USA, California
10-Year Agreement to Help Supply Growing Transportation Fuel Demand in AZ and CA
Clean Energy Fuels Corp. has entered into an LNG sales agreement with Spectrum Energy Services, LLC (SES), an Alaska limited liability company, to purchase, on a take-or-pay basis over a term of 10 years, 45,000 gallons per day of liquefied natural gas (LNG) from a plant to be constructed by SES in Ehrenberg Arizona, which is near the California border. The plant is anticipated to be in full production in the summer of 2009.
The LNG from the plant will be used to help support Clean Energy’s supply agreements with customers in Arizona and California.
"Demand for natural gas for transportation is growing steadily, particularly in the Southwest, for the transit, refuse and emerging ports markets," said Andrew J. Littlefair, Clean Energy president and CEO. "This new supply agreement will supplement our resources needed to fuel the growth."
"The Ports of Los Angeles and Long Beach alone have developed a plan that envisions the addition of 5,300 heavy-duty LNG trucks for goods movement at the ports within five years," noted Littlefair. "Clean Energy has committed to be a major supplier to that initiative and already has LNG fueling stations under construction and design."
Clean Energy is building its own LNG production plant in the California desert that is planned to begin delivering up to 160,000 gallons of LNG per day in late 2008. The plant is designed to be able to increase production up to 240,000 gallons of LNG per day as demand grows further.
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