Shell transitioning Houston truck fleet from diesel to LNG

Royal Dutch Shell is switching its trucking fleet to more liquefied natural gas-fueled vehicles in Houston and Louisiana as more companies increasingly move away from dirtier diesel fuel.

The use of LNG and compressed natural gas -- another new CNG fueling station opened Thursday in Houston -- in commercial vehicles has rapidly expanded because of the nation's cheap and bountiful supply of natural gas.

Shell said Thursday it partnered with Miami-based Ryder transportation company for 15 new, heavy-duty LNG trucks to support its oil and gas logistics operations in Houston and Lafayette, Louisiana. The 15 new trucks will replace diesel-fueled Shell vehicles. Shell will provide the LNG fuel.

"LNG can be a good choice for truck owners and more are making the switch to LNG," said Dan Flynn, Shell vice president for logistics, in a prepared statement, adding that Shell's LNG is a cleaner fuel that meets emissions regulations without the need for treatment systems used in diesel engines.

As an alternative to LNG vehicles, the 15th CNG fueling station in Houston opened Thursday. The new filling station at Pinto Business Park on Fallbrook Drive just west of Interstate 45 in North Houston is the third station in Houston opened by Freedom CNG.

The new CNG station will fuel the Metropolitan Transit Authority of Harris County's new fleet of 50 CNG-fueled, public transportation buses.

"When it comes to encouraging the adoption of compressed natural gas for local fleet vehicles, we've barely scratched the surface," said Bill Winters, the managing member of Freedom CNG, in the announcement. "There's a strong argument to be made for compressed natural gas both from an environmental and economic point of view."

Texas ranks third in the nation with 79 public compressed natural gas fueling stations, trailing only California and Oklahoma, according to Freedom CNG, citing U.S. Department of Energy data.

Ryder System, Shell Oil Enter Agreement for 15 LNG Stations
http://www.streetinsider.com/Corporate+News/Ryder+System+(R),+Shell+Oil+Enter+Agreement+for+15+LNG+Stations/11250511.html
January 27, 2016

Ryder System, Inc. (NYSE: R) announced that Shell Oil Company - one of America’s leading oil and natural gas producers, gasoline and natural gas marketers, and petrochemical manufacturers - signed an agreement for 15 liquefied natural gas (LNG) heavy-duty vehicles supporting oil and gas logistics operations in Lafayette, La. and Houston, Texas.

Shell has relied on Ryder for logistics solutions for more than 10 years. As Shell’s logistics provider, Ryder currently manages road transportation for Shell’s freight hauling activities across its U.S. exploration and production (E&P) activities, including a dedicated fleet that directly supports its Gulf of Mexico operations. The new 15 LNG fueled vehicles will replace Ryder diesel-powered vehicles in the existing fleet and will be serviced out of Ryder’s Lafayette, La. facility, which is being engineered to meet the unique compliance requirements for natural gas. As part of this initiative, Ryder has signed a five-year fuel agreement with Shell which will provide LNG fuel for the dedicated natural gas fleet.

The Shell sea port and cross state routes are an application ideally suited for natural gas vehicles. Ryder worked with Shell to develop a customized truck specification that was weight-sensitive to maximize freight revenue, while assuring durability and operability in the field.

“We are excited to work with Ryder to transfer diesel vehicles to LNG. LNG can be a good choice for truck owners and more are making the switch to LNG,” said Dan Flynn, Shell Vice President Logistics. “It is great to see Ryder’s drive for Shell LNG, a clean burning fuel that meets emissions regulations without the need for after treatment systems used in diesel engines. Ryder has been extremely responsive to our service needs, which makes us confident about our continued relationship. Ryder’s help was critical to provide the logistics expertise, knowledge, and know-how needed to ensure that the fleet was operating at its best.”

“It has truly been a pleasure to have Shell as a loyal Ryder customer for more than 10 years,” said John Diez, President of Ryder Dedicated Transportation Solutions. “With Ryder as its dedicated transportation partner, Shell can continue to count on having a reliable fleet ready to maintain the excellent reputation they’ve worked very hard to earn. We are honored that Shell trusts Ryder to represent their brand on the road and with their customers, and that we can help them improve the sustainability and efficiency of their fleet.”

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