USA: NJNG to Build Three Public CNG Fueling Stations

New Jersey Natural Gas (NJNG) announced that it has entered into agreements with three host facilities, and will spend between $6 million and $8 million to build the first public compressed natural gas (CNG) fueling stations in Monmouth and Ocean counties.

Under the agreements, NJNG will install, own and maintain the CNG infrastructure, and each host facility will be required to initially use at least 20 percent of the fueling capacity and make the stations open to the public. This investment will help stimulate New Jersey’s market for CNG vehicles, while also providing economic and environmental benefits. NJNG will earn an immediate overall return of 7.1 percent, including a 10.3 percent return on equity, on its investment.

The host sites will be located at Waste Management, Inc. of Toms River, Ocean County, and the Middletown Department of Public Works in Monmouth County. A third host site will be located at a beverage distribution company in Monmouth County. The specifications and design of the CNG fueling stations will be finalized within the next 90 days and all three stations will incorporate fast-fill fueling technology for the public. NJNG expects construction of the stations to be completed by the end of 2013.

“We appreciate the opportunity to partner with these host facilities to bring new CNG fueling options to businesses and customers throughout the state,” said Laurence M. Downes, Chairman and CEO of New Jersey Natural Gas. “With these new stations, we are helping to create jobs, reduce emissions and encourage greater energy independence, and that benefits us all.”

The construction of these CNG fueling stations is a part of NJNG’s pilot program, approved by the New Jersey Board of Public Utilities in June 2012, to increase accessibility to CNG fueling stations in the state. Through the pilot program, NJNG can invest up to $10 million to build up to five CNG fueling stations at host facilities throughout its service territory. This investment enables the host sites to benefit from CNG without the upfront costs of building a station, while realizing an accelerated payback on the incremental costs of acquiring CNG vehicles.

Currently, there are only five CNG fueling stations open to the public in New Jersey. The new CNG fueling stations will significantly enhance that number and provide greater access to a cost effective and environmentally cleaner choice of fuel. Compared to diesel and other petroleum-based fuels, CNG can reduce fuel costs between 30 and 40 percent. Additionally, CNG can dramatically reduce amounts of carbon monoxide, nitrous oxides and other greenhouse gas emissions that can be harmful to the environment. According to the American Gas Association, natural gas-powered vehicles produce up to 30 percent fewer greenhouse gas emissions than diesel.

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LNG World News Staff, April 25, 2013