Pivotal LNG enters into agreement to supply liquefied natural gas to UPS facilities in Tennessee

Tue Apr 23, 2013 2:17pm EDT

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LNG vehicles become an integral addition to company's leading-edge
alternative fuel and advanced technology fleet

ATLANTA - Pivotal LNG, a wholly owned subsidiary of AGL Resources (NYSE: GAS), announced that it has entered into an agreement with United Parcel Service Inc. (NYSE: UPS) to provide liquefied natural gas (LNG) for UPS fleet operations in Nashville and Knoxville, Tenn.

"We are pleased to enter into this agreement with UPS. One of the benefits we are able to offer our customers is continuity of LNG supply because of our access to multiple supply locations within the region," said Steve Cittadine, President, Storage and Fuels for AGL Resources.

UPS is expanding its use of LNG as a transportation fuel by replacing many of the diesel tractors that are based in the Knoxville and Nashville UPS terminals with LNG-fueled tractors.

"These tractors will operate on high mile routes in Tennessee and surrounding states," said Mike Casteel, director of fleet procurement for UPS. He added, "AGL Resources is providing an economical and secure source of fuel, allowing us to justify the incremental capital investment in LNG infrastructure and vehicles."

The 10-year contract calls for Pivotal LNG to provide UPS with an average of 500,000 gallons of LNG per month for its fueling stations, which UPS will own and operate.

"Our product is an advanced transportation fuel that is domestically produced, and because it is a greener fueling option, it also provides the benefit of helping environmentally conscious companies like UPS meet their sustainability goals," said Cittadine.

Given the wide and expected sustained price differential between natural gas and petroleum-based fuels, Pivotal LNG considers its product to be an attractive alternative fuel for large fleet operations. The stability of natural gas supply and prices can help to insulate LNG users from price volatility and also could lead to significant fuel cost savings. LNG is a safe transportation fuel; it is not corrosive, is nontoxic and leaves no residue if spilled.

For more information, visit www.pivotallng.com.

About Pivotal LNG
A wholly owned subsidiary of AGL Resources (NYSE: GAS), Pivotal LNG is bringing liquefied natural gas to companies and industries throughout the United States through reliable, flexible and cost-effective solutions. For more information, visit www.pivotallng.com.

About AGL Resources
AGL Resources (NYSE: GAS) is an Atlanta-based energy services holding company with operations in natural gas distribution, retail operations, wholesale services, midstream operations and cargo shipping. As the nation's largest natural gas-only distributor based on customer count, AGL Resources serves approximately 4.5 million utility customers through its regulated distribution subsidiaries in seven states. The company also serves approximately 1.5 million retail customers through its SouthStar Energy Services joint venture and Nicor National, which markets natural gas and related home services. Other non-utility businesses include asset management for natural gas wholesale customers through Sequent Energy Management, ownership and operation of natural gas storage facilities, and ownership of Tropical Shipping, one of the largest containerized cargo carriers serving the Bahamas and Caribbean region. AGL Resources is a member of the S&P 500 Index. For more information, visit www.aglresources.com.


Sarah Stashak
Director, Investor Relations
Office: (404) 584-4577
Cell: (404) 433-9248

Annette Martinez
Director, External Relations
Office: (630) 388-2781
Cell: (630) 918-2321

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Source: AGL Resources via Thomson Reuters ONE

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