UPS contract further highlights growing market demand

ATLANTA – Jan. 16, 2014 – Pivotal LNG, a wholly owned subsidiary of AGL Resources (NYSE: GAS), announced that it has entered into its second agreement with UPS (NYSE: UPS) to provide liquefied natural gas (“LNG”) to UPS fleet operations in Jacksonville, Fla.

Pivotal’s first LNG supply agreement with UPS was announced in April 2013. Under that agreement, Pivotal is providing LNG to UPS facilities in Nashville and Knoxville, Tenn.

“We are very pleased to expand the LNG supply service we provide to UPS. We will now serve three UPS facilities, and we look forward to continuing to fulfill their LNG needs for years to come,” said Steve Cittadine, president, storage and fuels for AGL Resources.

Recently UPS announced that it is committed to expanding its use of LNG as a transportation fuel. The company is building LNG fueling stations at several of its facilities and is in the process of replacing a large number of its diesel-fueled tractors with LNG-fueled tractors. “Our tractors operate on high-mile routes in the southern regions,” said Mike Casteel, director of fleet procurement for UPS. “Pivotal is providing the LNG fuel supply we require to meet the needs of our LNG tractor fleet in key locations.”

AGL Resources, the parent company of Pivotal LNG, is one of the largest operators of liquefaction facilities in the nation and has more than four decades of experience in the LNG business. AGL Resources owns and operates seven natural gas distribution utilities and several LNG peak-shaving facilities throughout its footprint. “With access to multiple LNG and natural gas supply locations, and its merchant liquefaction facility in Trussville, Ala., Pivotal LNG is uniquely positioned to offer consistent fuel supply to its customers in several regions,” said Cittadine.

LNG is an advanced transportation fuel that is an attractive alternative for many fleet operations. It is domestically produced and provides companies such as UPS with an environmentally friendly, cost-effective transportation fuel option, which can also help support the achievement of corporate sustainability goals.

With the abundance of domestically produced natural gas, there is a wide and sustainable price differential between natural gas and petroleum-based fuels. The stability of natural gas supply helps to insulate LNG users from price volatility, often resulting in significant fuel cost savings. In addition, LNG is a safe transportation fuel. It is nontoxic and not corrosive, and it leaves no residue if spilled.