GE Capital Canada partnering with Gaz Métro Transport Solutions and Shell to advance trucking industry use of natural gas
10 July 2015
GE Capital, Canada and Gaz Métro Transport Solutions (GMTS), a subsidiary of Gaz Métro, signed a strategic agreement that will facilitate the trucking industry’s adoption of natural gas as a fuel in Eastern Canada. Under this agreement, fleet operators will work with GMTS for natural gas supply and purchase and, separately, with GE Capital to secure loans or leases for natural gas vehicles (NGVs). NGVs that are eligible under this agreement use either compressed natural gas (CNG) or liquefied natural gas (LNG).
Separately, GE Capital, Canada also announced the signing of a commercial agreement with Shell Canada Products with a view to facilitate the trucking industry’s adoption in Canada of liquefied natural gas (LNG). Under this agreement, GE Capital and Shell will work together to reduce monthly payments for truck fleets that lease natural gas vehicles (NGVs). Specifically, fleets owners can sign natural gas fueling contracts with Shell and, separately, secure leases for LNG vehicles with GE Capital. The agreement covers equipment that will purchase fuel from Shell’s facilities.
As someone with nearly a decade of experience in the transportation industry, I understand how critical it is for fleet operators to reduce their fuel costs. To remain competitive, they need to cut 3%-5% annually just to keep up with the market. Transitioning to natural gas is a smart way to diversify their fuel portfolios and reduce those costs. Through this agreement, we’re giving trucking company leaders the financial motivation to make the shift from diesel to nat-gas.—Véronique Haché, strategic initiative leader for natural gas vehicles at GE Capital
In 2011, GMTS launched the Blue Road, is the first LNG fueling station network in Canada. The Blue Road currently includes five fueling stations in total, including three public stations in Lévis (QC), Cornwall (ON) and Sainte-Julie (QC). A fourth station to be open in Rivière-du-Loup (QC) over the next months will continue the route towards Gaspesie and the Eastern provinces.
Gaz Métro Transport Solutions (GMTS), an affiliate of Gaz Métro, was created in 2010 to encourage the transportation industry to switch to natural gas. With more than $6 billion in assets, Gaz Métro is the largest natural gas distribution company in Québec, where its network of more than 10,000 km of underground pipelines serves more than 300 municipalities and more than 195,000 customers.
GE Capital has been providing wholesale and retail financing to Canada’s commercial trucking sector for 35 years. Since its creation in 2010, GMTS has become a leader in the alternative fuels space in Québec, both for the advisory role it provides to companies and for its deployment of natural gas refueling stations.