Certarus Expands CNG Network into California

Certarus Expands California Operations with New CNG Supply Hub and Fleet Fueling Partnership

Certarus, a leading provider of mobile compressed natural gas (CNG) solutions and a wholly owned subsidiary of Superior Plus Corp. (TSX: SPB), has announced plans to expand its operations into California with the development of a new CNG supply hub near Bakersfield. The facility is expected to begin delivering natural gas in the first quarter of 2027 and will represent Certarus’ first permanent supply point in California.

The new hub is designed to improve access to natural gas for commercial, industrial, agricultural and transportation customers across a broad section of the state. Its strategic location will allow Certarus to serve businesses from Southern California through the Bay Area, including important agricultural and industrial centers in the Central Valley.

Alongside the infrastructure investment, Certarus has signed a memorandum of understanding (MOU) with Gazelle Transportation, California’s largest crude oil hauler, to introduce its Mobile CNG Fleet Fueling™ service at Gazelle’s operating facility. The companies are currently working toward a definitive agreement that would establish an on-site fueling arrangement for Gazelle’s natural gas-powered truck fleet.

The announcement represents an important development for California’s natural gas transportation market. By combining a permanent supply hub with mobile fueling capabilities, Certarus aims to make natural gas more accessible to businesses that face high energy expenses or lack direct access to pipeline infrastructure.

New CNG Hub to Support California’s Industrial and Agricultural Markets

The Bakersfield-area facility will serve as a central supply point for Certarus’ expanding California operations. Its location near major freight transportation routes, including Highway 99 and Interstate 5, provides access to several important commercial markets.

California has a large and diverse industrial economy that includes agricultural production, food processing, oil and gas operations, manufacturing, logistics and data infrastructure. These industries require dependable energy supplies to operate equipment, power vehicles and maintain production processes.

However, not every industrial or agricultural facility has access to natural gas through traditional pipeline networks. Some businesses operate in remote locations, while others face infrastructure limitations, pipeline capacity restrictions or lengthy connection timelines.

Certarus’ mobile CNG delivery model is intended to address these challenges. Instead of depending entirely on permanent pipeline connections, the company transports compressed natural gas to customer locations using specialized high-capacity trailers.

This approach allows businesses to access natural gas even when conventional pipeline infrastructure is unavailable or insufficient. It also provides an alternative energy supply for operations that need reliable fuel without waiting for major infrastructure projects.

Through the Bakersfield hub, Certarus expects to improve the efficiency of its transportation network and strengthen its ability to supply customers throughout California.

Dale Winger, President of Certarus, highlighted the importance of dependable and affordable energy for businesses operating in the state. He explained that California’s growers, processors, industrial facilities and data infrastructure operators provide products and services that are essential to the economy.

According to Winger, the new facility will expand access to natural gas solutions that can help customers manage energy expenses while benefiting from the company’s established safety procedures, reliable service and operational capabilities.

Strategic Partnership with Gazelle Transportation

A major part of the California expansion is Certarus’ proposed partnership with Gazelle Transportation.

Gazelle is a significant operator in California’s crude oil transportation industry and has already invested in converting a portion of its heavy-duty truck fleet from diesel to compressed natural gas.

Under the MOU, Certarus intends to deploy its Mobile CNG Fleet Fueling™ solution at Gazelle’s facility. The service will allow trucks to refuel directly at the company’s operating location rather than depending exclusively on public fueling stations.

The arrangement is expected to support Gazelle’s existing CNG operations while creating an initial customer base for Certarus’ new California supply hub.

The companies are working toward a definitive agreement to advance the project.

The partnership also demonstrates how mobile natural gas delivery can support transportation companies seeking to reduce fuel expenses and improve their environmental performance.

Gazelle has converted 36 trucks from diesel to CNG as part of its broader emissions reduction strategy. Its fleet consumes approximately 100,000 gallons of renewable natural gas (RNG) every month.

The renewable fuel used by Gazelle has an average carbon intensity of approximately negative 200 grams of carbon dioxide equivalent per megajoule (gCO2e/MJ). This figure reflects the carbon-intensity accounting associated with its renewable natural gas supply.

In 2025, Gazelle’s CNG fleet reportedly avoided nearly 27,000 metric tons of carbon emissions.

These results demonstrate the potential environmental benefits of replacing conventional diesel fuel with renewable natural gas in heavy-duty transportation applications.

Renewable Natural Gas Supports Fleet Decarbonization

Renewable natural gas is produced from organic waste sources, including agricultural waste, wastewater treatment facilities and landfill gas. After processing and upgrading, it can be used in natural gas vehicles and other compatible applications.

