First CNG Outlet in Native State with Hutch’s in Watonga
As Sparq Secures Backing by Dericks Leasing & Financial
Oklahoma City-based Sparq Natural Gas reports its first deal for a CNG fueling outlet in its native state: Sparq is to open an ANGI/Gilbarco-equipped station at an existing Hutch’s convenience store location in Watonga, Okla. late this year. updated June 30
Sparq has meanwhile secured new backing from Tulsa-based Dericks Leasing & Financial, which it says supports mid-size and start-up companies primarily in the energy space, including more than $30 million in fueling equipment at convenience stores.
“We saw that there was dearth of capital looking to support and finance and invest in CNG opportunities,” says Dericks Leasing principal Richard Dericks, Jr. His firm backed its first CNG station in Oklahoma in late 2013 and is negotiating now for additional facilities outside the state. The company is also looking to finance vehicle conversions for the first time, and is working on an LNG project, Dericks told F&F.
Sparq’s new compressed natural gas fueling installation augmenting a Conoco gasoline-diesel outlet at Watonga will complement existing Hutch’s CNG stations in Woodward, Elk City (two), and Sayre, Okla., Sparq says, as well as a station in Liberal, Kans.
Sparq Strategy: ‘Retailers with Scale’
“Sparq continues executing on our business plan of partnering with retailers with scale, who allow us to tap into the heavy-duty trucking market, and successfully serve their CNG fueling needs,” managing partner and CEO Norman Herrera said in the Watonga announcement.
At Watonga, “Sparq found a needed heavy-duty infrastructure gap and met a market bottleneck and need,” Herrera told F&F. The facility northwest of Oklahoma City is positioned to support CNG trucks including a growing fleet of Hutch’s vehicles, he says, as well as operators working the Cana-Woodford Shale.
The ANGI station will feature twin 200-horsepower compressors (Duplex NG-300 Ariel JGQ units) backing four fueling positions with Gilbarco’s new Encore CNG dispensers.
More CNG for Hutch’s Own Fleet
It will be “ a demonstrable example,” Sparq says, of using PLC/programmable logic control for optimal pressure and flow across variable inlet pressures. The station will also have “a custom valve panel for superior fueling performance,” and CP Industries storage.
“As we continue offering CNG to our valuable customers, Hutch’s will make it easier for our trusted vendors and key accounts to find CNG in an accessible and convenient location,” Hutchinson Oil president David Hutchinson says in the Sparq release.
“We will also continue our approach of vertically integrating CNG across our own fuel delivery Class 8 trucks, service and maintenance pick-ups, and other food service options,” Hutchinson said. Hutch’s currently operates three CNG-fueled Class 8 trucks.
With Watonga, Five States for Sparq
Having traveled over 550,000 miles with our own CNG fleet vehicles, this fuel has been successfully implemented across our organization, and we are convinced in the reliability, cost savings, and environmental benefits of natural gas.”
“Convenient and accessible fueling in Blaine County, and other gaps across the state, will accelerate our fleet conversion goals and CNG utilization,” Oklahoma Office of Management & Enterprise Services fleet manager Terry Zuniga says in the Sparq Watonga announcement. The state has more than 900 CNG vehicle, he said, with more expected.
Sparq notes that “in 18 short months,” it is actively helping establishing CNG infrastructure in Texas (Houston), Louisiana (Baton Rouge), Kansas (Garden City), and Colorado (Pueblo, Trinidad, Eaton, and Durango).
The stations in Baton Rouge and Pueblo have just been commissioned.
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Source: Sparq Natural Gas with Fleets & Fuels follow-up