$167 Million Deal for Equipment for 310 CNG Fueling Stations
Clean Energy Fuels reported a pact with China Gas Holdings to supply as many as 416 compressed natural gas compressors by its IMW Industries subsidiary for 310 CNG stations in China.
The three-year agreement has a potential value of approximately U.S. $167 million, Clean Energy (NASDAQ:CLNE) said.
In addition to the compressors, Chilliwack, B.C.-based IMW anticipates supplying a suite of products and services, including as many as 186 dryers, 527 dispensers, and 387,500 liters of buffer storage to China Gas’ joint venture distribution partners, Clean Energy said: “This is in addition to the 124 stations IMW has already equipped in China; all equipment is manufactured at IMW’s facility in Suzhou-Taicang, China.”
“In the coming years, China Gas and its partners plan to construct the equivalent of over half of all the public access CNG stations currently available in the United States,” Littlefair said – “significant for our companies and the future of cleaner transportation in China.”
Equivalent to Half of America’s CNG Infrastructure
“China has grasped the potential of natural gas as an alternative to gasoline and diesel fuel and is aggressively building the necessary infrastructure to realize this potential,” Clean Energy president and CEO Andrew Littlefair said in a release.
China Gas Holdings executive chairman, managing director and president Liu Ming Hui called IMW the “world leader in natural gas vehicle compression technologies and the ideal strategic partner for China Gas.”
Canadian Government Support
Clean Energy further reports that China Gas has secured financing for the transaction from Export Development Canada. An initial $5 million has been used for the purchase of 29 IMW compressors, anticipated to be delivered during the fourth quarter of 2013 for the first 19 stations.
“To date,” states the Clean Energy announcement, “China Gas owns a total of 194 natural gas projects, including exclusive piped gas development rights in 184 cities and regions, nine natural gas pipeline transmission projects, one natural gas exploration project, as well as the license to import and export LNG and other fuel products in China, and 44 LPG distribution projects.”
Jim Harger is chief commercial officer at Clean Energy Fuels.
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Source: Clean Energy Fuels with Fleets & Fuels follow-up