Category Archives: CNG

How to Convert the Country to Natural Gas, by T. Boone Pickens

Photograph by Matt Rainwaters for Bloomberg Businessweek

April 11, 2013
By T. Boone Pickens

It starts with getting into the transportation sector. When I started the Pickens Plan in 2008, there were about 200,000 vehicles on natural gas in the world; now there’s about 16 million. That growth’s coming from everywhere but the U.S. Places like Iran and Argentina. China’s already got 40,000 trucks on LNG [liquefied natural gas], and they import the stuff. And here we are in the U.S., with more natural gas than any other country in the world, and we aren’t doing a thing about it. It’s just amazing to me that these dumb f-‍-‍-s in D.C. don’t see this opportunity and try to capitalize on it.

The best thing to do is focus on heavy-duty trucks and give them a tax credit. It could work like a toll road, what you call a pay-for system. If you use it, you pay for it. So you give these guys a break upfront to convert to natural gas trucks, and then you tax the natural gas.

You don’t put natural gas in your corner gasoline station. You put natural gas in a truck stop. It’s a fuel that competes against diesel. There are about 8 million heavy-duty trucks in the U.S. If you convert them to natural gas, that boosts consumption by about 15 billion to 20 billion cubic feet a day. Right now we do about 70 billion cubic feet a day. So that extra demand would immediately boost the price and get drills moving again. Today natural gas is about $2.79 a gallon, compared with about $4.79 for diesel. That’s a huge advantage. But here’s the thing: If you take natural gas from about $4 (per thousand cubic feet) to $6, you only increase it by about 28¢ a gallon. So it’s cleaner by 30 percent and still cheaper by almost a half.

Pickens is founder, chairman, and CEO of the hedge fund BP Capital. As told to Matthew Philips

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AmericaCNG to Build LNG Processing Plants

AmericaCNG has arranged funding for plans to build three strategically located LNG processing plants in Texas, Oklahoma and New Mexico targeting the wholesale and resale markets.

Plans call for development to begin in 2013. Each plant will produce between 7,500 to 40,000 Diesel Gallons Equivalent (DGE) per day of capacity, subject to current and future contractual commitments. According to Joseph Farley, Director of Business Development, “We see a need for LNG and CNG as another important supply fuel to the Oil & Gas industry and service providers. Producers and Suppliers of Oil & Gas are looking for ways to cut their fuel cost and by switching to Natural Gas for their rigs, frac units and fleets they can save millions of dollars each year.

“AmericaCNG.Com,Inc along with their Strategic Alliance Partners(SAP) can convert the trucks, the frac units and the drilling rigs to run off CNG. Thigpen Energy, one of our SAP, is a field service company that specializes in the installation and operation of natural gas fueling infrastructure, be it CNG, LNG or field gas.

“Gas safety equipment, crew safety training and fuel reconciliation are all part of the Thigpen Energy solution. By utilizing our LNG processing, storage and transportation capabilities we will be able to wholesale the fuel, plus transport the fuel to each well site, regasify it back to CNG, and sell it to drillers, suppliers, service companies and converted vehicles…”

“We have the capability to turn around a project in about 180 days for the smaller units out in the field.”

Another SAP is Alternative Gas Processing Inc.. They supply wellhead gas processing equipment for methane and NGL’s, portable LNG fuel skids, and LNG and CNG transportation modules. Methane and NGL recovery at the well head can be accomplished with no out of pocket expense to the producer in specific targeted areas.

AmericaCNG to Build LNG Processing Plants LNG World News.

EIA Projections Show U.S. Energy Production Growing Faster than Consumption

EIA issued its Annual Energy Outlook 2013 (AEO2013) Reference case, which highlights a growth in total U.S. energy production that exceeds growth in total U.S. energy consumption through 2040.

“EIA’s updated Reference case shows how evolving consumer preferences, improved technology, and economic changes are pushing the nation toward more domestic energy production, greater vehicle efficiency, greater use of clean energy, and reduced energy imports,” said EIA Administrator Adam Sieminski.

“This combination has markedly reduced projected energy-related carbon dioxide emissions,” said Mr. Sieminski.

