SOURCE: Zeus Development Corporation

Zeus Development Corporation

May 31, 2011 09:00 ET

Zeus Survey Highlights Growing LNG-Powered Fleets

HOUSTON, TX--(Marketwire - May 31, 2011) - Zeus Development Corporation has published a survey of Northern America LNG-fueled fleets identifying nearly 4,000 over-the-road vehicles. The survey profiles 27 LNG-powered fleets in various stages of development, including UPS, Heckmann Corp., Waste Management, CR England and others. The survey also provides a data set of detailed information on make, model, engine type and engine technologies. 36 fueling stations are identified as well. Additionally, summary charts identifying purpose of fleets, fuel providers, engine make and vehicle make are included.

Waste Management, operator of several hundred LNG-fueled refuse haulers and other fleet operators like Robert Transport, UPS and others have jumped into backing LNG-fueled operations as a fuel-cost saving, environmentally friendly alternative to diesel-powered operations.

"Some fleets are now issuing orders for hundreds of vehicles at a time. World-scale LNG traders were once hesitant to participate in downstream ventures due to risk and the relatively small size of markets," said Charlie Pawlik, analyst, Zeus Development Corporation. "However, this is changing as more recognize the potential growth to be achieved should a sector of the transportation market convert to LNG fuel."

One example is Distrigas of Massachusettes, which recently announced that it is fueling the newly built Enviro Express fueling station in Connecticut. Royal Dutch Shell and El Paso Corp have also pursued LNG transportation fuel markets.

The role of government intervention in affecting the growth of the LNG-powered market is also an important consideration.

"Southeast LNG and others view spotty regulations as a hindrance to implementing LNG-fueled transportation," Pawlik added. "The cost differences between LNG and diesel-powered vehicles are large enough that the participants are looking for predictability with respect to subsidies in order to make what are significant incremental investments."

Nevertheless, investment in over-the-road vehicles powered by LNG has grown at a rapid pace as fleets look to lessen operating costs and to take advantage of a growing network of fueling stations.

Purchase the survey in Excel (.xls) format, and corresponding analysis article titled "Global LNG Traders Finally Entering Transportation Fuel Markets" online at http://www.zeuslibrary.com/LNGFuelDB or by contacting Zeus (subscriptions@zeuslibrary.com or 713-952-9500).

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