USA: Pivotal LNG Inks Deal with Encana

Pivotal LNG, a subsidiary of AGL Resources Inc., has signed an agreement with Encana Natural Gas Inc., a subsidiary of Encana Corporation, to supply liquefied natural gas (LNG) that Encana plans to offer to service providers operating fleet trucks in the Haynesville area of Louisiana.

Encana will dispense the LNG through mobile and permanent public fueling stations. 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.

AGL Resources is dedicated to helping “jump start” and expand the use of natural gas for transportation.

“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’ Chairman, President and Chief Executive Officer. “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 gallons of liquefied natural gas per day 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, Encana Corporation & Senior Vice-President, USA Division. “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.”

“At Pivotal LNG, we see the value of using LNG as a cleaner, domestic substitute for diesel fuel,” said David Schultz, vice president, Pivotal LNG. “Pivotal LNG has already positioned itself as a player in the wholesale LNG market. We are a part of a strategy by our parent company, AGL Resources, to build a foundation to support new and creative ways to bring the many benefits of natural gas to the forefront of our nation’s energy landscape.”

Pivotal LNG recently announced it has agreed to purchase an approximately 60,000 gallon-per-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.

AGL Resources has been in the business of operating utility LNG facilities for more than 30 years.

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Source: Encana, August 23, 2011;