RNG offers transportation operators an opportunity to reduce the lifecycle greenhouse gas emissions associated with their fuel consumption. Depending on the feedstock, production process and carbon accounting methodology, certain RNG pathways can achieve very low or even negative carbon-intensity scores.

For companies operating large truck fleets, fuel selection is an important part of their environmental and financial strategies.

Diesel-powered heavy-duty vehicles are widely used because of their established infrastructure, operating range and ability to transport substantial loads. However, diesel prices and emissions requirements can create challenges for transportation businesses.

Natural gas provides an alternative for suitable vehicle applications. When supported by reliable fueling infrastructure, CNG-powered trucks can help operators diversify their fuel sources and potentially reduce operating expenses.

Gazelle’s experience illustrates how fleet conversion and renewable fuel adoption can contribute to emissions reduction objectives.

Ron Lallo, President and CEO of Gazelle Transportation, stated that improving the overall value delivered to customers remains central to the company’s business strategy.

He emphasized that adopting renewable natural gas has produced a significant positive impact on both the company’s financial performance and environmental objectives.

Lallo also highlighted the benefits of working with Certarus, explaining that on-site fueling can strengthen the advantages of RNG by reducing the need for trucks to travel elsewhere for fuel.

The flexibility of Certarus’ mobile fueling services is expected to help Gazelle accelerate its transition toward natural gas-powered transportation.

Mobile CNG Fleet Fueling™ Eliminates the Need for Permanent Stations

One of the key features of the Certarus-Gazelle collaboration is the Mobile CNG Fleet Fueling™ service.

This solution is designed for transportation companies that want to operate CNG-powered vehicles but do not have direct access to pipeline-connected fueling stations.

Traditional CNG fueling infrastructure can require significant investment in land, compression equipment, storage systems and permanent station construction. These requirements may create financial and operational barriers for companies considering fleet conversion.

Certarus’ mobile model offers a different approach.

Under the service arrangement, natural gas is compressed and transported to the customer’s facility using specialized equipment. The customer can then refuel vehicles on-site without having to construct a permanent fueling station or establish a direct pipeline connection.

The fully managed, behind-the-fence service is intended to provide several operational advantages:

  • Reduced infrastructure investment: Fleet operators can access CNG without constructing their own permanent fueling stations.
  • On-site fueling convenience: Trucks can refuel at their operating facilities, reducing the need for additional trips to public stations.
  • Operational flexibility: Mobile delivery equipment can support businesses in locations without suitable pipeline connections.
  • Fleet conversion support: Companies can introduce natural gas-powered vehicles without waiting for extensive fueling infrastructure development.
  • Fuel supply management: A managed delivery arrangement can help customers maintain access to the natural gas required for their operations.

For Gazelle, these capabilities could improve the efficiency of its existing natural gas fleet and support further vehicle conversions.

The model also complements the development of public and private CNG fueling stations throughout California, providing an additional option for businesses that need dedicated fueling arrangements.

California’s High Energy and Diesel Costs Create Market Opportunities

The expansion comes at a time when California businesses are dealing with some of the highest energy and transportation costs in the United States.

Industrial facilities, agricultural operators and logistics companies depend heavily on fuel and energy to maintain their daily operations. Higher energy expenses can affect production costs, transportation rates and the final prices paid by consumers.

According to the U.S. Energy Information Administration figures cited in the announcement, California’s on-highway diesel prices averaged more than $8.00 per gallon during October 2026.

The average price during the third quarter was also above $7.00 per gallon, approximately 25% higher than the national average.

These conditions create an incentive for fleet operators to evaluate alternative fuels that could provide more predictable operating expenses.

For transportation companies, fuel is one of the major components of operating costs. Even relatively small differences in the price per gallon can produce substantial financial effects when multiplied across large fleets and high monthly fuel consumption.

Natural gas can offer a competitive alternative in suitable applications, although actual savings depend on fuel prices, vehicle technology, maintenance requirements, infrastructure costs and operating conditions.

Certarus believes that its mobile supply model can help California businesses access natural gas without requiring major investments in pipeline infrastructure.

Dan Messina, Vice President of Growth and Strategy at Certarus, noted that diesel expenses influence the cost of many products and services purchased by California households.

He explained that when transportation operators and manufacturers transition to lower-cost natural gas, they may gain greater control over their operating budgets.

Messina also identified Gazelle as Certarus’ first fleet customer in California and emphasized that the Bakersfield facility will position the company to serve industrial customers across a wider geographic area.

Central Location Connects Southern California and the Bay Area

The location of the new hub is an important element of Certarus’ expansion strategy.

Situated near Bakersfield, the facility will have access to Highway 99 and Interstate 5, two major transportation corridors connecting important economic regions of California.

Highway 99 runs through the state’s Central Valley, an area known for its agricultural production, food processing facilities and industrial activity.

