Aggressive Plans to Extend LNG-Fueled Operations

• Most extensive private LNG fleet in U.S. by end of 2014: 
  • UPS to purchase 700 LNG tractors
  • UPS to build 4 new fueling stations in Knoxville, Nashville and Memphis, Tenn., and Dallas, Texas (initial investment 18+ million)
• UPS to have LNG fueling operations across 10 states.

How LNG Technology Works

The LNG technology uses natural gas as the primary fuel, along with a small amount of diesel as a combustible element to ignite the natural gas. Small quantities of diesel fuel and large quantities of natural gas are delivered at high pressure to the combustion chamber.

The LNG tractors utilize two 70-gallon LNG tanks and one 20-gallon diesel tank. The technology is preferable for heavy-duty applications compared to other fuels like compressed natural gas because LNG as a fuel is less cumbersome to transport. As a fuel, LNG is very dense, providing a large amount of energy for the amount of space it occupies. This makes LNG an excellent potential fuel for large trucks that need to travel a long distance before refueling.

Current UPS LNG Operations (2013)

• Operate from LNG fueling stations in Las Vegas, Nev.; Phoenix, Ariz., and Beaver and Salt Lake City, Utah. We also have a fueling station on UPS property in Ontario, California. 
• Operate approximately 112 LNG tractors today.
• LNG vehicle drivers need certification on fueling process and a 30-minute training session is required. Technicians undergo three and a half days of new training at UPS facilities as well.
• LNG tractors in its fleet for more than a decade.
• First (in package delivery industry) to introduce alternative fuel tractors into its fleet more than a decade ago.

LNG Benefits

• 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
• LNG vehicles meet UPS criteria to deploy alternative fuel technologies:
  • must be economically viable in terms of initial purchase price, maintenance costs and reliability and adapt to our fleet use characteristics,
  • must have a reliable fueling infrastructure,
  • supply of vehicles and parts must be predictable,
  • there is a measurable improvement in emissions, fuel savings and/or environmental benefit, and,
  • it’s safe.

How LNG Technology Works

The LNG technology uses natural gas as the primary fuel, along with a small amount of diesel as a combustible element to ignite the natural gas. Small quantities of diesel fuel and large quantities of natural gas are delivered at high pressure to the combustion chamber.

The LNG tractors utilize two 70-gallon LNG tanks and one 20-gallon diesel tank. The technology is preferable for heavy-duty applications compared to other fuels like compressed natural gas because LNG as a fuel is less cumbersome to transport. As a fuel, LNG is very dense, providing a large amount of energy for the amount of space it occupies. This makes LNG an excellent potential fuel for large trucks that need to travel a long distance before refueling.  

UPS's Engagement with the Clean Cities Program and the LNG Corridor

UPS is working with the U.S. Department of Energy's Clean Cities program to advance LNGs in the marketplace. Launched in 2009, the program's objective is to encourage the reduction of foreign petroleum usage and reduce greenhouse emissions. Part of that mandate is improving America's investment in infrastructure. The program's support assisted in the purchase of LNGs and the construction of several fueling stations. The LNG corridor stretches from Ontario California to Nevada and Utah. UPS has an LNG fueling station in Ontario, California, which was built in 1997. In 2011, UPS deployed new LNGs to Clean Energy's Las Vegas fueling station.