Press Releases

Press Releases


AOG Opens Third Public CNG Fueling Station

Fort Smith, Arkansas - Arkansas Oklahoma Gas Corporation (AOG) celebrated the opening of its third public Compressed Natural Gas (CNG) fueling station in the Fort Smith area on April 1, 2016. The station is located near the west end of Zero Street, approximately 1/4 mile from the Arkansas state line at 4419 Main Street in Arkoma, Oklahoma.

AOG has operated a private CNG fueling station in Fort Smith to fuel its fleet vehicles since 1982, and currently operates 75 vehicles on compressed natural gas. When asked about the use of CNG, Fred Kirkwood, Senior Vice President of Customer Development at AOG, replied "Compressed Natural Gas is an abundant, clean-burning alternative to gasoline and other transportation fuels." Kirkwood continued, "With current CNG prices around $0.98 per gasoline gallon equivalent (GGE), fleets operating in the Fort Smith area are able to realize savings of approximately 47% when compared to $1.85 unleaded gasoline." Kirkwood also emphasized that local supplies of natural gas are used when producing CNG, which supports local jobs, provides gas royalties to local property owners, and stimulates the local economy.

Now operating three public CNG fueling stations in the Fort Smith area, Kim Linam, AOG’s President and CEO, stated, "AOG is committed to offering affordable CNG to the public 24 hours a day, 7 days a week. AOG believes this infrastructure will further assist the expanding CNG vehicle market in Fort Smith and surrounding areas." AOG's other public fueling stations are located at 4315 Savannah Street and 2100 South Waldron Road in Fort Smith.

For additional details on AOG's public CNG fueling stations, contact:

Fred Kirkwood
Senior Vice President - Customer Development | 479-783-3181 x 2260

Eddie Fox
Vice President - Customer Development | 479-783-3181 x 2261


American Gas Association Statement about the State of the Union Address

American Gas Association (AGA) President and CEO Dave McCurdy issued the following statement regarding President Obama's State of the Union address.

"President Obama is taking aggressive action at home and abroad to reverse the effects of climate change. The United States has a credible leadership role on this issue, in part, because of the country's abundant supply of natural gas and the adoption of aggressive fuel economy standards that have led to significant and continued declining emissions. Natural gas is part of the solution to climate change and will help the United States make progress toward ambitious emissions reduction targets."

"Americans want natural gas to heat their homes, warm their water and cook their food because it is comfortable, efficient and affordable. Households with natural gas versus all-electric appliances save an average of $840 per year. In fact, low domestic natural gas prices have led to savings of almost $69 billion for residential natural gas customers over the past four years. In addition, households with natural gas versus all-electric appliances produce 37 percent lower greenhouse gas emissions."

The American Gas Association has released a report entitled "Dispatching Direct Use: Achieving Greenhouse Gas Reductions with Natural Gas in Homes and Businesses." This document serves as a resource to companies, policymakers and other stakeholders in advancing direct use of natural gas in homes and businesses as an emissions reductions tool.

View the full story here


Alpha Packaging, Boyd Metals investing in CNG truck fleet

Miami-based Ryder Systems recently expanded its compressed natural gas (CNG) truck fleet services into Arkansas, with Fort Smith-based Boyd Metals and Greenwood-based Alpha Packaging being the first two customers.

Robert Cook, who works in Ryder’s Fort Smith office, said the CNG trucks are made by Volvo in North Carolina and have a Cummins 12-liter engine. The cabs do not have a sleeper berth, and are used for daily roundtrips of less than 300 miles. The vehicles are more expensive. A truck that might cost $100,000 will cost about $160,000 with CNG. He said the prices are falling as more developments are made in CNG and as more companies convert to CNG.

The payoff, Cook said, is in the cost to operate the trucks. They estimate the extra cost of the vehicles is recovered by the third year – even with the lower price of diesel fuel.

View the full story here


CNG Stations Continue Expansion in Arkansas

Compressed natural gas stations around the state are seeing gains in fuel sales and demand, despite lower costs this year for traditional fuels.

The number of public stations has nearly doubled over the past 18 months — up to 12 from seven — with at least one company planning an additional site in the next year and a half.

And while drivers recently experienced a break in gasoline prices, the cost of natural gas throughout the state remains well below that of traditional fuels.

View the full story here


CNG conversion creates cost savings, more jobs for Fort Smith business

A Fort Smith-based company has added 30 employees this year and compressed natural gas could be part of the reason.

Billy Turner, fleet supervisor at Tri-State Enterprises, said the company has increased its staff from 100 employees last year to 130 this year thanks in part to sales growth and cost savings associated with the conversion of fleet vehicles now running off of CNG.

"We can show that just with the fuel savings alone, that we are starting up new routes," he said. "And everytime we start a route, that's one person driving and one person in the warehouse. We've been able to get several routes started."

