MLGW surpassed its goal of $5 million in liquefied natural gas sales revenue this year. As of November 1, LNG sales reached $5.5 million with year-end projections on pace to hit $6 million. On average, MLGW sells about 900,000 gallons of LNG per month.
“This helps keep our utility rates low. It continues to be a nontraditional revenue source for MLGW that benefits all of our customers,” said Michael Taylor, MLGW’s manager of Strategic Planning and Innovations.
LNG is natural gas that has been liquefied and chilled at extremely low temperatures for easier transport and storage. Since 2012, MLGW has sold $32.7 million in LNG from its Capleville plant.
United Parcel Service ranks as MLGW’s top LNG customer. UPS buys the alternative fuel for its over-the-road delivery fleet. By switching to LNG vehicles, companies, like UPS, are using less gasoline and diesel fuel while reducing its environmental footprint and decreasing its greenhouse gas emissions.
In addition to its commercial sales, the utility uses LNG to supplement its natural gas supplies. If temperatures drop to subfreezing conditions and demand for gas spikes in Memphis, MLGW can tap into its 12 million-gallon LNG reserve tank.
MLGW is the largest three-service public power utility in the nation, serving more than 431,000 customers in Memphis and Shelby County.