Chicago-based Integrys Energy Group Inc. last Thursday moved into the natural gas transportation business, acquiring two compressed natural gas (CNG) fueling companies. It is a first for the owner/operator of six utilities in the Upper Midwest.

Integrys purchased Texas-based Pinnacle CNG Systems and Utah-based Trillium USA, both previously owned by Wagner & Brown Ltd. The acquisitions will allow Integrys to enter the CNG fueling market. Integrys is the holding company of People Gas Light and Coke Co., Wisconsin Public Service Corp. and four other utilities spread around parts of Illinois, Michigan, Minnesota and Wisconsin.

The purchase was an all-cash deal, and Integrys did not divulge the overall price, but it involved acquiring all outstanding common shares and membership interest in both Pinnacle and Trillium. The two CNG companies become subsidiaries of Integrys Transportation Fuels LLC, the operator of the holding company’s CNG activities.

Integrys views CNG as a transportation alternative growing as a result of a combination of factors including competitive prices, environmental advantages and the nation’s growing supplies of domestically based natural gas, the company said.

The company said it is counting on being able to build on the 20-year histories of the two CNG firms, enabling it to use existing fueling infrastructure and market reputations. Pinnacle and Trillium provide Integrys with capabilities in all stages of the CNG value chain, the company said. That includes refueling equipment design and manufacturing, station design, engineering and construction and operation/maintenance services.

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