Universal Cryo Gas -  On-site Gas Producer / Supplier - Nitrogen, Oxygen and Argon Questions and Answers about UCG  on-site procuction of the atmospheric industrial gas products Nitrogen, Oxygen and Argon.

Questions and Answers
UCG On-site Supply of Nitrogen, Oxygen and Argon

UCG operates plants in Kentucky and North Carolina (KY and NC).

 

Universal Cryo Gas produces nitrogen and oxygen for industrial gas users under cost-effective, long-term, utility-like onsite gas supply contracts. 

UCG gas supply arrangements combine UIG equipment supply and installation with ongoing operations and maintenance by Universal Cryo Gas.

With on-site generation of nitrogen or oxygen, customers not only realize immediate cost savings versus alternative supply arrangements, but will see those savings increase over time.

   

Universal Cryo Gas supplies nitogen, oxygen and other industrial gas products to customers by pipeline from dedicated on-site plants.

 
How Can Switching to an On-site Nitrogen or Oxygen Gas Supply Save Money?
 
When you purchase bulk liquid oxygen or nitrogen products, you pay the costs associated with separating air and producing purified products plus many other costs which are avoided with an onsite gas supplyWhile you do not see these additional costs as line items in your invoices, they are, nevertheless, real. 

Someone (ultimately, you) must pay for:

  • The cost of the energy required to liquefy the gas. It takes more than twice as much energy to make liquid oxygen or nitrogen than it takes to make and deliver these products as gases from an on-site gas plant.

  • Amortization of the supplier's cost for the equipment which is needed to liquefy the bulk merchant liquid products, and store them in large tanks until they are loaded into a trailer for delivery to you. 

  • A portion of the costs required to purchase and maintain the delivery trailer plus costs associated with providing the highway tractor, driver and fuel; as well as the product losses which occur when liquid is transferred into the trailer

  • The portion of your previously-purchased product which is vented from the tank at your site when it is re-filled, and in some cases, the residual liquid which remains in the trailer after your tank has been filled.

When you consider all the costs, inefficiencies and losses that are avoided when you arrange to have the products you need made on site as gases for in-plant pipeline delivery to usage points, it is not hard to see why on-site production and pipeline distribution of nitrogen, oxygen and argon can result in significant savings compared to using vaporized liquid products.  

Switching from vaporized liquid to on-site gas generation does not eliminate the need for a liquid storage and vaporization system. Liquid vaporization may be used to supplement on-site gas production when demand suddenly increases, and during plant maintenance shutdowns.  However, with a gas production plant on your site, the amount of liquid consumed to back up or supplement on site gas production will be only a small fraction of the amount that would be consumed if vaporized liquid was being used to meet the entire demand for nitrogen or oxygen.

 
When Will On-site-produced Gas be the Most Attractive Supply Option?
 

The higher your average hourly demand, and the more constant your demand level, the more likely it is that on onsite gas supply can save you a significant amount of money. 

Here are some Guidelines for determining how likely it is that you can benefit from switching to, or starting out with, on-site gas production: 

If you use more than two truckloads of liquid nitrogen or oxygen a day:  (Which is equivalent to more than about 30 million SCF/ month or 40 tons per day.)  An onsite gas supply will typically offer very significant savings - usually, several hundred thousand dollars a year or tens of thousands of dollars a month.  If your site consumption is in this category, please contact us to discuss your situation. 

If you use more than one, but less than two truckloads of liquid oxygen or nitrogen a day(Which is equivalent to more than about 20 million SCF/ month or 25 tons per day.)  An onsite gas supply is likely to be an attractive alternative to an all-liquid supply. UCG will be pleased to help you determine if an onsite gas supply system would be a cost effective alternative for all or part of your demand.  

Are you confused about weight and volume measurement units?
 
Do you want to reconcile monthly usage with hourly consumption rates?

Our easy-to-use usage rate conversion tool or other tools in our online Converter Toolbox can quickly convert your available consumption rate data into equivalent hourly, daily, monthly and yearly usage measures. 

Those who prefer printable weight and volume conversion tables should visit our collection of tables for oxygen, nitrogen, argon and carbon dioxide.

 

A handy rule of thumb for quick estimating, is that, in North America, a full load for most liquid nitrogen and liquid oxygen delivery trailers is about 20 tons of product.  This is equivalent to about 530,000 scf of gaseous oxygen or 610,000 scf of gaseous nitrogen..

 
How Much Will I Save if I Switch to an Onsite Nitrogen or Oxygen Gas Supply?
 

Savings are generally at least 20% (compared to liquid) and can be more than 50%.  Savings are usually measured in hundreds of thousands of dollars a year.

No one can tell you exactly how much you might save until they fully understand your needs, have defined the system required to meet those needs, and can compare the before and after costs on a comparable basis. However, UCG can provide a preliminary estimate for the cost of onsite product once we know the type of product you need (including required purity and delivery pressure), your estimated average usage rate, and an estimated cost for power at your site.

Development of a definitive onsite gas supply proposal requires detailed information about your specific situation, including site conditions, the length of the supply period that you need or want, applicable electric power cost or rate schedules, and details of your anticipated usage pattern, including flow rate variations that occur a daily basis and longer-term. 