AEO2013 offers a number of key findings, including:

Crude oil production, especially from tight oil plays, rises sharply over the next decade. Domestic oil production will rise to 7.5 million barrels per day (bpd) in 2019, up from less than 6 million bpd in 2011.

Motor gasoline consumption will be less than previously estimated. Compared with the last AEO, the AEO2013 shows lower gasoline use, reflecting the introduction of more stringent corporate average fuel economy (CAFE) standards. Growth in diesel fuel consumption will be moderated by the increased use of natural gas in heavy-duty vehicles.

The United States becomes a net exporter of natural gas earlier than estimated a year ago. Because quickly rising natural gas production outpaces domestic consumption, the United States will become a net exporter of liquefied natural gas (LNG) in 2016 and a net exporter of total natural gas (including via pipelines) in 2020.

Renewable fuel use grows at a much faster rate than fossil fuel use. The share of electricity generation from renewables grows to 16 percent in 2040 from 13 percent in 2011.

Net imports of energy decline. The decline reflects increased domestic production of both petroleum and natural gas, increased use of biofuels, and lower demand resulting from the adoption of new vehicle fuel efficiency standards and rising energy prices. The net import share of total U.S. energy consumption falls to 9 percent in 2040 from 19 percent in 2011.

The AEO2013 Reference case focuses on the drivers that shape U.S. energy markets under the assumption that current laws and regulations remain generally unchanged throughout the projection period. The complete AEO2013, to be released in early 2013, will include many alternative cases in recognition of the uncertainty inherent in making projections about energy markets, which in part arises from assumptions about policies and other market drivers such as trends in prices and economic growth.

  • Key updates made for the AEO2013 Reference case include the following:
  • Extension of the projection period through 2040, an additional 5 years beyond AEO2012.
  • A revised outlook for industrial production to reflect the impacts of increased shale gas production and lower natural gas prices, which result in faster growth for industrial production and energy consumption. The industries affected include, in particular, bulk chemicals and primary metals.
  • Adoption of final model year 2017 to 2025 greenhouse gas emissions and CAFE standards for light-duty vehicles (LDVs), which increases the projected combined fuel economy of new LDVs to 47.3 mpg in 2025.
  • Updated modeling of LNG export potential.
  • Updated power generation unit costs that capture recent cost declines for some renewable technologies, which tend to lead to greater use of renewable generation, particularly solar technologies.

EIA Projections Show U.S. Energy Production Growing Faster than Consumption LNG World News.

Corpus Christi, TX: Apache to Add CNG Gas Fuelling Dispensers at Midland Stripes Stores

Stripes LLC, a subsidiary of Susser Holdings Corporation announced it is partnering with Apache Corporation to add natural gas fueling dispensers at selected Stripes® convenience store locations.

Initially, compressed natural gas (CNG) fueling capability will be available at two Stripes locations in the Midland, Texas area.

Steve DeSutter, Stripes President and CEO Retail, said, “Adding natural gas to our conventional motor fuel products reinforces our mission to give Stripes customers what they want at a great price in our convenient store locations.

“We certainly see the role of natural gas in our energy future, and we are looking forward to participating as it evolves as a viable alternative transportation fuel. We plan to evaluate the results of our pilot project in West Texas, and if it is successful, we expect to gradually roll out CNG fueling capabilities in other Stripes markets,” DeSutter said.

Steve Farris, Apache’s Chairman and Chief Executive Officer, said: “Natural gas discovered and produced in the United States is a smart alternative to conventional fuels. It’s cheaper, cleaner, and abundant.

“We use it for our fleet cars and trucks with great results, lowering operating costs and reducing our environmental footprint. Partnering with Stripes provides our fleet and other CNG users with a more convenient fueling experience as well as access to their stores and other amenities.”

Today compressed natural gas is priced 30% to 40% lower than gasoline or diesel on a gallonequivalent basis, which means a big savings at the pump. According to industry experts, natural gas is kinder to the environment by reducing vehicle exhaust emissions, and because of our nation’s abundant natural gas reserves, it represents a more secure American energy supply. According to the Department of Energy Clean Cities Alternative Fuel Pricing Report and the Institute of Energy Research, known domestic resources could satisfy the nation’s needs for more than 100 years.

