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Sempra Energy (SRE) Opens CNG Powered Station to Public
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Southern California Gas Co. (“SoCalGas”), a regulated subsidiary of diversified energy company, Sempra Energy (SRE - Free Report) , announced the opening of a compressed natural gas (“CNG”) station in the Pico Rivera warehouse and distribution district to the public.
CNG to Lower pollution
The heavy-duty plant will aid SoCalGas’ efforts to lower pollution levels by offering CNG-powered vehicles a convenient refueling location that is clean and affordable. CNG-powered heavy-duty trucks are estimated to reduce smog forming nitrogen oxide emissions by 90%from the California Air Resources Board emissions standards and they emit 15% less greenhouse gas.
The initiative should improve the quality of lives of the people residing near transportation corridors significantly.
Government Support
SoCalGas has procured funds worth $150,000 from the Mobile Source Air Pollution Reduction Review Committee, which would cover equipment, installation and other costs required to to build the CNG station.
The station has been designed to suit the convenience of heavy-duty trucks with features such as wide driveways for ease of turning, high canopies and sturdy compressors for fast fueling.
Note that SoCalGas has been promoting the use of CNG-powered vehicles with its "try before you buy" truck rental program. The program allows customers to experience the performance and efficiency of a CNG-powered vehicle for free for two weeks. In addition, SoCalGas offers education, information and consultation to general public as well as its partners, encouraging them to come up with new refueling methods.
Capital Investment Plans
Sempra Energy has multiple development ventures underway, all of which are expected to boost its top and bottom line over the long term. The company plans to spend $18.5 billion as capital expenditure between 2016 and 2020.
Headwinds
However, Sempra Energy’s operations are subject to risks associated with breakdown or failure of equipment or processes due to fuel supply or transportation disruptions, natural calamities and accidents.
For example, a massive gas leak was being reported from a natural gas well connected to the Aliso Canyon underground storage facility near Porter Ranch in Los Angeles, CA since Oct 23, 2015. Aliso Canyon is the second-largest gas storage facility of its kind in the U.S. and it belongs to the SoCalGas. The facility represents 63% of the SoCalGas-owned natural gas storage capacity. On Jan 6, Governor Jerry Brown issued a state of emergency and the leaking well was permanently sealed on Feb 18, 2016.
Zacks Rank
Sempra Energy holds a Zacks Rank #4 (Sell). Some better-ranked players in the same space include Just Energy Group Inc. , sporting a Zacks Rank #1 (Strong Buy), and Clean Energy Fuels Corp. (CLNE - Free Report) and MDU Resources Group Inc. (MDU - Free Report) , each carrying a Zacks Rank #2(Buy).
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Sempra Energy (SRE) Opens CNG Powered Station to Public
Southern California Gas Co. (“SoCalGas”), a regulated subsidiary of diversified energy company, Sempra Energy (SRE - Free Report) , announced the opening of a compressed natural gas (“CNG”) station in the Pico Rivera warehouse and distribution district to the public.
CNG to Lower pollution
The heavy-duty plant will aid SoCalGas’ efforts to lower pollution levels by offering CNG-powered vehicles a convenient refueling location that is clean and affordable. CNG-powered heavy-duty trucks are estimated to reduce smog forming nitrogen oxide emissions by 90%from the California Air Resources Board emissions standards and they emit 15% less greenhouse gas.
The initiative should improve the quality of lives of the people residing near transportation corridors significantly.
Government Support
SoCalGas has procured funds worth $150,000 from the Mobile Source Air Pollution Reduction Review Committee, which would cover equipment, installation and other costs required to to build the CNG station.
The station has been designed to suit the convenience of heavy-duty trucks with features such as wide driveways for ease of turning, high canopies and sturdy compressors for fast fueling.
SEMPRA ENERGY Price
SEMPRA ENERGY Price | SEMPRA ENERGY Quote
Promotion of CNG Powered Trucks
Note that SoCalGas has been promoting the use of CNG-powered vehicles with its "try before you buy" truck rental program. The program allows customers to experience the performance and efficiency of a CNG-powered vehicle for free for two weeks. In addition, SoCalGas offers education, information and consultation to general public as well as its partners, encouraging them to come up with new refueling methods.
Capital Investment Plans
Sempra Energy has multiple development ventures underway, all of which are expected to boost its top and bottom line over the long term. The company plans to spend $18.5 billion as capital expenditure between 2016 and 2020.
Headwinds
However, Sempra Energy’s operations are subject to risks associated with breakdown or failure of equipment or processes due to fuel supply or transportation disruptions, natural calamities and accidents.
For example, a massive gas leak was being reported from a natural gas well connected to the Aliso Canyon underground storage facility near Porter Ranch in Los Angeles, CA since Oct 23, 2015. Aliso Canyon is the second-largest gas storage facility of its kind in the U.S. and it belongs to the SoCalGas. The facility represents 63% of the SoCalGas-owned natural gas storage capacity. On Jan 6, Governor Jerry Brown issued a state of emergency and the leaking well was permanently sealed on Feb 18, 2016.
Zacks Rank
Sempra Energy holds a Zacks Rank #4 (Sell). Some better-ranked players in the same space include Just Energy Group Inc. , sporting a Zacks Rank #1 (Strong Buy), and Clean Energy Fuels Corp. (CLNE - Free Report) and MDU Resources Group Inc. (MDU - Free Report) , each carrying a Zacks Rank #2(Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>