M.U.D. to sell liquefied natural gas to Clean Energy Fuels Corp.
May 2, 2012, Omaha, Neb.—Metropolitan Utilities District board of directors today approved a plan to sell liquefied natural gas (LNG) to Clean Energy Fuels Corp., the largest provider of natural gas fuel for transportation in North America and a global leader in the expanding natural gas vehicle market.
As part of the 15-year contract, Clean Energy will invest up to $2 million to build a truck loading facility -- called a truck rack -- at the District’s LNG Plant, to open next year. Clean Energy will be the exclusive purchaser of LNG from this facility for transportation use within a 200-mile radius.
Nationally, the transportation industry is looking at alternative sources of fuel, and natural gas makes sense. It is clean, economical, abundant and American. Clean Energy plans to add LNG pumps at 150 truck stops, primarily along Interstates, in the next few years. Semi tractor-trailers are modified to use LNG instead of diesel fuel.
“The District is excited to partner with Clean Energy to leverage our LNG Plant for use in the natural gas transportation market,” said M.U.D. President Doug Clark. “As we build on the success of our compressed natural gas stations, the District will be well positioned to capitalize on the new LNG market and bring more economic growth to the Omaha metro area."
He added, “As the LNG market establishes itself, we could see annual sales in the $1 million range. This additional year-round natural gas use will help maintain lower and stable rates for all of our customer-owners.”
The District began operation of the LNG Plant, at 117th and Fort Sts., in 1975 to help the utility meet peak demands on its natural gas distribution system, even on the coldest days.
Design and construction of the new truck loading facility will occur in 2012 and early 2013, with plans to be open for business by summer 2013, Clark said.
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