Westport Innovations signs gas-supply deal with China's ENN

Thu Feb 28, 2013 9:19am EST

Feb 28 (Reuters) - Canada's Westport Innovations Inc , a developer of natural gas-powered engines for trucks, said it would work with a Chinese company, ENN Group, to build gas stations to boost use of the fuel in North America and other parts of the world.

ENN, which boasts an extensive natural gas network in China, will also look to adopt Westport engines in its Chinese truck fleet, Westport said in a statement.

"Westport and ENN (will) look to partner for opportunities across trucks, rail, marine and mining applications," Westport said on Thursday.

Privately held ENN Group supplies natural gas for transport operations in China through a 17,000 km (10,500 mile) gas pipeline network and 238 gas stations in 59 cities.

Westport Chief Executive David Demers said the agreement was aimed at increasing the number of vehicles, fleets and infrastructure run on natural gas.

The two companies plan to build liquefaction plants in North America and fuel stations there as well as in Asia, Europe, Australia and Africa.

Westport produces its gas-powered engines in deals with manufacturers such as Cummins Westport, a joint venture with U.S. engine maker Cummins Inc formed in 2001.

It has said it expects to start the production this year of the Cummins Westport ISX12 G, a 12-litre heavy-duty natural gas engine for long-haul trucks.