ALLENTOWN, PA and SEAL BEACH, CA (March 25, 2013) – Lehigh Gas Partners LP (NYSE:LGP), a leading wholesale distributor of motor fuels, and Clean Energy Fuels Corp. (Nasdaq: CLNE), North America’s largest provider of natural gas for transportation, today announced an agreement to develop compressed natural gas (CNG) fueling stations at potentially 20 Lehigh Gas facilities throughout the United States.
The two companies will work together to identify Lehigh Gas sites on which to construct CNG fueling stations. The CNG stations will be accessible to the public for CNG refueling and conveniently located for commercial CNG fleets, including shuttles, taxis, small- to mid-size trucks and other natural gas vehicles (NGV). Clean Energy will be responsible for the construction and operation of the CNG fueling stations and the management, marketing and sales of CNG at Lehigh Gas sites.
“Lehigh Gas appreciates the leadership position Clean Energy has taken in the development of CNG and is pleased to partner with them to offer an alternative fuel option to help people get where they need to go,” Joseph Topper, chairman and CEO of Lehigh Gas Partners, said. “This agreement supports our alternate-fuel strategy of developing refueling sites both on our own and also with best-in-class providers like Clean Energy,” Topper added.
“Lehigh Gas has been early to recognize the significant environmental and lower-cost benefits of natural gas and is a great fit as Clean Energy’s partner in publicly accessible CNG stations,” said Greg Roche, Clean Energy’s vice president for national accounts. “The two companies have unique strengths that will bring convenience, cost-savings and a cleaner-burning fuel to the growing number of NGV drivers,” Roche added.
Priced up to $1.50 less per gasoline-gallon equivalent than diesel fuel (based on current market conditions), the use of natural-gas fuel reduces costs significantly for vehicle and fleet owners and lowers greenhouse-gas emissions up to 23 percent in medium- to heavy-duty vehicles, according to Clean Energy. Additionally, natural gas is a secure North American energy source, as 98 percent of the natural gas consumed in the United States is produced in the United States and Canada.
This news release contains “forward-looking statements,” which are based on current plans and expectations and involve a number of risks and uncertainties that could cause actual results and events to vary materially. For a full discussion of these risks and uncertainties, please refer to the “Risk Factors” section of the Registration Statement on Form S-1 initially filed by Lehigh Gas Partners LP on May 11, 2012 and the information included in subsequent amendments and other filings. These forward-looking statements are based on and include our expectations as of the date hereof. Subsequent events and market developments could cause our expectations to change. While we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if new information becomes available, except as may be required by applicable law.
About Lehigh Gas Partners
Lehigh Gas Partners, headquartered in Allentown, Pa., was formed to engage in the wholesale distribution of motor fuels and to own and lease real estate used in the retail distribution of motor fuels. Lehigh Gas Partners owns and leases sites located in nine states: Pennsylvania, New Jersey, Ohio, Florida, New York, Massachusetts, Kentucky, New Hampshire and Maine. For additional information, please visit www.lehighgaspartners.com.
About Clean Energy Fuels Corp.
Clean Energy Fuels Corp. (Nasdaq: CLNE) is the largest provider of natural gas fuel for transportation in North America and a global leader in the expanding natural gas vehicle fueling market. We have operations in CNG and liquefied natural gas (LNG) vehicle fueling and construction and operation of natural gas fueling stations. Wholly-owned subsidiaries include IMW Industries, Ltd., which supplies CNG equipment for vehicle fueling and industrial applications worldwide; NorthStar, which supplies LNG and liquefied to compressed natural gas fueling system technologies and equipment, station construction and operations; BAF Technologies, which provides natural gas vehicle systems and conversions for taxis, vans, pick-up trucks and shuttle buses; and Clean Energy Renewable Fuels (CERF), which develops renewable natural gas (RNG), or biomethane, production facilities in the U.S. For more information, visit www.cleanenergyfuels.com.