UPS (ticker: UPS) plans to purchase approximately 700 liquefied natural gas (LNG) vehicles and build four refueling stations by the end of 2014. Upon completion, UPS says they will have the most extensive private LNG fleet in the U.S.
The four fueling stations require an initial investment of more than $18 million and will be located in Knoxville, Nashville and Memphis, Tennessee, and Dallas, Texas. UPS says it has more than 1,000 natural gas vehicles on the road today. Since 2000, the fleet powered by alternative fuels and technologies has driven more than 295 million miles.
Below are a few of the benefits of expanding LNG operations, as cited by UPS:
- Lower fuel prices compared to imported petroleum (30 to 40% lower today)
- 25% less CO2 emissions (U.S. Energy Administration)
- Growing domestic supply, insulated from market volatility
- LNG does not compromise tractor’s abilities, fuel economy or drivability, and significantly reduces greenhouse gases
- LNG tractors have 600-mile range and no route limitations
- Viability of LNG as a “bridge” fuel toward energy independence from fossil fuels for heavy-weight trucks
U.S. Natural Gas Production
U.S. Natural Gas Consumption
Historical U.S. Henry Hub Natural Gas Prices
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