In general, your savings will be higher the greater your average usage rate, the less variation in demand that you have each day and over more extended periods of time, the longer the agreed supply period, the lower the cost of electric power at your site, and the greater the cost for delivered liquid product.

Keep in mind that only a portion of your onsite gas costs will escalate over time - which means that there will be significant growth in your savings (versus the cost of liquid products) over the life of the contract.

 

Visit our "Change for the Better" Page for Illustrations of Attainable Savings

 
What Type of Plant Will Be Used to Supply My Needs?
 
UCG and UIG will assess your expected usage pattern (average rate, peak rates, hourly and seasonal fluctuations, plus anticipated changes in usage over the next several years) and your product purity requirements.  

Depending upon projected average usage rates, purity required and demand patterns, nitrogen users will typically be served using conventional cryogenic nitrogen generators or non-cryogenic PSA plants.  In some cases, a LIN-assist plant will be recommended.  Oxygen users will usually be offered a supply based on low purity or high purity cryogenic oxygen generators or a non-cryogenic VPSA plant.

Whatever type of plant is chosen, the proposed on-site supply system will be a cost effective solution to the agreed requirements, and system performance will be guaranteed.  In many cases the plant will be selected to allow for cost effective production rate increases to accommodate anticipated growth in demand.  

 
What About Backup Liquid?
 
Backup liquid vaporization systems are installed to avoid disruptions of supply due to power failures or maintenance requirements.  UCG will provide backup liquid at competitive prices.

UCG is unique in its approach to the supply of backup liquid and the associated storage and vaporization systems:

  • UCG does not make purchase of bulk backup liquid from UCG a requirement for supplying onsite gas to the host plant. 

  • UCG typically includes the cost of the required liquid storage and vaporization system in the cost of the plant instead of billing for tank rental separately.

  • Customers are free to shop for liquid from others - and there are no hidden barriers to changing suppliers. 

  • UCG-supplied tanks will be available for use throughout the term of the onsite supply - and any liquid supplier can fill them without incurring tank change-out fees or additional rental fees. 

  • When UCG operates a "piggyback" gas and liquid plant, the onsite gas customer benefits from having large quantities of merchant liquid stored on site, which is instantly available with no transportation costs or delays.  

Customers can be sure of highly competitive prices for their backup bulk liquid needs throughout the term of UCG onsite supply contract.

 
Who Handles Operation and Maintenance?
 
It is Universal Cryo Gas' responsibility to operate and maintain the facility. 

UCG equips its plants with computer control systems that provide highly automated and sophisticated control of the plant.  Alarms are indicated locally, and transmitted to local operations personnel and to UCG home office operations support personnel.  Shutdowns are automatic when out-of-range conditions exceed pre-set limits. (Backup systems will activate automatically to ensure uninterrupted delivery of on-spec product.)

UCG plant operators verify proper operation, optimize plant settings to reflect changes in demand patterns, weather, and other factors, and perform routine maintenance.  Plant operation is also monitored remotely by Home Office and Regional personnel.  Periodic maintenance is scheduled and confirmed on a regular basis. 

The bottom line for you, the customer, is that UCG will guarantee plant availability, do everything possible to ensure that guarantees are met, and provide protection against extra costs should UCG fail to meet its product availability guarantees.

 
Are There Other Options That May Increase My Savings or Increase Supply Reliability?
 

If there is sufficient local demand for merchant liquid products in the area (liquid oxygen and/ or liquid nitrogen)  UIG / UCG may suggest installing a "piggyback" gas and liquid production plant as an option. 

Adding liquid production at an onsite gas production site requires additional equipment (and additional liquid storage).  These additions permit higher production rates and support distribution of large quantities of liquid products. When UCG is able to justify installation of a plant that will serve multiple customers, UCG is able to offer lower cost product to the original on-site gas customer (the host plant). The host plant also benefits from enhanced supply reliability due to the large amount of liquid product which will be stored on the site. 

 
For more information on factors affecting selection of an optimal combination of production plant size and technology and related supply system components, see Production/ Supply System Optimization.
 
When Should I Begin to Investigate Supply Options?
 

If you currently purchase onsite-produced gas or liquid products, and wish to investigate producer/ supplier alternatives, you should begin to seriously examine potential options well in advance of the end of your current supply period.  For most users, this means starting at least two, and preferably three years prior to the end of their current contractual supply period.  Please visit our page of tips on Changing Your Industrial Gas Supplier for additional information on managing the process.

 
How Can I Learn More?
 
UIG and UCG want to earn and keep your business by providing responsive, customer-friendly service, and by offering production systems and commercial arrangements that cost-effectively and reliably meet your current and future needs. 

We will be pleased to review your requirements and preferences; and work with you to define the best solution for your specific situation. We will provide you with the best pricing and contract terms, including performance guarantees; and an ongoing relationship that fully meets your needs and expectations. 

 

Call us, fax us, or click on the link below to tell us about your requirements.

 
Links to More Information About Universal Cryo Gas, LLC
 
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Onsite Gas Supply
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Universal Industrial Gases, Inc.
Universal Cryo Gas, LLC
2200 Northwood Ave. Suite 3
Easton, Pennsylvania 18045-2239 USA

Phone (610) 559-7967 Fax (610) 515-0945

All material contained herein Copyright 2003 / 2008 UIG. 

The UCG Website is a subdomain of uigi.com