UPS Plans LNG Vehicle Purchases, Refueling Stations

UPS Plans LNG Vehicle Purchases, Refueling Stations

A UPS LNG vehicle being fueled.

UPS has plans to purchase about 700 liquefied natural gas vehicles and build four refueling stations by the end of 2014.

“LNG will be a viable alternative transportation fuel for UPS in the next decade as a bridge between traditional fossil fuels and emerging renewable alternative fuels and technologies that are not quite ready for broad-based long-term commercial deployment,” said Scott Davis, UPS chairman and CEO, in a written statement.

New UPS-built fueling stations in Knoxville, Nashville and Memphis in Tennessee, as well as Dallas, will serve its heavyweight rigs traveling into adjacent states. With the addition of LNG fueling stations, UPS will also add LNG trucks on routes from Dallas, Houston and San Antonio in Texas to further extend its territory.

An initial investment of more than $18 million to build the fueling stations will be supported by the purchase of these 700 LNG tractors and continued expansion of the natural gas fleet in the U.S., the logistics company said.