Chevron USA Inc, a subsidiary of Chevron Corporation, announced Thursday the signing of definitive agreements with Mercuria Energy Trading. The agreement will therefore create a joint venture. Indeed, the latter Company is one of the world’s largest integrated energy and commodities firms.
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Accordingly, the agreement will let the JV own and operate American Natural Gas LLC (ANG). It will also operate its network of 60 compressed natural gas (CNG) stations across the United States.
Chevron and Mercuria on the JV
Indeed, Chevron is building a large-scale, vertically integrated renewable natural gas business in the United States. Through its partnerships with Brightmark and California Bioenergy, for instance, the Company is developing projects to produce renewable natural gas from dairy digesters.
This joint venture’s creation will allow Chevron to grow its renewable natural gas value chain rapidly. Additionally, it will help complement its previously announced plan to open more than 30 Chevron-branded CNG stations by 2025.
In this sense, Andy Walz, Chevron’s president of Americas Fuels & Lubricants, commented in a media release; “Chevron is committed to producing a tenfold increase in renewable natural gas volumes by 2025 compared to 2020 as part of our higher returns, lower carbon strategy.”
Moreover, Walz noted that the acquisition will advance Chevron’s renewable natural gas business to support customers who want to reduce their carbon footprint.
More about Mercuria
Similarly, Chief Investment Officer Brian A Falik commented on the acquisition; “Mercuria is pleased to partner with Chevron and ANG founder Andrew West in growing ANG’s fueling network.”
Besides, the CIO noted that the company is happy in “continuing to provide a best-in-class decarbonization solution to the medium- and heavy-duty vehicle market.”
Falik also noted that Chevron has an “excellent reputation of customer service.” Therefore, “their like-minded commitment to investment in the energy transition makes it the perfect partner to expand the ANG footprint.”
Lastly, the Company noted the transaction is subject to customary closing conditions.
Lastly, and it is worth noting, Mercuria is one of the largest independent energy and commodity groups in the world. Since 2004, as an integrated group, Mercuria has been present all along the commodity value chain. Particularly, it involves in activities forming a balanced combination of trading flows, strategic assets, and structuring solutions.