UPS to Expand Natural Gas Footprint

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

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 reportedly benefited from lower fuel prices compared to imported petroleum.

"The UPS strategy is both environmentally friendly and economically viable," said David Abney, UPS chief operating officer. "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. UPS began adding LNG tractors to its delivery fleet in 2002. 

"Building these fueling stations is a solid future investment for UPS," said Abney. "By 2017, our goal is to reach one billion miles driven by our alternative fuel and advanced technology fleet. To accomplish this goal the company must continue to innovate and help pave the way toward more sustainable transportation solutions."