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SWN Sells Compressed Gas Fuel Stations in Conway, Damascus

2 min read

An affiliate of Southwestern Energy Co. has sold two public compressed natural gas fueling stations, one in Conway and the other in Damascus, to American Natural Gas LLC of Saratoga Springs, New York, the companies said Monday.

ANG and Southwest announced the purchase in separate news releases.

The Conway station, which has two dual-hose gas dispensers, is at 2125 Sanders Road, just off Interstate 40. The Damascus location, with three dual-hose dispensers, is on U.S. Highway 65 South. The purchase is a stretch into a new area for ANG, which distributes alternative fuels mainly in the Northeast. 

Both ANG and Southwestern said that both stations, which feature self-service pumps with credit card capabilities, will remain open 24 hours a day during the ownership transition. “We are pleased to welcome ANG as a new investor in our community, and look forward to working with them as both Central Arkansas stations will continue to supply CNG to Southwestern Energy’s fleet in support of our extensive operations in the Fayetteville Shale,” said George Sheffer, Southwestern’s vice president of operations-Fayetteville Shale.

But the move was another signal of Southwestern’s decreased presence in the Fayetteville Shale, an area where gas production has fallen significantly in recent years. In January, the publicly traded company based in Houston, Texas, said it was shedding 40 percent of its overall workforce, laying off about 1,100 workers. It also paused its drilling program, citing a precipitous decline in natural gas prices.

The Southwestern press release said that the company currently has 958,000 acres in the Fayetteville Shale area, including 3,700 producing wells. However, the number of drilling rigs exploring for gas in the area by any company had fallen from 10 in January 2015 to none by February, according to Baker Hughes Inc., an oilfield services company that tracks exploration.

An ANG spokesman had no information on a sale price for the two fueling stations, but said current employees at the outlets will keep their jobs.

“We’re looking forward to a seamless transition as we continue to supply Southwestern Energy’s fleet, it’s loyal customers and any new transportation companies interested in converting to CNG,” ANG CEO Andrew West said in a statement. “It’s clear the local community is leading the way in alternative fuel use, and we’re excited to be part of that solution.”

The company said that switching from gasoline to compressed natural gas can cut carbon monoxide emissions by more than 90 percent, and that running heavy-duty trucks on CNG costs significantly less than running them on gasoline or diesel.

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