UPS Tuesday announced plans to invest approximately $50 million to build an additional nine liquefied natural gas (LNG) fueling stations, bringing the total number of stations to 13. Four were announced in April, and all should be operational by the end of 2014.

“The UPS strategy is both environmentally friendly and economically viable. LNG is becoming more readily available, plus it’s more insulated from market volatilities than diesel fuel.”

The enhanced LNG fueling infrastructure will support the operation of approximately 1,000 UPS LNG tractors that will displace more than 24 million gallons of diesel fuel annually. UPS has used LNG vehicles for more than a decade and has benefited from lower fuel prices compared to imported petroleum.

“The natural gas industry needs companies to commit to using natural gas to help establish a reliable alternative to traditional fuel, and that is just what UPS is doing,” said David Abney, UPS chief operating officer. “The UPS strategy is both environmentally friendly and economically viable. LNG is becoming more readily available, plus it’s more insulated from market volatilities than diesel fuel.”

The expansion will include on-site fueling stations in Florida, Illinois, Indiana, Mississippi, Missouri, Ohio, Pennsylvania and Texas. Construction is already underway at previously-announced UPS facilities in Tennessee and Texas.

Currently, UPS operates LNG tractors in Las Vegas, Nev., Phoenix, Ariz., Beaver and Salt Lake City, Utah, and, Ontario, Calif. UPS began using LNG tractors in its delivery fleet in 2002.

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10/14/2013