LNG fuel use rapidly rising amid low costs - report
Houston-based energy analysis firm Zeus Development says that LNG fuel use is rapidly advancing across several heavy-duty transportation modes, including ships, locomotives, ore carriers, and highway trucks.
"The delivered price of LNG to the vessel by tank truck has been quoted as $1.05 to $1.32 per gallon," said David Moseley, assistant secretary for Washington State Department of the Transportation Ferries division.
“By switching to LNG, Washington State Ferries estimates that it can cut operating costs by nearly a third while also reducing its emissions,” he added. “The fuel cost savings [of LNG] is approximately 40-50% at today's pricing.”
In China, vast numbers of highway trucks are fueling with LNG as thousands of new units are built to reduce oil imports and clean the environment.
Consequently, the cost of LNG-fueled truck models has fallen to within 20% of their diesel counterparts as manufacturing volumes reach hundreds per month, the firm said.
China is also working on LNG-fueled inland marine and rail applications.
In Europe, more than 20 offshore supply vessels, ferries and cargo ships are now powered with LNG, the analysts said.
The same may soon be true in North America as natural gas is even lower in price and the cost premiums for gas-fueled vehicles fall.
While high fuel consumption marine and rail might enjoy the greatest cost savings per vehicle, LNG use with on-highway trucks is also gaining momentum, according to the analysts.
Financier T. Boone Pickens said recently that within 10 years he expects the cost of a natural gas truck to be the same as a diesel unit.
He said that the trend is already in motion. For example, a natural gas-powered refuse hauler that cost $50,000 more than its diesel alternative a few years ago is now only about $10,000 more.
More information can be found at the Zeus website.
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