Total making big bet on natural gas for trucking

French energy giant Total is making a big investment in natural gas fuel, taking a 25 percent stake in Newport Beach, California-based Clean Energy Fuels Corp., a company who once counted T. Boone Pickens as a major investor.

Along with the $83.4 million Total is investing to become Clean Energy’s largest stockholder, the two companies also plan to create a leasing program to help companies and drivers acquire natural gas fuel trucks to replace diesel trucks, which don’t burn fuel as efficiently. . Total intends to provide up to $100 million of credit support for the program, which the companies expect to launch in Q3 2018.

“Customers and regulators around the world are demanding cleaner transportation alternatives, particularly in the heavy-duty market,” said Patrick Pouyanné, chairman and CEO of Total. “Natural gas can become the fuel of choice. Total believes there is a strong development opportunity in the natural gas for transportation market in particular in the United States which benefits from unique giant low-cost gas resources.”

“There couldn’t be a better endorsement for the future of natural gas heavy-duty trucking in North America than for Total, one of the largest energy companies in the world, to step up with this investment,” said Andrew J. Littlefair, CEO and president of Clean Energy. “Being a European-based company, Total is all too aware of the opportunity to transition to cleaner alternative fuels. Launching the financing program should expedite the adoption of natural gas as the most environmentally friendly fuel for the trucking industry.”

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Clean Energy is postponing its annual shareholders meeting from May 30 to June 8 to give investors more time to consider the deal, which will require their approval.

Promoting the use of natural gas and increasing its share in Total’s overall output are part of Total’s integrated strategy to expand its low carbon businesses, according to the company. In Texas, Total has several operations and in 2016, acquired the remaining 75 percent of Barnett Shale assets from Chesapeake Energy it did not currently own, making it the 100 percent owner and operator of the assets.

Properties in the transaction included approximately 215,000 net developed and undeveloped acres, wells, leases, minerals, buildings and properties. Total had purchased a 25 percent stake in the Barnett Shale in 2009 for $800 million in cash, plus $1.45 billion in future development costs. – FWBP Staff

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