Union Pacific Corporation (UNP), General Electric Company (GE), Caterpillar Inc. (CAT) & Locomotives: The Next Big Source of Demand for Natural Gas?

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But even if the engine technology can be developed and seamlessly integrated across locomotives, other challenges remain. Logistical constraints are one of the biggest. How will LNG be delivered to the vast network of locomotives these companies have?

That may provide an enticing opportunity for third-party suppliers. General Electric Company (NYSE:GE) may already have a leg up. The company manufactures units that can liquefy natural gas at any point along a distribution network. It has already sold the equipment — called MicroLNG units — to Clean Energy Fuels to help develop a vast network of LNG fueling stations for trucks.

The article Locomotives: The Next Big Source of Demand for Natural Gas? originally appeared on Fool.com.

Fool contributor Arjun Sreekumar has no position in any stocks mentioned. The Motley Fool recommends Berkshire Hathaway and Clean Energy Fuels and owns shares of Berkshire Hathaway and General Electric.

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