Calor Gas has expanded the Liquefied Natural Gas side of its business with the acquisition of Chive Fuels.

With its background and distribution experience in Liquefied Petroleum Gas (LPG), Calor Gas now aims to build on its network and provide large-scale off-gas grid energy users the opportunity to use LNG where a natural gas grid connection is not available. According to the company, this will typically cut the users’ carbon emissions by around 30% and reduce their energy costs in the process.

Calor Gas claims that LNG makes up 25% of all UK gas demand and will remain abundantly available for the foreseeable future. Its use as a transport fuel for heavy lorries and trucks is also purportedly set to grow with the government's recent move to encourage the development of LNG vehicles, with their announcement of a 10-year duty differential freeze on gaseous fuels.

Using LNG as a road fuel can reduce CO2 emissions by up to 30%, according to Calor Gas, and particulates by as much as 90% compared to diesel. Therefore, it could potentially help the UK significantly in meeting its carbon reduction targets.

Managing director Stephen Rennie said: "We are extremely excited and proud of Calor's investment in the LNG market in the UK. Our shareholder SHV has already demonstrated its own commitment to the development of LNG applications across the world – both for industrial end users and fleet operators. As a result of this, a large number of British companies will be able to benefit from the significant economic and environmental advantages of switching to clean, lower-carbon LNG."