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Citizens Petitions IURC to Create Alternative Fuel Source Business

12/6/2012
 
INDIANAPOLIS- Citizens Energy Group announced today a filing with the Indiana Utility Regulatory Commission (IURC) seeking the creation of a multi-state transportation and industrial fueling business utilizing Liquefied Natural Gas (LNG). LNG is created through the process of cooling natural gas to minus 260 degrees Fahrenheit.

The new Citizens Energy Group subsidiary will market and sell LNG as a competitive alternative to diesel fuel for use in heavy-duty vehicles or off road applications such as drilling rigs, rail and marine vessels. Based on market research, within the next 10 years Citizens Energy Group expects LNG demand in the Midwest to exceed 500,000 gallons/day.

“An environmentally friendly alternative fuel, LNG burns cleaner and costs less than other fuel sources,” said Carey Lykins, President and CEO of Citizens Energy Group. “With this step, we are confident that Citizens Energy Group and Indiana will become the Midwest’s leading alternative fuel exporter.”


Benefits of LNG:
 
  • Producing energy, like LNG, in the U.S. helps stimulate the economy and reduces dependency on foreign oil.
  • LNG saves companies money as it costs approximately 40% less than diesel fuel per gallon.
  • The LNG business will contribute to Indiana job growth by helping expand Indiana’s many businesses in the natural gas vehicle and transportation value chain like Autocar, Cummins, Honda, and others. 
  • Indiana and local governments will benefit from the taxes raised on facility investments and sales taxes.
 
"The adoption of natural gas as a transportation fuel will be a significant boost to the U.S. economy and provide environmental benefits for future generations," said Patrick DeVille, Vice President of LNG for Clean Energy. "In order to realize this potential, there must be a reliable supply of LNG for the country's long-haul truck fleets. Deregulating the state's LNG market is a great opportunity for Indiana to enhance its position as a transportation hub."

“Rarely has Indiana, as well as our entire country, had the opportunity to create economic growth, provide a cleaner environment and secure our nation’s energy security in one strategic initiative—LNG,” said Merrit Norton, CEO of BLU LNG. “LNG is clean, abundant and a low-cost alternative to the foreign oil that currently fuels our nation’s trucking fleet.”

In addition to seeking regulatory approvals, Citizens Energy Group is also undergoing engineering studies to determine the best means to further expand its LNG production capabilities. Once Citizens has approval from the IURC, it will immediately begin selling LNG to customers throughout the Midwest.

About Citizens Energy Group

Citizens Energy Group provides safe and reliable utility services to about 800,000 people in the Indianapolis area. Citizens operates its utilities only for the benefit of customers and the community. Additional information is available online at Facebook - Twitter - LinkedIn - YouTube

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