Citizens Boosts Natural Gas EffortsPosted: Updated:
Citizens Energy Group has taken a major step toward increasing its natural gas business. Kinetrex Energy, a subsidiary providing liquefied natural gas, is now in operation. As first reported in our INdiana Connections e-newsletter, the utility says it is seeing increased demand from logistics companies dealing with rising diesel fuel prices. Kinetrex says it sold its first load of LNG this month and already has multiple customers under contract.
July 23, 2013
Indianapolis, Ind. -- As the price of diesel fuel and gasoline continue to rise, Kinetrex Energy, a subsidiary of Citizens Energy Group, is now open for business and on its way to becoming a leading Midwest provider of liquefied natural gas (LNG). LNG is a clear, colorless, non-toxic liquid that can be transported and stored more easily than natural gas because it takes up to 600 times less space.
On June 26, the Indiana Utility Regulatory Commission (IURC) ruled in favor of operating Kinetrex Energy as an unregulated business. Kinetrex Energy is beginning to provide clean burning liquefied natural gas for transportation and other markets that are struggling with the rising price of diesel fuel.
"Operating Kinetrex Energy as an unregulated business gives Citizens the ability to compete with other fuel providers in the US," said Carey Lykins, President and CEO of Citizens Energy Group. "Kinetrex Energy is helping to make Indiana a national leader in LNG production."
Kinetrex Energy sold its first load of LNG on July 5 and is now loading trucks in less than an hour. With increased demand, Kinetrex already has several customers under contract. These customers see LNG as a competitive alternative to diesel fuel for use in heavy-duty vehicles and off-highway applications.
Customers converting diesel engines to LNG see financial and environmental benefits. "We are seeing strong demand in the market place and have fully subscribed the LNG North plant beginning the first quarter 2014, and therefore are actively investing to expand production," said Aaron Johnson, President of Kinetrex Energy.
As many large corporations launch their sustainability initiatives, LNG is a perfect solution to "green" their supply chain. LNG burns cleaner and costs less than other fuel sources, and reduces greenhouse gases by more than 20 percent. It also costs about 35-45 percent less than diesel fuel. That combination makes LNG a natural fit for logistics companies. Based on market research, Kinetrex expects LNG demand in the Midwest to exceed 500,000 gallons/day by 2020. To
Source: Citizens Energy Group