Citing the success of liquefied natural gas (LNG) within California markets, Earth Biofuels Inc. subsidiary Applied LNG Technologies (ALT) said it has renewed a three-year LNG supply agreement with the Redlands, CA. The City of Redlands utilizes LNG as transportation fuel for its municipal fleet vehicles, and has built an LNG and compressed natural gas (CNG) refueling station for public use within its city limits. “This renewal exemplifies our recent successes in growing our profitable LNG business, especially in the California markets,” stated Earth Biofuels CEO Dennis McLaughlin. “We are now in the process of expanding our product availability to make LNG available in major cities outside of California.” Earth Biofuels noted that LNG meets California’s strict emission standards and is now more readily available for use by commercial vehicles, heavy-duty trucks, utility companies, fleets, light-duty trucks and consumer CNG vehicles. Vehicles fueled by the transportation grade LNG produce approximately one-sixth of the nitrous oxides (NOx) and up to 15% less greenhouse gases than comparable petroleum diesel fueled vehicles. Through California’s South Coast Air District and Air Quality Management grants, the City of Redlands will operate 20 of its 32 municipal vehicles on LNG/CNG fuels by its fiscal year end.

FERC approved plans by Texas Eastern Transmission to construct and operate lateral facilities, consisting of approximately 3.79 miles of 20-inch diameter pipeline, a meter and regulating station and ancillary facilities to serve a gas-fired power plant in Chambers County, TX, 25 miles east of Houston. The Cedar Bayou lateral project will provide up to 360,000 Dth/d to the Cedar Bayou Power Plant owned by NRG Energy Inc. The Commission also approved Texas Eastern’s request to establish initial incremental rates for firm and interruptible service on the lateral. Texas Eastern has executed a precedent agreement with NRG’s affiliate, NRG Power Marketing, to provide 360,000 Dth/d of firm transportation service for a primary term of 10 years and has said it will negotiate a discounted firm backhaul deal with NRG Power Marketing. The project will cost an estimated $16.5 million with an overall rate of return of 12.13 %.

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