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07-06-2012 22:41:00

Shell Plans to Supply LNG for Heavy-Duty Trucks at U.S. Fuel Stations

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By Isabel Ordonez

Royal Dutch Shell PLC (RDSA, RDSB, RDSA.LN, RDSB.LN) said Thursday it signed a preliminary agreement to supply liquefied natural gas, or LNG, for heavy-duty trucks at 100 fueling stations across the U.S. starting in 2013.

The agreement signed with TravelCenters of America LLC (TA), the largest full-service truck stop chain in the U.S., includes constructing more than 200 LNG fuel lanes at about 100 sites throughout the U.S. interstate highway system, Shell said in a press release. If a final agreement is reached, the first of the LNG fuel lanes is expected to become operational in 2013, the company added.

"This potential alliance with TA would enable Shell to deliver LNG fuel to customers who want a competitively priced fuel option to help them meet increasingly stringent air quality emission standards," said Shell fuels marketing executive Elen Phillips.

Demand for alternative fuels for heavy-duty road transport trucks is growing in part because of the promise of lower fuel costs and improved local air quality from reduced emissions, the company said.

Last year, Shell announced it would sell LNG to heavy-duty trucks at select Flying J truck stops in Alberta, Canada. The first LNG retail plaza in Calgary is expected to open this year, the company said.

Write to Isabel Ordonez at isabel.ordonez@dowjones.com

(END) Dow Jones Newswires

June 07, 2012 16:41 ET (20:41 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

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