Clean Energy to Acquire the LNG Supply and Distribution Operations of ALT for $30 Million
SEAL BEACH, Calif.--Feb. 1, 20048, 2004--Clean Energy, North America's leader in clean transportation, has agreed to acquire the LNG supply and distribution operations of Applied LNG Technologies USA, LLC (ALT) and certain of its affiliates for approximately $30 million in cash and notes. The agreement includes natural gas supply contracts, customer distribution contracts and other assets. The acquisition is expected to be completed in March 2004."This acquisition expands Clean Energy's LNG markets and supply in the western United States," said Andrew J. Littlefair, Clean Energy president and CEO. "We believe that LNG has significant potential to displace diesel fuel for large transportation and industrial users, benefiting air quality and the environment."
With its high energy value, onboard storage efficiency and minimal pollutants, LNG is a clear alternative for fueling heavy-duty vehicles, such as transit buses and refuse trucks, and for industrial users remote from natural gas pipelines.
ALT will remain in the LNG production business pursuing alternative and renewable energy projects now underway.
"Our goals are to further develop natural gas fuel sources and to advance fuel technologies, thus creating a viable, more efficient LNG industry that saves money for customers, produces clean fuel for the future, and increases the fuel flexibility of the United States," said Ken Kelley, ALT CEO.
New LNG customers of Clean Energy include over 40 supply contracts with transportation fleets and industrial users in the Southwest. Significant assets acquired include the LNG production plant, storage and loading facilities in Willis, Texas, and the storage and loading facilities at the LNG production plant in Topock, Arizona. The two plants have a combined capacity to produce 65 million gallons of LNG per year, strengthening Clean Energy's supply position. Also with this acquisition, Clean Energy will own or have under contract a fleet of 63 LNG tankers for distribution to customers.
Clean Energy is the largest provider of vehicular natural gas (CNG and LNG) in North America with a broad customer base in the refuse, transit, shuttle, taxi, police, intrastate and interstate trucking, airport and municipal fleet markets -- with tens of thousands of vehicles fueling at more than 165 locations in the United States and Canada. The company partners with Ford Motor Company to help expand its market share of natural gas vehicles.
Clean Energy is a private company whose major shareholders include Boone Pickens, Terasen Inc. (formerly BC Gas Inc., TSE:TER.TO), Westport Innovations Inc. and Perseus 2000 LLC. Information at: www.cleanenergyfuels.com