Integrys Energy Group Inc.
) business ancillary, Trillium CNG, officially unveiled its
second compressed natural gas (CNG) station at Brown County, WI.
The company's first CNG station came into operation in De Pere,
WI in 2012. The new station is located in Green Bay at the site
of the Bay Beach Shell area which is close to Interstate 43.
Apart from the launch, Integrys Energy secured two CNG service
agreements with Green Bay-based carriers Paper Transport, Inc.
and Contract Transport Services. The CNG facility has room for
Class 8 semi-trucks with 53-foot trailers and includes two
dispensers. The facility is fitted with Integrys' patented
hydraulic intensifier which comes with faster refueling
capabilities at rates up to 10 diesel gas equivalents per
The current shale gas boom in the U.S. has widened
opportunities for its alternative use. Integrys Energy's efforts
to add 101 Class 8 accessible CNG stations by 2016 across 29
states will help tap the growing trucking business.
CNG's low-cost and clean burning nature is poised to attract
the truck market and will gradually reduce U.S. dependence on
oil. Integrys' bold step to venture into the still nascent CNG
market is commendable and will catapult the company's future
growth trajectory. In addition, natural gas consumption by car,
trucks and trains will witness gradual demand growth by 2020 in
Integrys Energy is also collaborating with other CNG
enthusiasts by lending its expertise. Recently, an Integrys
serviced CNG station of
Waste Connections Inc.
) came online in California. Waste Connections will prove to be
an important client for Integrys as it aims to convert 80% of its
purchased trucks to run on gas by 2018.
Given the favorable gas fundamentals, Integrys Energy is well
placed with a Zacks Rank #2 (Buy). Other U.S. gas producers to
make the most of the emerging CNG industry are
Chesapeake Energy Corp.
APACHE CORP (APA): Free Stock Analysis Report
CHESAPEAKE ENGY (CHK): Free Stock Analysis
INTEGRYS ENERGY (TEG): Free Stock Analysis
WASTE CONNCTION (WCN): Free Stock Analysis
To read this article on Zacks.com click here.