Apache to Add Gas Fuelling Dispensers at Stripes Stores, USA LNG World News.

Cummins Westport Begins Developing New Gas Engine, Canada

Cummins Westport announced it has begun development on the ISB6.7 G, a mid-range 6.7 liter natural gas engine designed to meet the increasing demand for on-highway vehicles powered by lower cost, cleaner and increasingly abundant natural gas. As a leading supplier of natural gas engines, Cummins Westport Inc. continues to expand its product range to supply the growing demand for natural gas engines.

The ISB6.7 G engine will be based on the Cummins ISB6.7 diesel engine and will use Cummins Westport’s proven spark-ignited, stoichiometric cooled exhaust gas recirculation (SEGR) technology. Exhaust aftertreatment will be provided by a simple, maintenance-free three-way catalyst.

The engine will run on compressed natural gas (CNG), however, the natural gas may be stored on the vehicle in liquefied natural gas (LNG) state or as CNG. The ISB6.7 G is expected to be in production by 2015 and will be designed to meet Environmental Protection Agency (EPA) and California Air Resources Board (CARB) regulations in force at the time of launch.

“The addition of the ISB6.7 G will round out our family of high performance natural gas engines,” said Jim Arthurs, President of Cummins Westport. “It joins the 8.9-liter ISL G, with over 16,000 engines in service, and the 11.9-litre ISX12 G, which will start production in 2013, to give our customers a broad range of natural gas engines for on-highway applications.”

Cummins Westport Begins Developing New Gas Engine, Canada LNG World News.

USA: Caterpillar to Produce More Gas Fueled Equipment and Engines

Caterpillar Inc., the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives, announced at the inaugural Natural Gas for High Horsepower Applications (HHP) Summit on Sept. 27 its intentions to go ‘all-in’ on natural gas and produce even more natural gas-fueled equipment and engines for a variety of applications.

Joel Feucht, Caterpillar’s director of gas engine strategy for the energy and power systems businesses, made the announcement during his keynote address at HHP Summit 2012, a first-ofits-kind event that examined the economic and environmental benefits of using the clean-burning, domestically abundant natural gas in fuel-hungry high horsepower applications.

We have decided to go all-in on gas,” declared Feucht during his keynote address at HHP Summit on Sept. 27. “We are going to invest because we see a global market long term. Large engines are going gas. It’s not debatable; it’s our conclusion.”

Feucht’s remarks confirmed that Caterpillar will provide natural gas fuel as an option for engines across its many high horsepower lines for marine, rail, mining, earthmoving and drilling operations. The company recently announced its first expected liquefied natural gas (LNG)-powered will likely include Cat 793, 795 and 797 mining trucks, and locomotives produced by Electro-Motive Diesel (EMD), a unit of Caterpillar’s Progress Rail Services.

“There is huge economic incentive to move to natural gas,” Feucht stated noting that price of oil and gas are going to stay disconnected for the foreseeable future thereby creating an economic incentive to use natural gas in fuel-hungry high horsepower applications.

Current users of natural gas to power high horsepower equipment are realizing a cost savings of 30 to 50 percent. New technologies expanding access in North America have contributed to the low-cost of natural gas.

Caterpillar to Produce More Gas Fueled Equipment and Engines, USA LNG World News.

USA: ANGA Provides CNG Buses for Republican National Convention

America’s Natural Gas Alliance (ANGA) announced that it is providing buses fueled by clean, affordable, American compressed natural gas (CNG) for the 2012 Republican National Convention.

The 12 shuttle buses, dubbed the GOP EZ Shuttles, will transport convention participants on specific routes to several hotels, as well as attractions in the Tampa Bay area, including Ybor City and Busch Gardens. ANGA is working with local utility TECO Peoples Gas and Ultimate CNG to provide CNG fuel for the buses.

CNG fuel provides significant cost savings over diesel-fueled buses. When compared to diesel, compressed natural gas costs about $1.69 less per gallon equivalent. CNG also offers fleets an American fuel choice that is cleaner for the environment.

