Energy Gas del Peru & Clean Energy Fuels Corp. Form New Company

In a press release today, Clean Energy Fuels Corp. announced that its operating subsidiary, Clean Energy, joined with Energy Gas del Peru and have formed the new business entity, Clean Energy del Peru. The new company will develop and operate compressed natural gas (CNG) fueling stations to support the rapidly expanding CNG vehicle population in Peru.

Clean Energy del Peru is initiating construction of its first, state-of-the-art CNG fueling station, strategically located midway between downtown Lima, Peru’s capital city, and the Lima International Airport. The company reported that 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.

It was reported that presently 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 stated that it 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.

Official Press Release

– related articles –
Production of Peru’s Natural Gas Rises 55 percent in One Year (by LIP, Aug 3, 2007)
Lima Modernizes Public Transportation (by LIP, Jul 30, 2007)