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Clean Energy Forms Joint Venture with Energy Gas del Peru to Bring Large-Scale

Tuesday, 07 August 2007

USA & Peru

Natural Gas Fueling for Peruvian Transit and Taxi Vehicles
New Peru Operation First Outside North America for Clean Energy

Clean Energy Fuels Corp’s subsidiary Clean Energy, and Energy Gas del Peru have partnered to form a new business entity, Clean Energy del Peru, which will develop and operate compressed natural gas (CNG) fueling stations to support the rapidly expanding CNG vehicle population in Peru.

The new company is initiating construction of its first fueling station, strategically located midway between downtown Lima, Peru's capital city, and the Lima International Airport. The station, which is expected to be operational by October 2007, will feature 13 dual hose fast-fill CNG fuel dispensers and will have the capability to add four additional dual hose fast-fill transit dispensers. Today in Lima, there are more than 11,000 CNG taxis (with more converted each day) facing long lines due to inadequate fueling facilities and there is virtually no capability to serve larger transit buses that run on natural gas.

The Peruvian Government favors natural gas as an alternative fuel and actively supports the transition with a program of incentives to promote the use of clean-burning natural gas in its transportation sector.  The plan targets the conversion of more than 130,000 public transit buses and taxis operating in Peru, and will initially be focused on the more than 60,000 buses and taxis in Lima. Natural gas vehicles are among the cleanest running on the road, producing significantly less harmful emissions than gasoline.

The shift to natural gas in the transportation sector also supports the Peruvian Government's fuel diversity objectives for public transportation, and will help make optimal use of Peru's large domestic natural gas supply. The natural gas and condensates from Peruvian fields are equivalent to roughly 2.4 billion barrels of oil, approximately seven times the size of Peru's proven oil reserves.

"Clean Energy's joint venture with Energy Gas del Peru, a unit of a Peru-based energy services company, is the first strategic growth move for the company outside the U.S. and Canada," said Andrew J. Littlefair, Clean Energy's President and CEO, and also current Chairman of NGVAmerica.

"Stated public policy in Peru advocates the transition to natural gas fuel for transportation," he said. "Attractive government financing incentives are available for vehicle purchase, CNG conversions and station development. Plus, we expect that CNG can be provided to drivers at favorable prices as the Peruvian Government's Ministry of Energy has announced that the commodity cost of natural gas on a gasoline gallon equivalent basis for vehicular fuel will remain fixed through 2012. After that, price increases will be capped at a maximum of five percent."

Source: NGV Global