AGL to supply Encana with LNG for Louisiana truck fueling stations
Pivotal LNG, a subsidiary of AGL Resources, has signed an agreement with Encana Corp. to supply liquefied natural gas (LNG) that Encana plans to offer to service providers operating fleet trucks near Haynesville, Louisiana.
Encana will dispense the LNG through mobile and permanent public fueling stations, it said.
Natural gas in a liquid form is easily transported and stored. It is an environmentally responsible fuel ideal for use in large fleet vehicles and heavy-duty engines, the companies said.
AGL Resources is dedicated to helping expand the use of natural gas as part of the transportation fuels mix, it said.
"AGL Resources has made commitments to serve the needs of an emerging market around the use of natural gas as a transportation fuel," said John W. Somerhalder II, AGL Resources' CEO. "This agreement follows those commitments, creating a progressive relationship with Encana that we believe will help to stimulate this new industry."
Under the terms of the agreement, Pivotal LNG will supply up to 100,000 gal/day of liquefied natural gas for an initial five-year period to Encana.
"This agreement provides Encana Natural Gas with a secure, long-term supply source of liquefied natural gas for its new LNG fueling stations," said Eric Marsh, executive vice president for Encana.
"Encana is committed to expanding the use of environmentally responsible natural gas, and this is an important step towards building an infrastructure that will enable companies servicing the energy industry to convert their large-freight vehicles,” he added.
Pivotal LNG recently announced an agreement to purchase an approximately 60,000 gal/day liquefied natural gas facility located in Trussville, Alabama, pending the fulfillment of certain closing conditions, including government approval.
The Trussville facility will be AGL Resources' first LNG facility dedicated solely to the merchant market and will play a role in supplying LNG to Encana, the company said.
AGL Resources has been in the business of operating utility LNG facilities for more than 30 years.
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