28 July 14

Market Size, Demand and Development for LNG fuel in the USA

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LNG

The growth of the domestic US natural gas market has opened up a new realm of possibilities for energy consumers. Some are already capitalizing on Liquefied Natural Gas (LNG) to make savings, attracted by the prospect of a cheaper, less volatile fuel source. Government and corporate fleets have been the earliest adopters, seeking to improve their environmental profile as well as reduce costs. Now, an increasing number of trucking businesses are converting their fleets to run on LNG. Beyond these markets, the potential applications to save fuel costs by using LNG are widespread. High Horse Power (HHP) requirements in the rail, marine, mining and drilling industries are also seeking to realise the benefits of this emerging fuel source.
However, in order for the potential of LNG to be realised across these industries, greater infrastructure investment is essential. The scale of the need is striking, as revealed in a previous FC Business Intelligence report, Dale Lewis, Director of Strategic Analysis at railroad company CSX, estimates that it would take more than 100 new plants, producing at the 400,000 GPD level, to displace one third of the diesel burned as a fuel in
the US by heavy trucks and freight railroads. Analysis from NGV engineering firm Westport also highlights the need for investment in liquefaction plants, projecting that by 2025 global liquefaction requirement will reach 40m tons per annum.

Read the whole analysis here

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