Thursday, October 3, 2013

Tenaska to Launch Natural Gas Transportation Fuels Business



OMAHA, Neb. – Leading independent energy company Tenaska is launching a marketing and development company in response to the growing use of liquefied natural gas (LNG) and compressed natural gas (CNG), together NG fuels, in the transportation sector and among industries using high-horsepower engines. Chairman of Natural Gas Vehicles for America (NGVAmerica) Doug Clark has signed on to lead commercial activities for the new affiliate, Tenaska NG Fuels, LLC (TNG Fuels).

TNG Fuels will leverage Tenaska’s energy marketing expertise and its 26 years of project development and commercial financing experience to assist utilities and customers in the trucking, mining, railroad, vessel and other transportation industries to realize cost savings and meet new and changing environmental regulations. TNG Fuels also plans to help customers, manage commodity risk, build commercial arrangements and strategically site, develop and finance production and distribution facilities.

“Tenaska is well-equipped to meet the needs of this expanding natural gas fuels market,” said Jerry Crouse, Tenaska CEO and vice chairman. “We have customers that have looked to us for these services. What the industry needs and what we have to offer are a great match – natural gas pipeline and downstream logistics expertise, a strong record of energy project siting and development, and a commitment to customer service in a credit-worthy package.”

Clark is the former president of the Metropolitan Utilities District (MUD) in Omaha, Neb., one of the first municipal utilities to contract with a third party to market LNG to companies transitioning to the fuel for operations or transportation. Clark also oversaw the fuel conversion of a fleet of 200 vehicles from gasoline and diesel fuel to CNG and the development of the infrastructure required to support it, including several public fueling stations. MUD sales of CNG are on track to total the equivalent of 400,000 gallons in 2013.

“Doug’s reputation and experience as an early mover in the NG fuels sector further enhances what we can offer,” Crouse said.

“The recent proliferation of shale gas production in the United States has made the use of natural gas as a transportation fuel very attractive compared to the traditional diesel fuel used in many types of engines,” Clark said. “MUD saw this and set out to be the leading provider of NG fuels to the transportation industry in the Midwest. I was pleased to lead MUD’s early entry into the market and look forward to leveraging Tenaska’s international reach and strong reputation in the energy industry to develop and expand NG fuels markets.” 

Clark said Tenaska’s ability to bring a “full solution” to customers in the NG fuels space attracted him to the opportunity. Tenaska, based in Omaha, is one of the leading independent power producers in the U.S., with regional offices in Dallas, Denver, Pittsburgh and Calgary and Vancouver, Canada. Forbes magazine ranks Tenaska 35th among the largest privately held U.S. companies, based on 2011 revenues. 

Affiliate Tenaska Marketing Ventures (TMV) provides natural gas commodity, volume management, hedging and asset management products and services and is consistently ranked as one of the top 10 natural gas marketers in North America by Platt’s Gas Daily. TMV sold or managed 2.2 trillion cubic feet of gas in 2012, a volume equal to about 9 percent of total U.S. gas consumption. For four years, TMV has been ranked first in gas pipeline trading capacity by Capacity Center, which monitors and collects capacity and operational information on all interstate pipelines.

Tenaska BioFuels, LLC, the company’s renewable fuels and agricultural commodities marketing affiliate, operates across the U.S. and in 17 countries, handling downstream logistics (rail, truck and vessel) for a variety of biofuels producers and agricultural commodity processors.

Tenaska and its affiliates have developed and constructed approximately 9,000 megawatts (MW) of natural gas-fueled and renewable power generation, and manage operations for approximately 11,000 MW of power generation consisting of 14 power plants. The company has raised approximately $12 billion for project and company-related debt through various combinations of commercial banks, capital markets and company-partnership equity.

“Tenaska’s message to the NG fuels market is pretty simple: You have options. We are ready to be one of them. And we have a record of delivering value in each of these services,” Clark said.


About Tenaska
Tenaska, based in Omaha, Neb., is one of the largest independent energy companies in North America, with more than 26 years of success in developing electric generating plants and expertise marketing natural gas, electricity and biofuels. Affiliate Tenaska Marketing Ventures is ranked as one of the top 10 natural gas marketers in North America by Platt’s Gas Daily and provides natural gas commodity, volume management, hedging and asset management products and services. Tenaska BioFuels, LLC provides independent procurement, marketing, supply chain management, transportation, storage and risk management to ethanol, biodiesel and agricultural market participants. Tenaska Power Services Co. specializes in physical power marketing and electric asset management for utilities and non-utility generators in the U.S. from coast to coast and in Canada. 

The privately held company also is involved in asset acquisition and management; fuel supply; natural gas exploration, production and transportation systems; and electric transmission development. Tenaska affiliates have developed and constructed about 9,000 megawatts (MW) of natural gas-fueled and renewable power generation, as well as natural gas gathering lines. Affiliates manage approximately 37,000 MW of assets on behalf of itself, a variety of customers and private equity investors. This includes more than 26,000 MW managed for customers by energy marketing affiliates and approximately 11,000 MW of power generation consisting of 14 power plants. Seven of those plants are owned by Tenaska in partnership with other companies and seven are private equity investments managed by Tenaska Capital Management, LLC. For more information about Tenaska and Tenaska NG Fuels, LLC, visit www.tenaska.com

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