Chevron and Mercuria announce CNG fuelling network joint venture
Chevron U.S.A. Inc., a subsidiary of Chevron Corporation, one of the world’s largest integrated energy companies has announced the signing of definitive agreements to form a joint venture with US-headed Mercuria Energy Trading, part of Mercuria Energy Group Ltd (Mercuria), one of the world’s largest integrated energy and commodities companies, to own and operate American Natural Gas LLC (ANG) and its network of 60 compressed natural gas (CNG) stations across the United States.
Chevron is building a large-scale, vertically integrated renewable natural gas business in the United States. Through its partnerships with Brightmark LLC and California Bioenergy LLC (CalBio), Chevron is developing projects to produce renewable natural gas (RNG) from dairy digesters across the country.
Chevron is committed to producing a tenfold increase in renewable natural gas volumes by 2025 compared to 2020 as part of our higher returns, lower carbon strategy. This acquisition will advance our renewable natural gas business in support of customers who want to reduce their carbon footprint, said Andy Walz, President of Chevron Americas Fuels & Lubricants.
The creation of this joint venture will allow Chevron to rapidly grow its renewable natural gas value chain, complementing its previously announced plan to open more than 30 Chevron-branded CNG stations by 2025.
Mercuria is pleased to partner with Chevron and ANG founder Andrew West in growing ANG’s fueling network and continuing to provide a best-in-class decarbonization solution to the medium- and heavy-duty vehicle market. Chevron’s excellent reputation of customer service, and their like-minded commitment to investment in the energy transition, make them the perfect partner to expand the ANG footprint, said Brian A. Falik, Chief Investment Officer at Mercuria.
The transaction is subject to customary closing conditions.