Modern PVC Inc. is a vertically integrated, compressed natural gas marketing and distribution company, which has developed a business strategy that removes the risk of upstream exploration or midstream intensive capital investment as it is able to provide the benefits of wholesale and retail gas sales with high margin value added products in addition to the CNG product.
MPVC takes delivery of natural gas at the well head, and compresses it for sale. It secures upstream natural gas production by entering into purchase contracts with suppliers at a deep discount to the current spot price for natural gas. By removing the producer’s capital costs of pipeline and infrastructure, as well as transmission line usage fees, MPVC is able to pass these savings on to the producer.
The company aims at maximizing return on operations through capital efficiency. “We are developing a mobile gas compression fleet that handles both processing and delivery. As a result of our streamlined operations plan, MPVC does not have to build the capital intensive infrastructure to collect and process natural gas into CNG,” they said through a press release.
MPVC will earn high margin revenue through the sales of CNG to major wholesale buyers such as corporate trucking fleets, by providing onsite delivery. Additionally, it will provide services to the individual consumer wanting to refuel their natural gas vehicle and purchase high profit convenience and travel items from their CNG filling stations. Lastly, it will generate revenue from franchise fees earned from franchising their CNG technology, filling stations and trucking units.