Interstate 5 provides a major north-south transportation connection between Southern California and the northern part of the state.

Together, these routes create opportunities for Certarus to distribute CNG to customers across multiple industries.

The company’s mobile delivery network is expected to serve:

  • Agricultural businesses requiring fuel for equipment and operations.
  • Food processors seeking dependable energy for industrial processes.
  • Oil and gas operators with energy requirements at production sites.
  • Manufacturing facilities using natural gas for process heating.
  • Transportation companies operating CNG-powered heavy-duty trucks.
  • Utility operators requiring flexible energy supply solutions.
  • Data infrastructure facilities seeking dependable energy alternatives.

The Central Valley is particularly important because many agricultural and industrial operations are located outside major urban pipeline networks.

By using mobile CNG transportation, Certarus can deliver natural gas to these facilities and provide an alternative to conventional energy arrangements.

The company’s strategy is to use one centrally positioned hub to serve multiple customer markets while maintaining flexibility in its delivery operations.

Existing Operations and Transportation Capabilities Support Expansion

Certarus plans to operate the California hub using its established North American mobile gas delivery platform.

The company says its existing infrastructure includes North America’s largest CNG transport trailer fleet, the industry’s largest portable compression fleet and integrated natural gas supply capabilities.

These assets are important because mobile natural gas distribution requires more than simply transporting fuel.

The process involves securing gas supply, compressing natural gas, loading it into specialized transportation equipment, delivering it safely and maintaining dependable service at customer locations.

Portable compression and transportation equipment allow Certarus to support customers across different industries and geographic areas.

The company’s established platform is expected to provide the operational foundation for the California expansion without requiring the development of an entirely new delivery model.

Gazelle’s existing relationship with Certarus also provides an initial opportunity to establish demand for the new facility.

Gazelle’s CNG fleet already supports Certarus’ CNG and RNG projects in California. Its experience in operating natural gas-powered trucks makes it a relevant partner for the company’s transportation-focused expansion.

In addition, Superior Plus Propane is taking delivery of its first CNG trucks in California. These vehicles are expected to refuel on-site through the Gazelle deployment.

This development could strengthen cooperation between Certarus, Gazelle and Superior Plus while supporting the wider use of natural gas-powered vehicles in the state.

Supporting the Transition Toward Alternative Transportation Fuels

The California expansion reflects a broader shift in the transportation and industrial sectors toward alternative energy sources.

Businesses are increasingly evaluating fuel options that can help manage operating costs, improve energy security and meet environmental objectives.

While battery-electric vehicles are attracting significant attention, natural gas and renewable natural gas continue to serve specific heavy-duty transportation and industrial applications.

CNG can be particularly relevant for fleets that operate predictable routes, return regularly to centralized facilities and have access to dedicated fueling arrangements.

Mobile fueling services can make these applications more practical by reducing the need for permanent infrastructure.

RNG adds another dimension by offering a renewable fuel pathway that can utilize waste-derived gas.

However, the effectiveness of any alternative fuel strategy depends on individual operating requirements, available supply, infrastructure and overall economics.

Certarus’ approach focuses on providing customers with access to natural gas through a combination of centralized supply infrastructure and mobile delivery services.

The Bakersfield hub is expected to strengthen that model in California and create opportunities for additional industrial and transportation customers.

First California Hub Expected to Begin Operations in 2027

Certarus’ new CNG supply hub near Bakersfield is expected to begin gas flow in the first quarter of 2027.

The facility will mark the company’s first permanent supply point in California and provide a foundation for expanding its mobile natural gas services throughout the state.

The MOU with Gazelle Transportation is an important part of the launch strategy because it establishes a potential fleet fueling customer at the beginning of the hub’s operations.

The planned Mobile CNG Fleet Fueling™ deployment is expected to support Gazelle’s existing 36 CNG trucks while creating opportunities for further fleet conversion.

Beyond transportation, Certarus intends to serve customers in agriculture, food processing, manufacturing, utilities, oil and gas, and other energy-intensive industries.

California’s high diesel and energy costs, combined with the need for flexible fuel delivery, could create opportunities for mobile natural gas solutions.

The expansion also demonstrates how established natural gas transportation infrastructure can support renewable natural gas adoption and alternative fuel strategies.

As the company moves toward the planned 2027 launch, the Bakersfield hub will be an important step in strengthening Certarus’ presence in the western United States and improving access to CNG and RNG for California businesses.

By combining its mobile delivery capabilities with a strategic supply location and a partnership with an experienced transportation operator, Certarus aims to provide customers with another option for managing energy costs, maintaining operational reliability and supporting emissions reduction initiatives.

Source Link:https://www.businesswire.com/