Clean Energy Signs Deal to Increase LNG Resources in Southwest
SEAL BEACH, Calif., Oct 25, 2007 (BUSINESS WIRE) -- Clean Energy Fuels Corp. (Nasdaq:CLNE) 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.
About Clean Energy
Clean Energy is based in Seal Beach, Calif., and is the leading provider of natural gas for transportation in North America. It has a broad customer base in the refuse, transit, shuttle, taxi, intrastate and interstate trucking, airport and municipal fleet markets, fueling more than 14,000 vehicles daily at strategic locations across the United States and Canada. Information at: www.cleanenergyfuels.com.
Forward-Looking Statement
This press 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. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements, including the ultimate timing and production capacity of the new plant and the demand for LNG in the Southwestern United States, and other factors more fully described in the company's recent Form 10-Q and Initial Public Offering Prospectus filings with the Securities and Exchange Commission. 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 Bruce Russell, 310-559-4955, ext. 101 brussell@cleanenergyfuels.com or Investors John Mills/Ina McGuinness, 310-954-1100
Copyright Business Wire 2007
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