[NOTE: If you currently use diesel fuel or propane because natural gas is not available, contact us. We have hired and managed companies to build private pipelines for customers and negotiated with utilities to bring natural gas service to customers while negotiating each necessary delivery and commodity contract.]
Customers using natural gas and paying for transportation services on multiple pipelines seek to reduce or eliminate costs by eliminating a pipeline segment. Formerly, customers bypassed their local distribution company by building their own private pipeline. There is a better way.
The best practice is to negotiate with the local distribution company and fully assess the value of the bypass simultaneously and present both alternatives to the customer. The customer must understand the full cost of both alternatives in advance to make an informed decision.
Golden Energy Services, Inc. has hired and managed companies to build private pipelines for customers. Golden has also managed the gas nomination process from supplier through the transportation segment, and has managed the regulatory compliance obligations for the private pipeline after construction. All of these costs must be included in the final bypass pipeline cost.
Simultaneously, with private pipeline alternatives, Golden will negotiate with the local distribution company for discounted service. The local distribution company often has services that are not available from interstate transporters. Large customers sometimes approach local distribution customers with the paradigm that "because I am large, I deserve a discount". Not only will distribution companies not accept this argument, they are often prohibited from accepting this reasoning by state utility commission regulations. However, most states provide for local utilities to give discounts when the discount benefits all customer classes within the state.
Golden Energy Services, Inc. has successfully negotiated discounts of up to 80% off of the full tariff cost (although most discounts are in the 50% range), and has successfully contracted for firm gas transportation services at less than the interruptible rate.
Golden Energy Services, Inc. is fully prepared to build or negotiate and is fully aware that customers may have a preference for one solution over the other. Golden has presented both alternatives to the customers and executed the decision selected by the customer in multiple states. Golden has also hired and managed companies to build private pipelines for customers and then managed the pipeline or managed the sale of these pipelines back to the local utility in return for a substantial discount from the tariff rate. (Golden does not have a construction unit within its company, so Golden is "neutral" as to the solution and will provide the customer with what it wants and not, as many companies do, sell to you what we have.)