By October 24, 2015 Read More →

First Texas public-private partnership to build CNG fueling station

CNG Energy Partners expect P3 model to become more popular in Texas

The City of Lake Jackson, Texas has signed a ten year contract CNG Energy Partners, LLC to build and operation a CNG fueling station, an arrangement the partners say is the first of its kind in the state.

CNGThe new compressed natural gas (CNG) fueling station is located at 204 Medical Drive in Lake Jackson, a community of 27,000 within the Houston metropolitan area. Mayor Joe Rinehart says the city is pleased to pioneer a unique P3 model with Dallas-based CNG Energy Partners, “introducing us to building and operating the public side of a CNG fueling station with private funds.

“Providing the local community an option to fuel with cleaner and cheaper, domestically produced fuel will encourage many local companies to utilize CNG,” Rinehart said in a press release.

The commercial truck-friendly CNG fueling facility will support the growing local desire to embrace the latest environmental technologies and reduce pollution levels in their surrounding communities, says the mayor.

The P3 legal structure allows the City of Lake Jackson to save money by utilizing CNG for its own fleet and share the financial and environmental benefits of CNG fueling with the local community, the release said.

The CNG fueling station is currently being built and the partners expect it to open in Dec.

“We believe that CNG station development through implementation of the Public-Private Partnership model will soon become a predominant method that public entities can utilize to implement successful CNG fueling programs,” said Dmitri Tisnoi, president of CNG Energy Partners.

“This model is a win for all parties. P3 allows municipalities and school districts to dramatically increase project ROI, by combining fuel savings from fleet operations on CNG with portions of revenues from public sales.”

The use of compressed natural gas fuel reduces operating costs for vehicle and fleet owners and significantly reduces greenhouse gas emissions. Additionally, natural gas is a secure North American energy source with 95 per cent of the natural gas consumed produced in the United States, the partners said.

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