View the full story here


Arkansas Energy Office offers rebates for alternative fuel vehicle conversions

The Arkansas Energy Office (AEO), a division of the Arkansas Economic Development Commission, today announced a total of $150,000 in rebates will be awarded through its Clean Fuel Vehicle Rebate Program, part of the Gaseous Fuels Rebate Program.

View the full story here


State Grant Money Aids CNG Stations

Three Fort Smith area businesses have applications in with the Arkansas Economic Development Commission’s Energy Office for grants to build a new compressed natural gas service station.

Frost Oil Company in Van Buren, Arkansas Oklahoma Gas and FS CNG have applied for some of the $2.4 million allotted in Act 532 during the last Arkansas Legislature to help build new natural gas vehicle filling stations and convert vehicles to natural gas.

View the full story here


Leading Natural Gas Vehicle Groups Join Forces to Advance Clean, Affordable Transportation Fuel

Two leading natural gas transportation advocacy groups are joining forces to advance the growth of clean and affordable natural gas vehicles (NGVs) in the United States. The Drive Natural Gas Initiative, formerly a collaboration between the American Gas Association (AGA) and America’s Natural Gas Alliance (ANGA), will integrate its activities with Natural Gas Vehicles for America (NGVAmerica) to help promote greater use of the nation's domestic abundance of clean, affordable natural gas in transportation.

View the full story here


Natural Gas is Efficient

This letter appeared in the Editorial Section of the Arkansas Democrat-Gazette on April 24, 2011.

Letter writer Jim L. Hall recently took issue with certain actions of the Environmental Protection Agency. In the process of criticizing them, he made a number of disparaging and inaccurate statements concerning natural gas. Specifically, that natural gas's octane level is insufficient to efficiently run an automobile engine and that the mileage delivered by natural gas is one-half that of gasoline.

A number of major U.S. corporations, including UPS, Verizon and AT&T, have made the decision to operate large fleets of compressed natural gas (CNG) powered vehicles. Locally, Arkansas Oklahoma Gas Corporation (AOG) in Fort Smith has operated a portion of its vehicle fleet on CNG since the early 1980's and currently operates 40 vehicles on CNG with no discernible loss of power or decrease in mileage. AOG also owns and operates the only public CNG fueling station in the state of Arkansas and currently sells CNG at a gasoline-gallon-equivalent (GGE) price of $1.07 to local customers as well as for vehicles in transit across the U.S. That $1.07 buys a GGE of 120 octane natural gas versus $3.70 for a gallon of 92 octane gasoline. In today's economic environment, it is critical that energy use decisions be based on accurate and up-to-date information and not on poorly researched data and decades old experiences.


Fort Smith

Mr. Callan is president of Arkansas Oklahoma Gas Corporation


AOG Shaves Gas Costs For Winter

Arkansas Oklahoma Gas Corp. customers will pay a little less for natural gas this winter than in 2009-10.

Mike Callan, AOG president, said Friday that decrease for Arkansas customers is based on a projected price for gas this coming winter of about 46.7 cents per hundred cubic feet (CCF) compared to about 49.1 cents per CCF in 2009.

Oklahoma customers will pay about 49 cents, down from 55 cents a year earlier.

View the full story here


Arkansas Tops List for Reducing Greenhouse Gas Emissions

Arkansas has grabbed a number one ranking in the push to go green.

Annually, carbon offset projects in Arkansas reduce enough greenhouse gases (GHGs) from the atmosphere to equal the amount of emissions produced by 322,380 passenger vehicles over an entire year, according to the Climate Action Reserve, North Americas largest carbon offset registry. Another way to measure the amount is to think of it in terms of the carbon removed from the atmosphere by growing 43,232,026 tree seedlings for 10 years. By reducing such a significant amount of GHGs through projects registered with the Climate Action Reserve, Arkansas has earned the status of reducing more GHG emissions than any other U.S. state. Joining Arkansas at the top of the list are California, New York, Texas and Alabama.

GHGs contribute to global warming by keeping heat, or radiative energy, in the atmosphere, and scientists point to a direct correlation between increased amounts of GHGs and extreme weather, such as this summers scorching temperatures and record-setting flooding. Carbon offset projects are activities that prevent GHGs from entering the atmosphere, making them climate change solutions that have an impact on the environment right now.

View the full story here


AOG Customers Can Expect Lower Bills

Residential Arkansas and Oklahoma customers of Arkansas Oklahoma Gas Corp. will pay less per month for natural gas this spring and summer.

According to a company news release, AOG filed its summer season cost of gas adjustments today with the Arkansas Public Service Commission and the Oklahoma Corporation Commission.

AOG's cost of gas to Arkansas customers will be 42.6 cents per hundred cubic feet (ccf) from today through Oct. 31, down from 49.1 cents per ccf this fall and winter.

