Indianapolis Plants to Be Outfitted for Tanker Loading
In Support of Five Tractor Fueling Stations at UPS Hubs
Kinetrex Energy is investing some $14 million to fit two Indianapolis area natural gas liquefaction plants with LNG tanker loading docks. Fuel from the two facilities will be trucked to supply five LNG fueling stations being built at UPS distribution hubs in Indiana, Illinois, Ohio and Missouri, Kinetrex says.
The announcement last week followed an Indiana Utility Regulatory Commission’s ruling allowing Kinetrex, which is a subsidiary of Citizens Energy Group, to operate as an unregulated business, “giving it the ability to compete with other fuel providers in the U.S.”
The deal with UPS “puts Kinetrex Energy one step closer to becoming the Midwest’s leading LNG provider,” Citizens Energy president and CEO Carey Lykins said in a release.
Ample Gas and Storage for It
Each of the two liquefaction plants – one on the north side of Indianapolis and one on the south– already boasts 12 million gallons of LNG storage, says Kinetrex VP Craig Moore. UPS will send six to eight tankers a day, offloading 60,000 to 80,000 gallons of fuel, he told F&F, beginning in March.
Moore noted too that natural gas is available from now fewer than four interstate pipelines that traverse the area, with the possibility of a fifth.
UPS recently expanded on a major LNG commitment made at ACT Expo this past June in Washington, D.C., outlining plans for an investment of some $50 million to build nine more LNG fueling stations for a total of 13, all to be operational by the end of 2014, supporting the operation of approximately 1,000 UPS trucks (F&F, October 14).
The Governor and the Mayor
“By 2017, UPS plans to reach one billion miles driven by our alternative fuels and advanced technology fleet,” UPS Ohio Valley district president Zachary Scott said in the Kinetrex announcement. “LNG performs well on our high-mileage routes and is becoming a reliable alternative to traditional diesel with both environmental and economic benefits.”
Indiana Governor Mike Pence and Indianapolis Mayor Greg Ballard attended the Kinetrex LNG announcement ceremony on October 22.
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Source: Kinetrex Energy with Fleets & Fuels follow-up