Gulf Oil LP, a national branded supplier of motor fuels throughout the United States and its territories, has deployed 34 transport trucks that run on liquefied natural gas (LNG). In addition, Gulf will soon be supplying and distributing LNG to customers in the transportation sector and other interested bulk users.
Gulf’s move into the LNG marketplace is part of the company’s ongoing strategy to diversify its energy offerings and provide the marketplace with a fuel alternative that is cheaper, cleaner, and domestic.
We intend to convert more of our fleet and to supply and distribute LNG to our customers. The economic benefits are remarkable. For example, fleets that have more than 10 vehicles that use at least 20,000 gallons per year in a ‘return-to-base operation’ can expect to lock in an after-tax internal rate of return in the 20 to 35 percent range. For our own fleet, we locked in a five year discount against diesel costs to guarantee a significant return on investment.—Laura Scott, Senior Vice President of New Business Ventures
Gulf’s new vehicles are Peterbilt 386 liquefied natural gas trucks incorporating Westport Heavy Duty 15 liter high-pressure direct injection (HPDI) systems. Gulf will assist its fleet customers in all aspects of conversion, including vehicle selection, acquisition, hedging, operations, and regulatory requirements.