Natural gas stations plan is scrapped.

A plan to build 10 compressed natural gas stations in Philadelphia was shelved by the joint venture that created it after the first set of pumps failed to make a profit.

American Refining Group of West Conshohocken last year entered into an agreement with PAF Fueling Systems Inc. of Bear, Del.

Carol McHoney, co-owner of PAF with Steve Cain, said their business plans hinged in part on a federal study that estimated the Delaware Valley could be home to 2,600 vehicles powered on the alternative and cleaner fuel.

"I think once people understand that it's a viable fuel, then they'll like it," McHoney said. "But it's very frustrating."

The primary users of the stations were to have been the city of Philadelphia and the Philadelphia Gas Works, but she said the respective fleets have never used natural gas as much as was projected. The …