Westport, Shell to collaborate on North American LNG market

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Westport, Shell Westport Innovations Inc. announced that it has entered into an agreement with Shell to launch a co-marketing program in North America aimed at providing customers a better economic case when purchasing and operating liquefied natural gas (LNG)-powered vehicles by consolidating key value chain components such as fuel supply, customer support and comprehensive maintenance into a single user-friendly package.

“Westport and Shell share an unfailing commitment to innovation, and we believe this co-marketing program is a unique example of using commercial innovation to reshape the value proposition of a new technology to its customers,” says David Demers, chief executive officer of Westport Innovations Inc. “As a result of this initiative, we believe the use of natural gas as a fuel for transportation will accelerate. The North American launch is an important first step with Shell, and we look forward to the continued proliferation of our advanced technology products and integration services.”

Under the terms of the agreement, both companies will leverage their positions in LNG production and distribution for Shell and LNG vehicle systems and technology for Westport to deliver an integrated commercial solution to participating customers, initially in North America. The companies also will collaborate to develop industry standards for LNG as a new transportation fuel in support of their ongoing efforts to maintain the highest health, safety and sustainable development practices.

“We at Shell believe that natural gas, because of its abundance and strong environmental profile, is a destination solution in the transportation fuels space,” says José-Alberto Lima, Shell vice president for LNG and gas monetization. “This alliance with Westport will allow us to bring these benefits to market in a way that I believe can potentially transform fuel consumption in the heavy-duty vehicle segment for years to come.”