NEW YORK, March 27 Volvo Trucks will
collaborate with oil major Royal Dutch Shell to use
liquefied natural gas (LNG) as a transport fuel focused on North
America and Europe, the two companies said on Wednesday.
The loose agreement aimed at powering more of Volvo's
heavy-duty commercial trucks with LNG comes as production of
natural gas hits record highs in the United States, prompting a
string of deals between engine makers and fuel providers.
Natural gas offers savings at the pump versus diesel and
gasoline in the United States where new technologies have
unlocked vast reserves of gas in shale rock formations.
Proponents of natural gas in transport say the low cost of the
fuel more than makes up for the greater expense of an
"Customer interest in natural gas as a heavy-duty truck fuel
will only continue to grow," said Göran Nyberg, president of
Volvo Trucks North American Sales & Marketing.
Volvo aims to have a new 13-litre LNG engine for its
long-haul trucking fleet by next year.
Shell, which is one of the world's biggest producers of LNG,
has already made moves to build LNG refuelling stations in
Canada and recently announced a decision to build two
small-scale liquefaction plants that will form the basis of two
transport corridors in North America, the company said.