“At Gulf, we believe the most effective way to increase market penetration for natural gas in the transportation sector is for large, centrally-fueled fleets that self-supply to lock in the current spread between natural gas and diesel, which will ensure a return on their investment,” said Ron Sabia, President of Gulf Oil.
“We intend to convert more of our fleet and to supply and distribute LNG to our customers,” remarked Laura Scott, Senior Vice President of New Business Ventures. “The economic benefits are remarkable. For example, fleets that have more than 10 vehicles that use at least 20,000 gallons per year in a ‘return-to-base operation’ can expect to lock in an after-tax internal rate of return in the 20 to 35 percent range. For our own fleet, we locked in a five year discount against diesel costs to guarantee a significant return on investment.”
Source: Gulf Oil LP