Oklahoma customers will pay 39.7 cents per ccf, down from 54.6 cents per ccf they paid from Nov. 1 through today.

View the full story here


Natural Gas Proponents Not Giving Up on CNG Push

Oklahoma City-based Chesapeake Energy Corp. and Fort Smith-based Arkansas Oklahoma Gas Corp. refuse to give up on the effort to convince governments, businesses and individuals of the benefits of compressed natural gas (CNG) vehicles.

Danny Games, director of corporate development for Chesapeake’s Little Rock office, was recently in Fort Smith for a stop at the AOG natural gas fueling station. The trip between Little Rock and Oklahoma City included a marketing angle, with Games driving an SUV (Chevy Tahoe) fueled by compressed natural gas.

Games will spend between $1.25 and $1.30 per gallon of CNG to make the trip, compared to gasoline prices hovering between $2.40 and $2.50. Natural gas prices are roughly half that of regular gasoline, which is the primary advantage to using CNG. Natural gas exploration companies like Chesapeake and distributors like AOG also say natural gas vehicles burn cleaner (less emissions) and require less maintenance. They say these things because they are, technically speaking, true.

But broader CNG use in the next few years is doubtful for a few big reasons. First, the cost to convert vehicles is steep. The upfront cost to convert an SUV can range from $8,000 to $10,000. Depending on annual mileage, it could take five to 10 years for an individual to recover the cost.

Another obstacle is fueling infrastructure. Residents in the Fort Smith region, for example, have only the fueling station at AOG. And for long trips, an individual would have to carefully plan where and when to refuel.

View the full story here


Study Reports “Direct Use” of Natural Gas Saves Energy Costs, Reduces Greenhouse Gas Emissions

Washington, DCThe American Gas Association (AGA) today called attention to a recent study by the Gas Technology Institute that reports the increased “direct use” of natural gas in homes and businesses will reduce energy consumption, consumer energy costs and national CO2 emissions.  Direct use refers to using natural gas in a residential or commercial capacity such as space heating, water heating, cooking and clothes drying. 


The study, “Validation of Direct Natural Gas Use to Reduce CO2 Emissions,” found that when a societal subsidy such as a rebate or a tax credit is put in place to encourage the use of natural gas appliances, significant savings in energy costs, CO2 emissions, energy use, and electricity use can be achieved.


“Natural gas is the cleanest burning of all fossil fuels, and its delivery from the source of production to the site of end use is extremely efficient and environmentally friendly,” said David Parker, president and CEO of AGA.  “This study affirms that subsidies that incentivize consumers to use natural gas directly in their homes and businesses result in major cost savings, while lowering carbon output.”


When compared to the Energy Information Administration’s (EIA) 2008 Annual Energy Outlook (AEO), societal subsidies would provide the following benefits by 2030:


·         1.9 Quads energy savings per year (enough energy to heat 35 million American homes for a year)

·         96 million metric tons CO2 emission reduction per year (equivalent to taking 16 million cars off the road)

·         $213 billion cumulative consumer savings


Notably, the benefits derived from subsidies to increase the direct use of natural gas by 2030 significantly exceed comparable subsidies to electric end-use technologies. 


“Our country is striving to find an affordable energy solution for future generations.  Not only is natural gas abundant, but also the direct use of natural gas outshines all other applications in terms of cost and environmental footprint.  The evidence clearly shows that natural gas is a win for consumers and should be a major player the U.S. energy equation,” said Parker.


View the full report here.


Power shift? Proponents again push for the natural gas-powered vehicles

There were high hopes in 1982 at Arkansas Oklahoma Gas Corp. about the future of using compressed natural gas to fuel vehicles.


The Fort Smith-based natural gas utility, which has about 46,000 customers in Arkansas and 14,000 in Oklahoma, invested $70,000 to install a 10-vehicle compressed natural gas (CNG) fuel station in 1982, and by 1986 had installed CNG conversions on 70 of its 120-vehicle fleet. By the end of 1986, the company was using about 400 MCF (one thousand cubic feet) of CNG in the vehicles — an amount equivalent to 3,200 gallons of gasoline. The CNG use would peak at about 500 MCF in the late 1990s.


But there were problems. The vehicles were limited in how far they could travel, the CNG tanks were heavy and the vehicles experienced an approximate 15% power loss when using CNG, according to a detailed May 2009 memo from AOG President Michael Callan (see the complete memo at the end of this story).


What’s more, the major vehicle manufacturers weren’t advancing the technology and no reliable CNG conversion kits were available for the GM and Ford trucks used by AOG. Adding insult to injury, new Environmental Protection Agency rules requiring all CNG conversion kits be certified by the EPA “severely impeded AOG’s ability to convert vehicles to CNG in the late 1990’s,” noted Callan’s memo.


View the full story here.


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