Capstone Turbine Corp., a manufacturer of microturbine energy systems, has received a sixteen-unit follow-on order for a C800, two C600s, and multiple C65 and C30 microturbines totaling in excess of 2.6 MW for a repeat oil and gas customer in the Mancos and Gallup shale plays, situated in the San Juan Basin of the United States.
Horizon Power Systems, Capstone’s distributor for the Eagle Ford, Permian, Barnett, Mancos, San Juan, and Wattenberg shale plays, placed the order, which is expected to be commissioned in three phases beginning in December 2016.
The dual mode microturbines will be installed at various locations within the San Juan basin to help boost production using a growing microgrid system. Power generated by the microturbines will drive artificial lifts and assist with the transfer of oil and water to various points of the production field.
The long term repeat oil and gas customer installed its first Capstone microturbine back in 2000 to establish a central power system for shale gas production in the San Juan Basin. After years of expanding its operations with additional microturbines, the customer decided to introduce Capstone’s larger microturbine systems to the field. The customer’s production operation continues to be powered entirely by Capstone microturbines.
“Despite the prolonged slump in the energy industry, oil and gas producers continue to look for ways to reduce their operational costs and meet the increasingly stringent flaring requirements, which is a long term catalyst for our business,” said Darren Jamison, President and CEO at Capstone. “This order is a positive sign as this is the largest oil and gas order we have received in nearly a year and is further significant in light of the drop in our oil and gas business to 8% of product revenue in this year’s second quarter compared to 26% of product revenue for the second quarter a year ago.”