Certarus Ltd. has entered into a two year CNG supply agreement with a leading Large Scale Independent Permian Energy Company to support its strategy to reduce environmental impacts, including carbon emissions in the Permian Basin. Certarus has now entered into three major contracts this year in the Permian Basin as energy companies actively secure an uninterrupted supply of clean burning CNG to support their operations.
Through this contract, the energy company will displace the use of diesel fuel across its entire suite of operations with locally sourced CNG produced from its regional midstream network. In addition to reducing carbon and other air emissions, the contract will deliver fuel cost savings to the energy company and result in lower overall mileage exposure associated with fuel transportation. This more effective utilization of natural gas in the Permian Basin will also contribute to reducing the amount of gas that would otherwise be flared in the region.
Under the agreement, Certarus will displace a minimum of 27,000,000 gallons of diesel fuel with CNG, with the option for the energy company to expand up to 60,000,000 gallons during the term. Certarus expects to commence CNG supply immediately.
“Through our market-leading North American platform, Certarus provides solutions to industrial and other large volume customers to lower both their carbon emissions and costs. Our customers are appreciative of being able to immediately realize on this environmental and economic win-win as we all work towards a more sustainable future,” said Nathan Ough, Vice President of Certarus.
Energy companies across North America are increasing their use of dual fuel or electric applications to achieve reduced environmental impacts and lower costs. Through the use of natural gas in place of other more emission-intensive fuels, Certarus provides a supply of clean, cost effective energy to help support corporate Environmental, Social and Governance (ESG) best practices.