Ryder System Inc and Shell Oil Company have signed an agreement for 15 liquefied natural gas (LNG) heavy-duty vehicles supporting oil and gas logistics operations in Lafayette LA and Houston TX.
Shell has relied on Ryder for logistics solutions for more than 10 years. As Shell's logistics provider, Ryder currently manages road transportation for Shell’s freight hauling activities across its US exploration and production (E&P) activities, including a dedicated fleet that directly supports its Gulf of Mexico operations.
The new 15 LNG fueled vehicles will replace Ryder diesel-powered vehicles in the existing fleet and will be serviced out of Ryder’s Lafayette facility, which is being engineered to meet the unique compliance requirements for natural gas. As part of this initiative, Ryder has signed a five-year fuel agreement with Shell which will provide liquefied natural gas (LNG) fuel for the dedicated natural gas fleet.
The Shell seaport and cross state routes are an application ideally suited for natural gas vehicles, according to Shell officials. Ryder worked with Shell to develop a customized truck specification that was weight-sensitive to maximize freight revenue, while assuring durability and operability in the field.
“We are excited to work with Ryder to transfer diesel vehicles to LNG,” said Dan Flynn, Shell vice-president of logistics. “LNG can be a good choice for truck owners and more are making the switch to LNG. It is great to see Ryder’s drive for Shell LNG, a clean burning fuel that meets emissions regulations without the need for after treatment systems used in diesel engines. Ryder has been extremely responsive to our service needs, which makes us confident about our continued relationship. Ryder’s help was critical to provide the logistics expertise, knowledge, and know-how needed to ensure that the fleet was operating at its best.”
John Diez, president of Ryder Dedicated Transportation Solutions, said: “It has truly been a pleasure to have Shell as a loyal Ryder customer for more than 10 years. With Ryder as its dedicated transportation partner, Shell can continue to count on having a reliable fleet ready to maintain the excellent reputation they’ve worked very hard to earn. We are honored that Shell trusts Ryder to represent their brand on the road and with their customers, and that we can help them improve the sustainability and efficiency of their fleet.”
Ryder Dedicated Transportation Solutions provides companies with vehicles, maintenance, drivers, management and other value-added services. The oil and gas industry relies on Ryder to take costs and risks out of transportation and logistics, enabling customers to maximize uptime, keep supplies and goods moving, and bring costs down. This is all supported by a proven health and safety culture driven by experienced oilfield operators and health, safety, and environmental professionals. With more than 200 customers in the oil and gas sector, Ryder is at the forefront of change as the industry finds new ways to streamline and optimize fleets and supply chains.
The natural gas vehicles in the Shell fleet are being made available through Ryder’s participation in the Texas Natural Gas Vehicle Grant Program (TNGVGP), funded by the Texas Emissions Reduction Plan (TERP) initiatives and administered by the Texas Commission on Environmental Quality (TCEQ).