“We are proud to have this opportunity to provide transportation to convention participants in Tampa and to give them a first-hand experience with natural gas vehicles,” said ANGA President and Chief Executive Office Regina Hopper. “Companies and local leaders across the country are embracing natural gas as a fuel choice and calling for more vehicle options and filling stations to help drive this change. Our message in Tampa and beyond is that this is an extraordinary opportunity for our nation, and it’s time to get on board with this American fuel choice.”

Tampa and St. Petersburg are already taking advantage of natural gas as a clean, affordable, American transportation fuel, using it for airport transit vehicles and as part of the Hillsborough Area Regional Transit system starting next year. The decision to employ natural gas vehicles will add up to substantial cost savings and environmental benefits over the life of the vehicles.

“As mayor, I have seen firsthand the benefits that natural gas vehicles can bring in terms of lower fuel costs and clean air. I am pleased to welcome natural gas buses to the convention. These buses will not only provide a cleaner, cheaper method of transport but will also connect the thousands of guests here for various convention events to our local attractions,” said City of Tampa Mayor Bob Buckhorn.

“We’re delighted that these 12 natural gas vehicles – what we call ‘the Clean Dozen’ – will be part of our convention,” said William Harris, CEO of the 2012 Republican National Convention Committee on Arrangements. “Energy independence is critical to Mitt Romney’s vision of a better future for all Americans, which is what this convention is all about.”

Thanks to recent discoveries of vast supplies of shale gas throughout our nation, the United States is now the world’s leading producer of this versatile energy resource that can be used for transportation, power generation and industrial purposes. Greater use of natural gas vehicles can save money, create American jobs and enhance U.S. energy security. Leading companies such as Ryder, Verizon and AT&T have invested in natural gas vehicles for their fleets.

Natural gas production is responsible for nearly 3 million jobs and adds $385 billion annually to our economy. Abundant domestic supplies also translate into affordable energy, increasing the disposable income for the average American household by an estimated $926 this year.

Florida is the second largest user of natural gas in the country, with 62 percent of the state’s electricity generation coming from natural gas. According to a recent IHS study, natural gas supported more than 15,000 jobs in Florida in 2010. That number is expected to rise to more than 30,000 by 2035. In addition, IHS found that natural gas will contribute more than $23 billion in government revenue to Florida by 2035

ANGA also will be providing buses for the Democratic National Convention in Charlotte, NC.

USA: ANGA Provides CNG Buses for Republican National Convention LNG World News.

Maxximus World Records Highlight Power of LNG

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April 13, 2012 | USA, Los Angeles CA

Maintaining the crown as the world’s fastest street-legal car, the Maxximus LNG 2000, the brainchild of financier Bruce McMahan and Indianapolis-based designer Marlon Kirby, has now set world records for both LNG (liquefied natural gas) and LPG (propane). By utilizing proprietary technology, the Maxximus team say they have revolutionized the next generation of green vehicles that provides “legendary” versatility for using both natural fuels and reducing our dependence on foreign fuel sources.

The Maxximus LNG 2000 achieved both records at the South Georgia Motorsports Park, with LNG records broken in January and LPG records broken in march.

The table below displays the results. Note the outstanding 0 – 60 mph (0 – 97 kph) in just 1.96 seconds.

MAXXIMUS LPG LNG
0 – 60 mph 2.6 seconds 1.96 seconds
0 – 150 mph 9.21 seconds
Speed in 1/4 mile 134 mph 159.9 mph
Speed in 1/4 mile 215.5 kph 257.3 kph
1/4 mile elapsed time 10.28 seconds 9.63 seconds

The car can run on LNG, CNG and LPG with on demand adjustments.

Centaur Performance Group is owned by financier and philanthropist Bruce McMahan, who states, “When it comes to automobile performance, natural gas is at the forefront of people’s thinking. By using both LNG and LPG instead of gasoline, Centaur is taking up the charge in doing all it can to reduce America’s dependence on foreign fuel sources.”

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“Natural gas is a lot more attractive given the situation in the market, and there isn’t a car on the market that currently utilizes both LNG and propane. It’s the ultimate win-win for everybody,” commented Kirby.

In addition, Centaur is also developing a consumer-targeted line of vehicles called the Centaur Dragonfly that can be powered by four fuel types — gasoline, LNG, LPG and CNG (compressed natural gas).

(This article compiled using information from a Centaur Maxximus Motion press release)

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