• 3 minutes Shale Oil Fiasco
  • 7 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 12 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 16 minutes Global Debt Worries. How Will This End?
  • 13 hours DUMB IT DOWN-IMPEACHMENT
  • 1 hour POTUS Trump signs the HK Bill
  • 16 hours Greta named Time Magazine "Person of the Year"
  • 8 mins Tories on course to win majority
  • 25 mins americavchina.com
  • 3 hours WTO is effectively neutered. Trump *already* won the trade war against China and WTO is helpless to intervene
  • 59 mins Winter Storms Hitting Continental US
  • 11 hours Everything you think you know about economics is WRONG!
  • 21 hours Forget The Hype, Aramco Shares May be Valued At Zero Next Year
  • 52 mins Aramco Raises $25.6B in World's Biggest IPO
  • 1 day Can Renewable Natural Gas Compete With Diesel?
Alt Text

Aramco Looks To Build An LNG Fleet

Aramco’s shipping division has expressed…

Alt Text

Global LNG Markets Are Circling The Drain

Asian and European LNG prices…

Matt Smith

Matt Smith

Taking a voyage across the world of energy with ClipperData’s Director of Commodity Research. Follow on Twitter @ClipperData, @mattvsmith01

More Info

Premium Content

10 Points to Consider in the NGV Debate

The perception of natural gas as a mainstream fuel for vehicles runs the gamut, dependent upon where you live: from the improbable…to the viable…to the everyday reality. So from recent burrito research expeditions, here are ten points to stir up the melding pot of the great natural gas vehicle debate.

1) Here is a breakdown of the total number of natural gas vehicles globally. The key takeaways: there are A LOT of natural gas vehicles already in the world (15 millionish in 2011) and the number is rapidly increasing. However, there are relatively few in North America (aka, the tiny sliver at the bottom of the chart).

Number of Natural Gas Vehicles by Region

2) In a recent IEA report, natural gas use in road transport accounted for 1.4% of global gas demand in 2012. This is projected to rise to 2.5% by 2018, accounting for nearly 10% of total natural gas demand growth.

Related article: The “Mexico Explosion” in Natural Gas

3) The number of natural gas vehicles (NGVs) in the world could reach 65 million by 2020, according to the International Association of Natural Gas Vehicles (IANGV), which indicates an annual growth rate of 19%. Another study by Navigant Consulting puts this number at a much more modest (but still impressive) 35 million.

4) China is leading the charge in both total natural gas demand growth (accounting for 30% of global growth over the next five years) and natural gas demand growth for transportation, with consumption from the sector set to triple by 2018.

5) China already has 1.5 million natural gas vehicles on the road, and if its ambitious targets are achieved, it will be substituting 840,000 barrels of oil by 2030. That said, for this to occur it would need to see a tenfold increase in consumption from the vehicle sector.

6) The current leaders in terms of natural gas vehicles are Iran (2.86 million), Pakistan (2.85 million), Argentina (1.9 million), and Brazil (1.7 million). These four account for 60% of the total global count.

7) The number of natural gas vehicles in the US is now estimated at 250,000. According to the EIA, April’s natural gas vehicle fuel consumption was 2.7 Bcf for the entire month. This equates to 0.1% of total US consumption.

NGV Fuel Consumption

8) The US is seeing the most growth coming through from transit vehicles, with one in five now running on natural gas (although according to Twitter it is now one in three). There has been a flurry of companies such as Frito-Lay and Proctor & Gamble announcing recently that they are converting parts of their fleets to run on natural gas.

Related article: Shale Revolution Scuppered Gazprom’s $1 Trillion Dream

9) But just as studies on LNG exports have indicated that natural gas prices will be relatively unaffected, natural gas prices are projected to see a limited impact by rising demand from the transportation sector. All the while, by 2035 we should still see 99% of US vehicles powered by fossil fuels.

10) Finally, given the optimistic numbers presented above (well, I’m more bullish on NGVs than when I started this piece!), it seems prudent to highlight the harshest reality faced, at least by the US: that of infrastructure. According to the IEA, it can cost from $400,000 to $1.7 million to build a compressed-natural-gas filling station, and up to $4 million for a liquefied-natural-gas station. By comparison, a gasoline station costs from $50,000 to $150,000.

‘Til next time…thanks for playing!

By. Matt Smith




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • RCL on July 15 2013 said:
    I bought a 2004 F-150 bi-fuel a couple months ago. In CA fuel's easily available for about 50% of the gasoline $$. In Oregon where I have property there's only two public fueling stations in the whole damn state. And they're in the same Town!

    It varies state to state. Utah has enough to run CNG full time I hear.

    The truck runs great on both fuels. The CNG is very clean and 120 octane and 1/2 price. This will catch on.
  • JCB on July 15 2013 said:
    This statement is clearly wrong, "By comparison, a gasoline station costs from $50,000 to $150,000."
    It cost well over a million dollars to build a minimal ARCO gas station in California fifteen years ago. I larger gas station cost several million to build. Do you homework before making a such a silly statment. You can't even build a low end home for $150,000.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play