Chevron to Take Full Ownership of Beyond6 CNG Fueling Network
SAN RAMON, Calif. — Chevron U.S.A. Inc., a subsidiary of Chevron Corp., has inked a definitive agreement to take full ownership of Beyond 6 LLC and its network of 55 compressed natural gas (CNG) stations. Currently, B6 is co-owned by a Mercuria Energy Trading subsidiary and B6 CEO Andrew West.
Chevron is complementing the strength of its traditional products business with new offerings that help customers support a lower carbon future, and renewable natural gas is an essential part of its portfolio of solutions, according to the company. With the acquisition, Chevron can market the renewable natural gas (RNG) it either produces or procures through a nationwide network of CNG locations.
Additionally, through collaborations with Brightmark LLC and California Bioenergy LLC, Chevron is developing projects across the United States designed to convert fugitive methane emissions from dairies to a beneficial use as RNG, which can be considered carbon negative on a lifecycle basis under California's Low Carbon Fuel Standard, the company stated.
"Chevron has seen strong demand for our RNG-to-CNG fuel offering from new and existing customers," said Andy Walz, Chevron's president of Americas Products. "Because of its carbon negative attribute and the ability of fleet operators to efficiently adapt vehicles to run on CNG, renewable natural gas can be a lower carbon solution for fleets seeking to reduce their lifecycle greenhouse gas emissions."
Mercuria and Chevron will enter into a long-term supply relationship to deliver renewable natural gas to Chevron as part of the transaction.
"B6 represents a best-in-class operator in the build-out of a renewable natural gas network, and Mercuria has been excited to help the company grow from a stand-alone business to one that can help drive growth under Chevron," said Brian A. Falik, Mercuria's chief investment officer. "The partnership with Chevron has been a great success, and we look forward to helping them supply renewable fueling solutions to their customers."
The transaction is subject to customary closing conditions.
Founded in 2004, Mercuria is one of the largest independent energy and commodity groups. Over the next five years, the company will direct half of its investment toward the energy transition.
San Ramon-based Chevron is one of the world's leading integrated energy companies. It produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance business and the industry.