CNG will kill the oil market?

Natural gas is cleaner and cheaper than oil. If it is an environmentally friendly fuel, and it is already widely used to generate electricity, then why the world still goes on cars running on natural gas? And replace if natural gas oil?

Gas is now so cheap that many manufacturers are trying to make a profit. Last year, US gas prices fell several times. It is difficult to think of a better time to use the gas until the car manufacturers do not make electric cars more affordable, to compete with vehicles with internal combustion engine.

In fact, there are about 30 million cars running on gas. These 30 million vehicles run on compressed natural gas rather than liquefied natural gas. However, LNG is direct competition diesel trucks, which account for a significant portion of the world fleet and emissions. The nearly 30 million cars running on gas are concentrated in Asia, Latin America and Europe. And in North America and Africa a quarter of a million cars run on gas.

a Few decades ago, when oil was expensive in the poorer parts of Europe there was a surge of modernization of vehicles using compressed natural gas. At the time these upgraded cars did not have much power.

But now everything has changed.

Test drive 2012 conducted by Jalopnik on dual-fuel truck showed that in this situation, progress has been made. Power is no longer a problem for vehicles operating on compressed natural gas. However, vehicles operating on compressed natural gas, a little bit. Too few filling stations.

the Infrastructure problem can be solved over time if people will be interested in purchasing vehicles that run on compressed natural gas. They are cleaner than cars running on gasoline and diesel fuel. So why not go to them? Because, according to some studies, gas is not much cleaner.

Trucks — a main growth area for natural gas, this time in a liquefied and not compressed. And the use of CNG in the trucks is increasing. However, last year, the European NGO group “Transport and environment” published a study stating that the LNG trucks, pollute the environment 5 times more than those that run on diesel fuel. A totally unexpected conclusion which angered the auto industry, which was quick to accuse the organization in the wrong interpretation of the data.

“In the test was not taken into account the sulphur content in diesel fuel, which after combustion is the main source of air pollution,” said Mehdi Thuile, an expert on LNG in the LNG project NOVATEK on the Yamal Peninsula.

Despite the fact that freight cars in Europe and North America use diesel fuel with low sulfur content, there are many places where trucks operate on diesel fuel with high sulphur content to 50 ppm. What is the sulfur content in LNG? Less than 1 ppm. Moreover, diesel engines produce soot and solid particles, while the CNG engines do not. They also do not produce dust or fumes, added Thuile.

Not everyone agrees with the conclusions of the organization. For example, last year the Netherlands organization for applied scientific research said that the truck Volvo FH LNG carbon dioxide emissions are almost 20% lower than diesel Euro 6 trucks. It is the latest and toughest emission standards in the EU.

However, the organization argues that it does not make vehicles running on natural gas is better.

In another study “Compressed and liquefied natural gas for vehicles and vessels — the facts” says that some cars running on compressed natural gas and LNG, lower exhaust emissions, but their emissions during the life cycle above. Because of this, they are worse than gasoline and diesel.

it is difficult to accept, given the reputation of natural gas as a fuel with lower emissions. But what focus group NGO “Transport & environment”, for methane leaks. Methane, being a much more powerful greenhouse gas than carbon dioxide, has attracted the attention of ecologists. However, cars that run on LNG and compressed natural gas, do not emit methane. It is the leakage of methane during the movement of natural gas from the well to the LNG train and impair the reputation of the cleaner fuel.

For those who adhere to the vision of “all or nothing”, no fossil fuel will never be clean enough that you can use it. For those who are more realistic, it’s a matter of choice. Cannot be vehicles with zero emissions, but it is possible to reduce CO2 emissions, particulate emissions and sulphur. It’s LNG and compressed natural gas, which is a bit cheaper than fuel derived from oil, to the same cleaner.

Natural gas can’t kill the oil, but to undermine the demand for it in the sector of road and Maritime transport. In long-haul trucks, and ships traditionally used diesel fuel and oil, highly polluting, even with more stringent emissions standards. It is not surprising that LNG is considered the best way of development after the entry into force of the rules of the International Maritime organization 2020 emissions of sulphur.

Now, increasing investments in ships operating on LNG, was reported in the beginning of the month in the Wall Street Journal. Recently, CMA CGM Group, the largest French transport company engaged in container shipping, ordered 22 vessels running on LNG. The total number of orders for LNG ships is 243, but in the next few years that number will rise, because there is no alternative.

Interestingly, sales of cars running on CNG are also rising. Research Insights Market Research showed that the market of vehicles fuelled withnative gas, will expand by about 7.8% over the next 5 years, reaching $10,39 billion in 2024. This is a solid growth, even if not on a global scale. In India alone, one of the largest automotive markets in the world — cars that run on CNG can be half of sales by 2030, according to Nomura.

Thus, natural gas will kill the oil completely, but will complicate the use of oil in the key transport sector, particularly in the Maritime and freight transport.