Chevron has agreed to fully acquire energy solutions firm Beyond6 (B6) and its network of 55 compressed natural gas (CNG) stations across the US for an undisclosed sum.
Under the deal, Chevron subsidiary Chevron USA will acquire a 100% stake in B6 from Chevron’s current B6 co-owners, a subsidiary of Mercuria Energy Trading (Mercuria) and B6 CEO Andrew West.
Chevron Americas Products president Andy Walz said: “Chevron has seen strong demand for our RNG-to-CNG fuel offering from new and existing customers.
“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 will also sign a long-term supply agreement with Chevron, whereby the latter will receive renewable natural gas as part of the transaction.
Mercuria chief investment officer Brian Falik said: “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.
“The partnership with Chevron has been a great success, and we look forward to helping them supply renewable fueling solutions to their customers.”
Chevron said the acquisition will allow it to market the RNG through CNG locations in the US.
The transaction is subject to customary closing conditions.
Earlier this year, Reuters reported that Chevron secured a new shale exploitation concession in the Vaca Muerta formation from the Argentine province of Neuquen.
As part of the three-year pilot stage, Chevron is planning a $65.7m investment to drill, complete, and commission five horizontal wells.