and other system upgrades.”

The compressors will enable Callon to reduce its fuel usage and lower GHG emissions, he said.

The concept of a dual drive compression system is to combine a natural gas-driven engine and an electric-driven motor to quickly and reliably switch from natural gas to electricity depending on operating constraints to compress natural gas. The field proven dual drive compression system allows companies to decrease GHG emissions and permit their sites for electrical compression, while still having the flexibility and redundancy to switch to natural gas when extreme temperatures - both summer and winter - put a strain on the power grid and utilities charge steep demand fees during resulting power outages, the companies announced.

The dual drive compressors give customers lower operating expenses, increased reliability, improved runtime, substantially lower emissions of CO2 and methane, the mitigation of interconnect delays and optimized fuel costs, the companies said.

Dual Drive Technologies, a division of Energy Transfer, received the 2012 Environmental Protection Agency’s (EPA) award for Best Available Control Technology (BACT) for emission reductions in the gas compression industry. In 2009, Dual Drive received the Innovative Technologies Award from the Texas Commission on Environmental Quality.