Last week, Questar Fueling Company, an affiliate of the natural gas-focused energy firm Questar Corporation (STR), announced the opening of a compressed natural gas (CNG) fueling station in a strategic position in Kansas City, KS.
The new fueling station will serve medium and heavy-duty trucks and light-duty natural gas vehicles. The station has six high-speed fueling lanes for the trucking fleet. Management at Questar mentioned that infrastructural development of CNG fueling stations allows the company to provide reliable and low-cost natural gas for transportation fleet operators.
This is the second CNG station built by the company in Kansas this year. Questar Fueling had opened the first one in April in Topeka, which served trucking fleet of companies like Frito-Lay, Dart Transit and others.
CNG is reasonably priced when compared with its oil-fuel counterpart. Usage of CNG not only reduces the nation’s dependency on imported oil but also results in a cleaner fuel for vehicles, thus proving to be more economical and eco-friendly.
As the U.S. has attained the position of the largest natural gas producer in the world, more natural-gas powered trucking fleet can be expected, leading to further need of such CNG fueling stations.
Salt Lake City, UT-based Questar Corporation is a natural gas-focused energy company with three principal subsidiaries, Wexpro Company, Questar Pipeline and Questar Gas Company.
Questar, after the QEP Resources’ (QEP) spin-off, has transformed itself into a natural gas-operated energy company, which focuses exclusively on exploring natural gas resources while serving customers domestically and worldwide. Its sole focus on the natural gas market and long-term contracts, along with an efficient management team work in favor of Questar.
However, we remain cautious about the present volatility in natural gas prices that is likely to dampen Questar’s near-term growth prospects. As such, other players from the utilities sector like AGL Resources Inc. (GAS) and New Jersey Resources Corp. (NJR) are better investment options at present as they seem better positioned in terms of earnings growth.
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