AGL Resources Inc. (AGL), an Atlanta-based energy services company, and natural gas provider El Paso Corporation (EPC) have recently signed a joint-venture agreement to distribute liquefied natural gas (LNG) across the southeastern United States to the heavy-duty transportation market, which includes heavy-duty trucks, buses, and waste haulers, and to peak-shaving facilities. The new 50/50 joint-venture, Southeast LNG Distribution Company (http://www.southeastlng.com/), plans to own and operate a fleet of LNG-fueled tankers and distribution facilities to support the use of LNG as a fuel source for this emerging market segment.
“This partnership with El Paso will play an important role in expanding the availability of clean-burning, low-cost natural gas as an alternative to diesel fuel for heavy-duty fleet use – including long-haul trucking,” said John W. Somerhalder II, chairman, president and chief executive officer of AGL Resources.
“AGL Resources and El Paso have a unique opportunity to develop this new transportation market by capitalizing on our combined LNG and natural gas infrastructure in the Southeast, our long-time relationship, and the expertise in both organizations,” said Jim Yardley, president of El Paso’s Pipeline Group.
Southeast LNG plans to provide distribution facilities and gas supply contracts to both the private and public sectors as the market develops.
President Bruce H. Hughes, head of the new company, said, “Approximately 25 percent of the nation’s tractor-trailer traffic occurs in the southeastern U.S. We plan to develop infrastructure to fuel and service this market segment with LNG, providing significant environmental and economic benefits.”
AGL Resources, an Atlanta-based energy services company, serves approximately 2.3 million customers in six states. The company also owns Houston-based Sequent Energy Management, an asset manager serving natural gas wholesale customers throughout North America. As an 85-percent owner in the SouthStar partnership, AGL Resources markets natural gas to consumers in Georgia under the Georgia Natural Gas brand. The company also owns and operates Jefferson Island Storage & Hub, a high-deliverability natural gas storage facility near the Henry Hub in Louisiana. For more information, visit http://www.aglresources.com/.
El Paso Corporation owns North America’s largest interstate natural gas pipeline system and one of North America’s largest independent natural gas producers.
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