STWA, developer of applied solutions for fuel and delivery systems for the oil pipeline and diesel engine markets, today announced it has signed a letter of intent with LG Partners LLC, in which LG Partners will integrate STWA’s Applied Oil Technology™ (AOT™) oil pipeline efficiency technology into the design and construction of a proposed new project.
LG Partners is currently planning for the development of a non-domestic, multi-national $2.5 billion, 900-mile pipeline for the transport of medium and heavy crude oil to markets currently experiencing a lack of diverse pipeline suppliers.
This pipeline is designed with a transport capacity of 30 million to 60 million tons of crude oil per year, or approximately 600,000 to 1.2 million barrels per day. LG Partner’s development team said it believes AOT™ has significant potential value to the project’s efficiency.
“It is expected that the AOT™ technology will be central to the future efficient operation of our pipeline. The first test showed improved flow efficiency above 13%, as stated by the United States Department of Energy,” Michael B. Leader, LG Partners’ managing partner and CEO, stated in the press release. “We believe that positive efficiency gains of this number or higher have the potential to translate into substantial savings to our pipeline. Power consumption is the single greatest consumable cost to any pipeline operator. Over our projected 900-mile length, such savings promise to represent millions of dollars per year in reduced operating costs. We are excited to have the opportunity to work with such cutting-edge technology such as STWA’s AOT™.”
Cecil Bond Kyte, STWA’s chairman and CEO, also noted the anticipated benefits of the ATO™ technology for the pipeline.
“We and LG Partners believe that their proposed pipeline under development can potentially benefit greatly from the incorporation of our AOT™ technology. By reducing the viscosity of their crude oil, AOT™’s main feature, it would be possible to reduce the transport costs per ton, per mile for their daily operations,” Kyte stated. “As more and more countries seek to diversify their energy supply chain systems, proposed pipelines such as LG Partners’ will surely be moving to the forefront over the next decade. We believe that the adoption of our AOT™ technology may hold the potential to make some of these projects more viable through direct cost per mile reductions generated by viscosity reduction. By making these operations stronger financially, more doors can be unlocked. We welcome LG Partners as an early adopter interested in the implementation of our technology, and look forward to a bright future together.”
LG Partners said it plans on installing the AOT™ technology along the entire length of the pipeline once it obtains governmental approvals and permits, as well as the necessary financing to commence and complete construction of the pipeline.
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