14.07.2010 22:36:00

Questar and Applied LNG Technologies to Explore New Liquefied Natural Gas Projects

Questar Corporation (NYSE: STR) today announced that its subsidiary Questar Transportation Services Company (QTS) and Applied LNG Technologies, LLC (ALT) have signed a memorandum of understanding (MOU) establishing a framework for the companies to jointly explore new market opportunities for Rockies liquefied natural gas (LNG).

QTS, a subsidiary of Salt Lake City-based Questar Corporation, provides natural gas midstream field services, including gas gathering and processing. Headquartered in California, ALT, a subsidiary of Applied Natural Gas Fuels, Inc., is a producer and distributor of transportation- and industrial-grade LNG on the West Coast and in the Southwest.

Under the MOU announced today, QTS and ALT intend to accelerate market expansion of LNG products and services in the Rockies, primarily in the transportation and manufacturing sectors. The business framework is designed to increase net-to-the-well prices for Rockies producers supplying gas to this new market.

"The MOU sets the stage for ALT and QTS to jointly work with Rockies gas producers to develop LNG projects to serve large fleet owners and industrial users with a domestically produced, more environmentally friendly fuel that costs less than gasoline or diesel fuels. We hope to build on the leading role our affiliate, Questar Gas, has developed expanding CNG refueling capability in Utah,” said R. Allan Bradley, Executive Vice President of Questar Corporation.

"The agreement signed today by QTS and ALT establishes a promising collaboration between two long-time natural gas providers,” added Cem Hacioglu, President and CEO of ALT. "It will help us meet the growing demand from our nation’s large trucking fleets, industrial users of propane and oil, and intermodal transportation and rail companies for proven alternatives to traditional fuels that are also less expensive and produce fewer harmful emissions.”

About Questar Corporation:

Questar Corporation is a natural gas-focused energy company. Its subsidiaries include:

  • Wexpro Company, which develops and produces natural gas on behalf of Questar Gas Company’s utility customers;
  • Questar Pipeline Company, which operates interstate natural gas pipelines and storage facilities and provides other energy services in the western United States; and
  • Questar Gas Company, a regulated natural gas distribution utility serving over 900,000 homes and businesses in Utah, Wyoming, and Idaho.

About Applied LNG Technologies, LLC:

Applied LNG Technologies, LLC (ALT) produces and markets liquefied natural gas (LNG). ALT owns a production facility located in Topock, Arizona, currently producing over 2 million gallons per month of vehicle-grade LNG. Along with that facility and other LNG production facilities, ALT has the capability of supplying the Western and Southwestern United States with commercial quantities of vehicle-grade LNG fuel. ALT provides LNG and CNG product and delivery systems and executes turnkey fuel solutions that include equipment leasing, station installations, safety and training, natural gas production, low BTU gas processing, temporary fueling stations, and LNG and CNG consulting services. ALT’s customer base includes large municipal and transit fleets, various refuse companies, major ports and other commercial trucking fleets. The Company is focused on meeting the growing demand for alternative fuels in the domestic market. The Company's web site is www.altlng.com. ALT is wholly owned by Applied Natural Gas Fuels, Inc. (OTCBB: AGAS).

Forward-Looking Statements Disclosure

This press release may contain "forward-looking statements” within the meaning of the federal securities laws. In this context, forward-looking statements may address the Company’s expected future business and financial performance, and often contain words such as "anticipates,” "believes,” "estimates,” "expects,” "intends,” "plans,” "seeks,” "will,” and other terms with similar meaning. These forward-looking statements by their nature address matters that are, to different degrees, uncertain. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can provide no assurances that these assumptions will prove to be correct. In connection with the "safe harbor” provisions of the federal securities laws, including the Private Securities Litigation Reform Act of 1995, important factors that, among others, could cause or result in actual results and experience to differ materially from the Company’s anticipated results, projections, or other expectations are disclosed in the Company’s filings with the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified by such cautionary statements, risks, and uncertainties, and by reference to the underlying assumptions.

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