Trucks & Trains Turn Toward LNG to Lower Costs

Just as the power industry turned toward lower priced natural gas and away from dirtier coal, there are signs that trucks and trains are looking to lower priced liquefied natural gas (LNG) to replace diesel-powered vehicles, but there are challenges.

3 minute read

April 29, 2013, 11:00 AM PDT

By Irvin Dawid


UPS LNG Truck

UPS

Diane Cardwell and Clifford Krauss report that United Parcel Service will expand the number of their long-haul, 18-wheelers that are powered with LNG from 112 to 800, making it the "(m)ost extensive private LNG fleet in U.S. by end of 2014" according to their fact sheet. The benefits are substantial - to the company, the country, and the environment.

It is cheaper, saving truckers as much as $1.50 a gallon, and it burns cleaner, making it easier to meet emissions standards. The move could also cut the country’s oil import bill. The domestic fuel also provides some insulation from the volatile geopolitics that can drive up petroleum prices.

The two main challenges are overcoming the higher price for the vehicles - up to twice as much as a diesel-powered truck, and the shortage of refueling stations - a problem that most alternative-fuel vehicles face. UPS is up to the challenge though.

Transport Topics reports that UPS will "build four refueling stations by the end of next year."

LNG will be a viable alternative transportation fuel for UPS in the next decade as a bridge between traditional fossil fuels and emerging renewable alternative fuels and technologies that are not quite ready for broad-based long-term commercial deployment,” Chairman and CEO Scott Davis said.

The long-haul LNG trucks should not be confused with UPS's growing fleet of over 1,000 compressed natural gas (CNG) trucks that is uses for local deliveries.

Natural gas has a long ways to go before it dents diesel's near monopoly hold on freight transportation fuel, according to Cardwell and Krauss.

Vehicle use of natural gas in the United States is still negligible but it has been growing. Among fleets whose vehicles travel shorter routes, like transit buses, refuse haulers and delivery trucks, use of compressed natural gas is much further along. Last year, more than half of newly purchased garbage trucks ran on compressed natural gas.

Nathan Vakerklippe of The Globe and Mail reports on efforts to replace diesel with LNG in Canada - but not just for trucks - for trains and ferries too.

Canadian National Railway Co. is running tests with two LNG-powered locomotives and British Columbia Ferry Services Inc. is seriously considering installing LNG engines in new vessels.

Biggest challenge: refueling infrastructure. “Ultimately (LNG) can displace 100 per cent (of diesel),” said Dick Brown, chief executive officer of Ferus LNG Inc. “What it needs is the infrastructure to be able to do that.”   

Russell Gold writes in The Wall Street Journal that "BNSF Railway Co., one of the biggest U.S. consumers of diesel fuel, plans this year to test using natural gas to power its locomotives instead."

If successful, the experiment could weaken oil's dominance as a transportation fuel and provide a new outlet for the glut of cheap natural gas in North America.

Correspondent's note: Link to WSJ article should allow access for non-subscribers through May 5.

Monday, April 22, 2013 in The New York Times - Energy & Environment

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

Close-up of white panel at top of school bus with "100% electric" black text.

Driving Equity and Clean Air: California Invests in Greener School Transportation

California has awarded $500 million to fund 1,000 zero-emission school buses and chargers for educational agencies as part of its effort to reduce pollution, improve student health, and accelerate the transition to clean transportation.

April 30 - California Air Resources Board

Aerial view of Freeway Park cap park over I-5 interstate freeway in Seattle, Washington at night.

Congress Moves to End Reconnecting Communities and Related Grants

The House Transportation and Infrastructure Committee moved to rescind funding for the Neighborhood Equity and Access program, which funds highway removals, freeway caps, transit projects, pedestrian infrastructure, and more.

April 30 - Streetsblog USA

"No Thru Traffic - Open Streets Restaurants" sign in New York City during Covid-19 pandemic.

From Throughway to Public Space: Taking Back the American Street

How the Covid-19 pandemic taught us new ways to reclaim city streets from cars.

April 30 - Next City