NORMAN, Okla. (AP) - Construction is under way on a compressed natural gas station that will fuel the city of Norman's 29 CNG vehicles.

The $1.65 million station will be the first such facility in Norman and is expected to open in October. Officials say the general public also will be able to purchase compressed natural gas there.

The project is being funded by a $945,000 federal grant through the American Recovery and Reinvestment Act and a $200,000 grant from the Association of Central Oklahoma Governments. The city is chipping in about $530,000.

Officials say the city could reap annual fuel savings of about $52,000 in the first year and $850,000 to $1.285 million in five years.

Norman now purchases compressed natural gas from the University of Oklahoma's fueling station.