Proceedings available for purchase
Sixty-six experts and specialists representing the interests of liquefied natural gas (LNG) and liquefied natural gas vehicles (L-NGVs) from 18 countries and four continents met in Brussels on 3-4 December 2009 to discuss critical issues and strategies to improve market opportunities for LNG as a vehicle fuel. Participants from the natural gas industry, government, equipment suppliers, consultants and related stakeholders engaged in two-half days of active dialogue that resulted in substantive findings, conclusions and strategic recommendations about worldwide L-NGV markets, technologies and politics.
A number of key findings emerged from the presentations and discussion:
- LNG Fuel Markets: They differ by region but the supply will be strong well into the future. Worldwide trade in liquefied natural gas (LNG) is anticipated to triple from its 2002 levels to 2030, to over 700 billion cubic meters (bcm). The Asia-Pacific region is the most active in terms of trading and importing, with Japan/Korea gas consumption 100% reliant on LNG, and Australia, among others, already supplying countries such as China, which is undergoing a massive expansion to 22 LNG receiving terminals along its east coast. Europe also will double its LNG terminals from 11 to 22 in the next decade.
- L-NGVs are diverse and growing in availability. Factory built vehicles operating on LNG are being manufactured in Japan, Korea and China. A wide variety of heavy duty trucks are available in North America, relying principally on two LNG engine manufacturers. In Europe Mercedes offers an LNG Econic and Volvo will offer dual fuel truck varieties. More LNG buses are likely to be seen closer to receiving terminals. China is gearing up to produce 2000-4000 LNG buses in a number of cities, and Korea is developing a plan to introduce 75,000 LNG trucks by 2020 supported by 200-300 LNG fueling stations. Inland waterway ships in Norway will expand use of LNG and Thailand is developing fleets of LNG fishing boats.
- Fueling Infrastructure: keep options open (large & small) but keep it simple.
Creating the ideal LNG fueling station has some complex features, is expensive (for large-scale systems), and requires relatively long lead time to construct and to have approved. Large stations can serve hundreds of vehicles. Small stations, including those that deliver liquefied or compressed natural gas (L-CNG) add to the versatility of using the fuel.
A Strategic Roadmap
Specific actions also were identified, that provide a strategic pathway or ‘roadmap’ for future activities in the LNG sector:
- International standards are moving forward but need more expert stakeholder involvement. The LNG industry itself must continue to invest the expertise required to develop and harmonize worldwide LNG standards.
- Support from fuel suppliers remains fragmented and should be harnessed. This includes natural gas distribution companies, which today look at LNG for re-gasification into the existing pipeline network and less as a vehicle fuel. Traditional distributors from the industrial gas sector can benefit from LNG vehicle.
- Over-the-road trucks and heavy duty urban vehicles are the priority L-NGV markets. Long haul trucking is seen as the principal target for LNG, but urban buses and refuse trucks represent an equally strong market. Trucking and shipping to/from port facilities are also seen as fertile markets. Marine applications will likely be followed in a third market tier by the railway industry.
- Government support, particularly R&D, is needed to address things such as fueling issues, dual fuel engine technologies, and expansion of off-road applications including marine and railway vehicles. More focused NGV industry advocacy is required at national, regional and international levels to bring attention to the environmental, climate and energy security benefits of replacing heavy diesel fuel with clean LNG. This includes activities with the International Maritime Organization (IMO), part of the United Nations, to advocate LNG as a maritime fuel serving ships, which will be required to use cleaner fuels and to look at opportunities in seaport operations, including trucks that serve these facilities.
- Communications – to government, the gas industry, but particularly to key customers – will be critical in the uptake of L-NGVs. The benefits of LNG should be linked with CNG and biomethane to demonstrate the diversity of natural gas applications across the full gamut of the transportation sector including, at some future time, the aviation sector.
The Critical Issues Strategic Plan with detailed results of the workshop will be distributed separately in the very near future.
The proceedings from LNG is HOT are available to anyone not attending the workshop by visiting the IANGV website here. (Price: € 155). Participants at the workshop receive the proceedings as part of their registration; the document can be downloaded by visiting www.LNGisHot.com and going to ‘proceedings.’
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