Agreement to Purchase Biomethane from BP Energy,
The Resultant LNG to Be Sold with No Price Premium
Applied LNG said Wednesday that it will obtain landfill-derived biomethane from BP Energy and use it as a feedstock for liquefied natural gas production at its facility in Topock, Ariz. updated February 24
“We are committed to providing affordable, cleaner and domestically produced LNG as an alternative to oil-based products such as diesel, gasoline or propane,” Applied president and CEO Cem Hacioglu said in a release. “Using biogas as the feedstock makes LNG an even more compelling choice.”
“The Same Price’
Cleanup of the biogas will take place at the landfill site – said by one source to be in Texas – and the resultant biomethane will be conveyed to Topock via pipeline. “BioLNG,” Applied says, “is available for Applied LNG’s customers at the same price as LNG derived from conventional natural gas.”
Applied recently reported a $22.5 million financing arrangement for its new LNG plant in Midlothian, Texas (F&F, February 3), and said last week that construction had begun.
Waste Company Contract Extension
Applied LNG has also announced a multi-year renewal of its supply agreement “with its largest customer in the refuse hauling sector.”
“Under the renewal agreement,” Applied says, it “will supply LNG and provide comprehensive logistics and delivery services to all of this customer’s LNG locations in California. The agreement, which extends through 2020, marks the continuation of a long-term fuel relationship between the parties that started more than ten years ago.”
The customer, according to industry sources, is Waste Management.
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Source: Applied LNG with Fleets & Fuels follow-up