Economics FAQs

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Pricing and Versatility

  • Are the tanks rented, leased, or purchased?

    Adopting the Kathairos solution requires no capital outlay thanks to its innovative monthly tank rental and refill model. It is a highly economical solution that requires zero upfront cost, ongoing operator involvement, replacement of existing systems, repair and maintenance, or onsite power.

  • What are the various costs associated with the Kathairos system?

    • System commissioning: This one-time fee covers the delivery of your liquid nitrogen units to your staging yard, and the initial cooldown and commissioning of the tanks. Commissioning time is one to two hours per site and completed in a single visit. Kathairos has the capacity to deliver the systems within six to eight weeks from time of order thanks to our manufacturing partnership with Chart Industries, continuous production line, and robust tank inventory at our many North American field offices and staging yards.
    • Mixed monthly system rental fee: The monthly rental cost of the Kathairos' liquid nitrogen storage tank and telemetry system is priced according to the size of system required. Our range of tanks service every size and configuration of well site, with a singular tank often powering enormous multi-well pads.
    • Variable monthly nitrogen fee: This all-in fee covers the service side of the Kathairos solution, including a dedicated field crew, nitrogen procurement, dispatch and delivery, plus 24/7 system monitoring, management and optimization.
    • Nitrogen rates: Deep, non-exclusive partnerships with leading industrial gas suppliers and our expansive North American service network enable us to deliver small-scale liquid nitrogen refills directly to our customer’s well sites that are unbeatable in price, certainty and reliability across every US and Canadian oil and gas producing basin.
    • Usage-based billing: Producers only pay for the emissions actually eliminated, given that nitrogen use increases and decreases proportionate to pneumatic actuation. Thanks to the gas equivalence ratio (GER) between nitrogen and methane and the closed nature of the Kathairos system, we know that every unit of nitrogen consumed equates to 1.2764 units of methane abated. And within hours of operating with us, our producer partners know it too.
  • Does the Kathairos system make sense for both big and small-sized well pads?

    Kathairos can cater to both large sites with numerous wells and smaller sites with fewer pneumatics, adapting the tank size and service accordingly.

  • Why is the Kathairos system so well-suited for smaller, single well or low-vent sites?

    Because of its low monthly operating cost, the Kathairos solution has proven highly effective at addressing the longstanding issue of venting at small legacy well sites, providing producers with a simple, effective and affordable way to meet incoming methane regulations and compliance timelines.

  • Is it also suitable for large, multi-well pads and greenfield sites?

    On both electrified and off-grid sites, Kathairos’ larger tanks prove to be an extremely economical, reliable solution for new unconventional facilities, where a single tank can power up to 50 wells and 500 devices, on the same 30-day refill cycle as a smaller unit.

  • How do the economics of the Kathairos system compare to alternative solutions?

    Kathairos' unique tank rental and nitrogen refill model allows for the lowest cost solution in the fight against remote well site methane emissions. The system is very competitively priced compared to alternative solutions over both the short and long-term, particularly when cost savings from conserved fuel gas, methane tax avoidance and carbon credit generation are considered, and the fact that there is no downtime, site disruption, delivery delays, maintenance, parts replacement, operator involvement or capital asset depreciation. When you further consider its reliability, scalability, simplicity, affordability and empirical data generation, the system comes out ahead.