California-based Clean Energy Fuels Corp. and Enbridge Inc.’s new ventures arm Canadian Union Energy Solutions (UES) have landed an agreement to launch their fourth Ontario compressed natural gas (CNG) outlet.

The multi-year deal would use CNG to fuel 25 converted delivery vans of United Parcel Service (UPS) in London, 120 miles southwest of Toronto. The gasoline equivalent amount of CNG is estimated at 525,000 gallons, the companies said.

Enbridge’s Cynthia Hansen, head of Ontario gas storage and distribution for the Calgary-based conglomerate, said the venture would help reduce emissions in the medium- and heavy-duty transportation industries.

UPS Canada Vice President Floyd Bristol added that CNG is an important part of the firm’s strategy: to increase its use of...