Encana Corp. has opened a compressed natural gas (CNG) fueling station in Parachute, CO, its eighth North American fueling station since it began several years ago to actively integrate what it produces into its transportation and drilling rig units.

The fueling station in Parachute, co-located with a Shell Oil gasoline station, is open to registered Colorado natural gas vehicles with proof of CNG decals, as well as out-of-state vehicles.

“By utilizing domestically produced, abundant natural gas, drivers can realize significant cost savings and environmental benefits,” said Encana Natural Gas Inc. Vice President Matt Most. “Encana has been realizing those benefits since 2006 and in fact, last year saved nearly $16 million by using natural gas instead of diesel and gasoline in our operations.”

The Calgary operator “has converted nearly 57% of its drilling rig fleet and approximately 29% of its fleet vehicles to run on natural gas,” Most said.

Encana long has been a supporter of natural gas-fueled vehicles, as well as drilling rigs. It owns and operates a natural gas fueling station in the Shreveport, LA, area, as well as 10 mobile natural gas fueling stations and seven CNG stations (see Daily GPI, March 26, 2012; April 6, 2011). Earlier this year it commissioned the Cavalier liquefied natural gas (LNG) facility in Alberta, considered one of the keys to bring higher volumes of natural gas to heavy-duty trucking and other fleets in Western Canada and elsewhere (see Daily GPI, Feb. 1).

Using natural gas-powered rigs in the Haynesville Shale reduced drilling costs by an estimated 47%, or about $830,000 (see Daily GPI, March 26, 2012). Based on consuming about 500,000 gallons of fuel, the liquefied natural gas (LNG) price averaged the equivalent of $1.11/gallon diesel, compared with the actual average diesel price at the time, $3.28.

Encana also was running 14 natural gas rigs across North America last year, including two in the Denver-Julesburg Basin north of Denver. More than 200 of its fleet vehicles are fueled by natural gas. Two years ago the operator also became the largest liquefied natural gas transporter in North America as sole supplier of Heckmann Corp., a water company serving onshore producers. Heckmann powers most of its fleet with CNG (see Daily GPI, April 6, 2011).