CN joins the LNG testing phase, ordering 4 LNG tenders.
Westport Innovations Inc. (TSX:WPT/NASDAQ:WPRT), today announced the launch of a liquefied natural gas (LNG) tender product solution with an order for four tenders from Canadian National Railway (CN) (TSX:CNR) (NYSE:CNI). The first tender to supply fuel to an adjacent natural-gas powered locomotive will be delivered in the fourth quarter of 2013.
The next generation hydrocarbons that we are extracting (shale gas, shale oil and Canadian oil sands) produce smaller fractions of diesel fuel. Shale gas and shale oil are lighter, producing more natural gas, propane, butane, etc. Oil sands are heavier and solid at room temperature. Diesel fuel comes from the middle of what is becoming a dumbbell shaped mix. As conventional oil sources are depleted, the trucking industry and railroad industry will be pressured to reduce their dependence on diesel.