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Chevron Closes JV With Mercuria to Buy American Natural Gas

Chevron and Mercuria Energy close on a joint venture to own and operate American Natural Gas and its 60 compressed natural gas stations.

Chevron Corp.  (CVX) - Get Chevron Corporation Report on Friday announced it closed on its joint venture agreement with Mercuria Energy Trading to own and operate Saratoga Springs, N.Y.-based American Natural Gas and its network of 60 compressed natural gas stations across the United States.

The creation of the joint venture with Geneva company Mercuria, one of the world’s largest integrated energy and commodities companies, will allow subsidiary Chevron U.S.A. to rapidly grow its renewable natural gas value chain, complementing its previously announced plan to open more than 30 Chevron-branded CNG stations by 2025, the company said in a previous statement announcing the proposed JV.

Chevron U.S.A. is building a large-scale, vertically integrated renewable natural gas business in the United States, it said in the statement. Through its partnerships with Brightmark and California Bioenergy, San Ramon, Calif.-based Chevron is developing projects to produce renewable natural gas from dairy digesters across the country.

“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,” Andy Walz, Chevron’s president of Americas Fuels & Lubricants, said in a company statement. “This acquisition will advance our renewable natural gas business in support of customers who want to reduce their carbon footprint.”

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Mercuria Chief Investment Officer Brian A. Falik welcomed the JV with Chevron.

“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,” Falik said. “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.”

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Shares of Chevron on Friday rose 2.8% to close at $104.33.