Chevron USA. Inc., a subsidiary of Chevron Corp., has signed a definitive agreement to form a joint venture with Mercuria Energy Trading (Mercuria), an integrated energy and commodities companies, to own and operate American Natural Gas LLC (ANG) and its network of 60 compressed natural gas (CNG) stations across the United States.
Chevron is building a large-scale, vertically integrated renewable natural gas (RNG) business in the United States. Through its partnerships with Brightmark and California Bioenergy, Chevron is developing projects to produce RNG from dairy digesters across the country. The creation of this joint venture will allow Chevron to rapidly grow its RNG value chain, complementing its previously announced plan to open more than 30 Chevron-branded CNG stations by 2025.
“Chevron is committed to producing a tenfold increase in RNG volumes by 2025 compared to 2020 as part of our higher returns, lower carbon strategy,” said Andy Walz, Chevron’s president of Americas Fuels & Lubricants. “This acquisition will advance our RNG business in support of customers who want to reduce their carbon footprint.”
“Mercuria is pleased to partner with Chevron and ANG founder Andrew West in growing ANG’s fueling network and continuing to provide a best-in-class decarbonization solution to the medium- and heavy-duty vehicle market,” said Chief Investment Officer Brian A. Falik. “Chevron’s excellent reputation of customer service, and their like-minded commitment to investment in the energy transition, make them the perfect partner to expand the ANG footprint.”