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Pentagon CNG for Powerplant Peaking

November 19, 2015  by Rich Piellisch

Marcellus Shale Gas as a Peak Shave Source,
Firm Is Developing 4,500-psi Tube Trailers Too

Florida-based Pentagon Energy is developing a virtual pipeline system for supplying compressed natural gas to powerplant customers who face wintertime high prices or curtailment of supply despite their position on established pipelines.

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Pentagon Energy enters into a CNG supply agreement for up to 90 BCF

Published: Oct 20, 2015 9:09 p.m. ET

HOUSTON and CORAL GABLES, Fla., Oct. 20, 2015 /PRNewswire/ — Pentagon Energy LLC, “Pentagon Energy,” announced today that it has entered into its first Compressed Natural Gas (“CNG”) contract with a leading global Natural Gas merchant. Under the terms of the transaction the buyer has agreed to purchase up to 90 BCF of CNG for a period of 5 years for distribution in the U.S. North East region. Pentagon Energy is planning to develop its first Compressed Natural Gas (CNG) Mother Station in the Marcellus shale region with the ability to compress up to 2.5 BCF per month.

“The buyer is one of the largest participants in the global gas markets and will be a strong foundation customer for our first CNG Mother Station in the US,” said Alberto Chiesara, Principal.  “Entering into this agreement is a significant milestone for our project and we look forward to working closely with this very important client to make this project a success.”

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Natgas venture by ex-Morgan Stanley traders seals first deal

Oct 20 A novel U.S. natural gas venture launched by former Morgan Stanley trading executives has secured its first major deal, allowing it to capitalize on seasonal supply shortages in pockets of the Northeast.

A large oil and gas company has agreed to buy as much as 90 billion cubic feet of compressed natural gas over five years, the new company, Pentagon Energy, said in a statement. The gas will be shipped by truck from a CNG station in the heart of the Marcellus shale gas field to power plants across the Northeast. Pentagon declined to name the buyer of the gas.

The project, involving the nation’s largest gas compressing station and specially designed trucks for hauling it up to hundreds of miles, is meant to capitalize on the abrupt supply shortages and price spikes that can arise in the region due to a lack of pipeline capacity to meet peak winter demand.

Pentagon plans to build several more so-called mother stations that will provide CNG to locations that “experience gas shortages or lack the infrastructure to receive gas.”

Coral Gables, Florida-based Pentagon was formed earlier this year from the acquisition of Wentworth, Morgan Stanley’s compressed natural gas business. The bank came under pressure from regulators to exit its physical commodities businesses, including Wentworth. Morgan Stanley also sold its physical oil business to Castleton Commodities International in May.

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Pentagon Energy LLC announced today that has entered into its first Compressed Natural Gas (“CNG”) contract with a leading global Natural Gas merchant.

HOUSTON / CORAL GABLES, October 19th 2015

Pentagon Energy LLC “Pentagon Energy” announced today that has entered into its first Compressed Natural Gas (“CNG”) contract with a leading global Natural Gas merchant. Under the terms of the transaction the buyer has agreed to purchase up to 90 BCF of CNG for a period of 5 years for distribution in the U.S. North East region.    Pentagon Energy is planning to develop its first Compressed Natural Gas (CNG) Mother Station in the Marcellus shale region with the ability to compress up to 2.5 BCF per month.

“The buyer is one of the largest participants in the global gas markets and will be a strong foundation customer for of first CNG Mother Station in the US” said Alberto Chiesara, Principal.  “Entering into this agreement is a significant milestone for our project and we look forward to work closely with this very important client to make this project a success”

Pentagon Energy is planning to use specially designed CNG Trailer trucks to transport the gas from the Mother Station to different locations in the U.S. North East market.   The development of this disruptive technology and the manufacturing was undertaken by its sister company, Composites Advanced Technologies “CAT CNG” in Houston Texas.

As currently contemplated, Pentagon Energy is planning to develop several Mother stations in the US to supply CNG to locations that experience gas shortages or lack the infrastructure to receive gas.   The Marcellus facility will be the largest of such stations in the U.S.

Pentagon Energy acquired Morgan Stanley CNG export business back in April 2015.  “Our aim is to rapidly expand the CNG Mother/Daughter station concept into other local and international markets” expressed Ryan Comerford, Principal of Pentagon Energy.

Pentagon Energy, LLC names Mr Joseph W Dickey as a Managing Director, and Global Head of Power Generation

We are very pleased to announce that Mr Joseph W Dickey is joining the Pentagon Energy team as a Managing Director, and Global Head of Power Generation. He brings great experience and expertise to our organization,
Mr. Dickey held several positions in the power generation industry as Vice President of Power Resources of Florida Power & Light Company and Vice President of Nuclear Operation in Florida, Chief Operating Officer and Executive Vice President of Tennessee Valley Authority in Knoxville, Tennessee. Mr Dickey has a degree in M.S Civil Engineering and a B.S Chemical Engineering from Massachusetts Institute of Technology.

Morgan Stanley to sell natural gas business scrutinized by Fed

The corporate logo of financial firm Morgan Stanley is pictured on the company's world headquarters in the Manhattan borough of New York City, REUTERS/Mike Segar

The corporate logo of financial firm Morgan Stanley is pictured on the company’s world headquarters in the Manhattan borough of New York City, REUTERS/Mike Segar

NEW YORK | BY LAUREN TARA LACAPRA

Morgan Stanley has agreed to sell a compressed natural gas business that came under regulatory scrutiny shortly after its launch last year, according to a document obtained by Reuters and three people familiar with the matter.

The bank will transfer the gas business, Wentworth, to a newly formed company called Pentagon Energy LLC. Two Morgan Stanley managers who were involved with Wentworth, Alberto Chiesara and Ryan Comerford, are leaving to join the new company as principals, according to those sources.

Simon Greenshields, who had been co-head of Morgan Stanley’s commodities business until January and was earlier said to be seeking to leave the bank through a Wentworth sale, is not joining Pentagon Energy.

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