American Gas Foundation (AGF), an independent research organisation based in Washington DC, has released a study — Natural Gas as a Transportation Fuel: Business Models for Local Distribution Companies — written to enable local distribution companies (LDCs), and other stakeholders, to better understand the commercial and regulatory considerations involved in entering the NGV refueling market in the United States.
The Executive Summary states, “While natural gas supplies nearly a quarter of the primary energy used to power our[U.S.] economy, less than one percent of transportation energy is supplied by natural gas. The mainstreaming of natural gas vehicles (NGVs) offers the potential to help diversify the primary energy used in our transportation sector and to provide attractive new markets for natural gas. As such, many natural gas local distribution companies (LDCs) are currently
assessing their approach to NGVs.”
The study outlines a variety of models that may be employed; recognizing that approaches to this market will vary based on the needs and policy goals of individual regulated service territories. Attention is given to past practices, innovative approaches, and the current and near-term environment that recognizes the important role LDCs will play in establishing natural gas as a mainstream transportation fuel.
The full report is available on the AGF website.