Study Says U.S. and Canadian Gas Vehicle Markets See Increased Demand

Study Says U.S. and Canadian Gas Vehicle Markets See Increased Demand

A recently completed analysis of the U.S. and Canadian Natural Gas Vehicle Market found that while there are cost and infrastructure challenges to the broader use of Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) vehicles, demand for natural gas vehicles has increased.

Using 2009 numbers, it was found that the amount of natural gas demanded for transportation use is 3.2 billion cubic feet, the equivalent of 27.7 million gallons of gasoline.

The analysis, conducted by TIAX, LLC, is a thorough and independent assessment of the key technical, economic, regulatory, social, and political factors and challenges that shape the market for natural gas vehicles. This week, the first portions of TIAX’s analysis addressing CNG and LNG Infrastructure were released and can be found on ANGA’s website.

The report sections on CNG and LNG infrastructure are the most comprehensive and technical assessments about the current state of CNG and LNG transportation. In these sections, TIAX confronts  the “chicken and the egg” conversations about natural gas vehicles; namely, do we need more natural gas vehicles to spur infrastructure development or do we need more infrastructure to be developed so that more natural gas vehicles can be put to use?

TIAX will release other portions of their study in the coming weeks and months. But as the full report is rolled out, here are some other important findings from the analysis:

  • There are approximately 1,000 CNG stations in the U.S. They compete with approximately 120,000 retail gasoline stations;
  • There are four main types of CNG infrastructure development being used in the U.S.:
    • Onsite private fueling for captive fleets (for example, city bus or garbage truck fleets)
    • Onsite private fueling with public dispensing access
    • Offsite private fueling that require a cardlock key for use
    • Public fueling (stations that are open to everyone)
  • According to TIAX’s study, the average cost to build CNG stations ranges between $600,000 and $1,000,000 per station; and
  • Successful implementation of LNG infrastructure will minimize costs in the LNG supply chain.

LNG World News Staff, May 25, 2012

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