The world is currently undergoing a transformation from traditional fuel sources for vehicles, homes and industry. Traditional oil-based fuels are being displaced by natural gas. This conversion is driven by both cost and environmental considerations. Gas has also become a fuel of choice for power generation, with reduced CO2 emissions compared to coal. The second major shift is the search for a cleaner alternative to gasoline and diesel in vehicles. LNG is rapidly becoming the fuel of choice for low emission vehicles. LNG can be produced in remote locations and distributed to end users easily and quickly.
LNG must maintain at least a US$1.50 price differential to diesel gallon equivalent to maintain its advantage. The fuel cost advantage of the clean burning fuel is either driving the switch to LNG across the globe on its own, or consumers are having to keep up with emissions regulations.
In China alone, there are an estimated 1300 LNG fuelling stations and over 80 000 vehicles operating on LNG. Projections of over one million vehicles in operation in the next few years are…
This article originally appeared in the January 2015 issue of LNG Industry.
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Written by Laura Crowdis, Brian Price and Shawn Hoffart, Black & Veatch.