Clean Energy Awarded Two LNG Supply Contract Renewals in Phoenix
SEAL BEACH, Calif., Jul 10, 2008 (BUSINESS WIRE) -- Clean Energy Fuels Corp. (Nasdaq:CLNE) received a one-year LNG (liquefied natural gas) supply contract renewal to serve the City of Tempe (Tempe Transit) and the Regional Public Transit Authority (RPTA) through a contract with the City of Phoenix, effective July 1, 2008. Clean Energy had been supplying LNG fuel to these agencies previously under a long-term contract with the City of Phoenix.
The City of Phoenix recently issued an RFP for LNG supply for itself, Tempe and the RPTA, then awarded the contract to another supplier. The competing supplier bid to supply the LNG at a price difference of $0.02 per gallon less than Clean Energy's bid. Subsequently, Tempe and the RPTA decided to opt out of the combined award, and the City of Phoenix elected to award the portion of the contract that supplies Tempe and the RPTA, in favor of Clean Energy. The anticipated annual revenue from the portion of the contract awarded to Clean Energy is approximately $6.7 million.
"We are pleased to continue our supply relationship with Tempe and the RPTA where we have provided reliable, cost-efficient fueling services for five years, ensuring those agencies and their riders that their buses roll out daily to meet community transportation needs," said Andrew J. Littlefair, Clean Energy's President and CEO. "Reliable fuel supply is a critical factor for transit agencies and we have worked hard to be the leader in the field."
Clean Energy has the largest supply of LNG in the western United States, including sourcing contracts with six LNG plants. The Company also operates its own LNG plant near Houston, Texas. When Clean Energy's new California LNG Plant becomes operational in fall 2008, it will provide up to 160,000 gallons of LNG per day and have over 1.5 million gallons of LNG storage, providing a large buffer to cover any potential plant or other supply interruptions. The Company has also announced a long-term contract to purchase LNG from a new plant being built near the California-Arizona border.
Clean Energy (Nasdaq:CLNE) is the leading provider of natural gas (CNG and LNG) for transportation in North America. It has a broad customer base in the refuse, transit, ports, shuttle, taxi, trucking, airport and municipal fleet markets, fueling more than 14,000 vehicles daily at strategic locations across the United States and Canada. Clean Energy del Peru, Clean Energy's Peruvian joint venture, operates the world's largest natural gas vehicle fueling station in Lima, Peru. Information at: www.cleanenergyfuels.com.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks, uncertainties and assumptions, including statements made with respect to the timing of the Company's LNG plant startup in Southern California, the amount of LNG fuel produced at the plant and the future performance of the Company under supply contracts. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements. The forward-looking statements made herein speak only as of the date of this press release and the company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
SOURCE: Clean Energy Fuels Corp.
Clean Energy Fuels Corp. News Media Christine Thomas, 310-559-4955 x103 cthomas@cleanenergyfuels.com or Investors Ina McGuinness, 310-954-1100
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