SEAL BEACH, Calif.--(BUSINESS WIRE)-- The route plan for the first phase of 150 new LNG fueling stations for America’s Natural Gas Highway (ANGH) was unveiled today by Clean Energy Fuels Corp. (Nasdaq: CLNE - News), the leading provider of natural gas fuel for transportation in North America. The company has identified 98 locations and anticipates having 70 stations open by the end of 2012 in 33 states.
Many of the fueling stations will be co-located at Pilot-Flying J Travel Centers already serving goods movement trucking through an exclusive agreement with Pilot to build, own and operate natural gas fueling facilities at agreed-upon travel centers. Pilot-Flying J is the nation's largest truck-stop operator with more than 550 retail properties in 47 states.
Major highway segments planned for early opening include, among others, those linking San Diego-Los Angeles-Riverside-Las Vegas; the Texas Triangle (Houston-San Antonio-Dallas/Ft. Worth); Los Angeles-Dallas; Houston-Chicago; Chicago-Atlanta; and a network of stations along major highways in the mid-west region (IL, IN, OH, MO, KY, TN, KS, OK, AL) to serve the heavy trucking traffic in the area.
Scheduled for completion during 2012 and 2013, the 150 first-phase stations coincide with the expected arrival of new natural gas truck engines well suited for heavy-duty, over-the-road trucking. Engine manufacturers and original equipment truck manufacturers such as Cummins-Westport, Kenworth, Peterbilt, Navistar, Freightliner and Caterpillar are expected to have Class-8 trucks available in engine sizes allowing for varied road and driving requirements.
“We are moving quickly to build this important network in order to support the new trucks,” said Andrew J. Littlefair, Clean Energy’s President and CEO. “Already, Clean Energy has engaged over 100 shippers, private fleets and for-hire carriers that have shared their operations to qualify the economic opportunity of operating natural gas trucks, which has helped us, in turn, plan the first phase of the natural gas fueling highway.”
Littlefair noted that the ANGH stations are in addition to the station building planned for the company’s traditional markets in transit, refuse, airport/taxi/shuttle and local/regional trucking, which activity accounted for 63 station projects in 2011.
In July 2011, in a major alliance supporting the transition of trucking from diesel to natural gas fuel, Chesapeake Energy Corporation (NYSE: CHK - News), the nation’s second largest natural gas producer, committed an investment of $150 million in Clean Energy to help fund the development of America’s Natural Gas Highway. In September 2011, a group of international investors committed an additional $150 million, and in December 2011, another $150 million was invested, bringing the total investment in Clean Energy in 2011 for fueling station infrastructure development and other capital projects to $450 million.
Currently priced up to $1.50 per gallon lower than diesel or gasoline (depending upon local markets), the use of natural gas fuel reduces costs significantly for vehicle and fleet owners, and reduces greenhouse gas emissions approximately 23% in medium to heavy-duty vehicles. Additionally, natural gas is a secure North American energy source with 98% of the natural gas consumed produced in the U.S. and Canada.
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Is this good new's, or am I easily excited! If this pan's out, it ought to put a dent in the NG reserve level.
Sandbar,
Still one problem... The American Car Makers!!!!! They keep shouting to the American consumer: Electric...Electric...Electric.
Again, I repeat myself...What Idiots!
America Wake UP! Tell the U.S. Car Manufactures you want to buy a CNG Vehicle at a decent price!!!!!
But since I believe the idiots running the U.S. Car Companies are also fools and have no wisdom, just my opinion... They will again miss the BIGGER PICTURE... And, Foreign Car Manufactures will again out smart U.S..
Watch Hyundai, Toyota, Kia, etc. etc. figure it out for U.S.
DrWAVeSport Cd1 1/13/2012
Let me help the Nat Gas O&G Industry ONE MORE TIME... Get on the next plane to Detroit, the WHOLE BUNCH of You Nat Gas Producers...Get a Meeting with the U.S. Car Makers. OK, and now it gets a little confusing at this point, LOL, so let me walk you through this... U.S. Car Manufacturer Company names ARE: GM/General Motors...Chrysler...Ford Got it???? Great!
Then, when you finally get all of the above figured out... TALK!!!!! Open your mouths and get a JV or Joint Investment Project, or Sell them Some Shale assets and get a #$#**& CNG Vehicle out of it... Talk them into converting an existing Vehicle into a CNG. DO SOMETHING!!!!! (To bad no more Chevy HHRs...They would have been perfect CNG vehicles!!!! And GM stopped producing them because to many bought the HHR and they couldn't sell enough of the VOLT...LOL!!!!...Again, I say, What Idiots!!!!! )
It is truly exhausting, spoon feeding idiots.
My Soap Box For The Day...
TGIF...
And still counting down... Nat Gas @ $2.631
As far as auto's, I'm afraid our old American passion for the good ole rumbly gasoline
engine is embeded to deep. (I for one am guilty........I miss my '71 Mustang. The mental
picture of an NG tank strapped to each side is not pretty, but I'm ready to grit my two teeth and
go for it!) But the converting over of "big rig's" would be a huge step. Those dude's are
beatin' asphault 24-7, and they know how to burn fuel. Good evening, everybody!
One of the regulars on GHS made the point a while back (perhaps in the thread I posted about the new Honda CNG car) that gas is practical for the big trucks but not so much for passenger cars because of the size of the tanks needed.
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You can find some good past threads on CNG as a transportation fuel by searching here (upper right search box) for "Honda" (without quotes) You will see 16 pages of links for Honda. They are in chronological order, so click on pages 15 & 16 and you will find the most recent threads and car announcements.
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I like dbob's idea of finding the trucking company that is buying lots of natgas right now at these prices and locking in low fuel costs for a long time. Whatever trucking company does that will make/save a lot of money and be a dang good investment for someone.
For OTR trucks as well as local trucks (sanitation, etc.) and taxis, etc., it is a no-brainer (I was pleased to hear D/FW Airport last week gave waiting line priority to NG powered taxis). For autos, there is the problem with the space occupied by the tank -- but for many ordinary drivers, it isn't a problem -- the trunk will still hold a couple of suitcases and the power isn't that big of an issue. If you can get a high percentage of OTR trucks and service vehicles using NG, then some portion of commuter & daily drivers, you can just about eliminate the need for imported oil. And THAT will radically change a lot of things for the better in this country, IMO.
The problem is getting to a critical mass where filling stations can make money. I'm please to see CLNE taking the big leap. It will take a few years but I think this is going to pay off for them. I've been accumulating the stock for some time and plan to continue to do so. I think over ten years it could be really big winner.
But we need an administration who is willing to lead on this issue, and we don't have that right now. They're too busy fighting NG -- mostly as a series of knee-jerk reactions -- to comprehend the significance of NG. Eventually, some president will embrace NG and take the handcuffs off the industry. When that happens, everything changes.
Few comments
Trucking companies will not convert trucks for CNG/LNG until the stations are in place and they've been proven. The economics are best with new engines that have been built from the ground up and will have a long life on CNG/LNG. Expect to see long haul companies dip their toes into the water, so to speak, perhaps ordering 10% of the trucks they buy in a given year with CNG/LNG. They not only need the fueling stations, but they have to train mechanics and drivers how to handle the stuff.
This bet pays off big provided the cost differential stays high between NG and Oil - if we return to more historic pricing norms, you might get to a point where diesel is a better choice. I'm not predicting this. but the economics do look really different if gas is at $7 mcf and oil is at $100/bbl.
That's why I made the hedging comment in the previous thread. Southwest airlines might be a good case study in this - there is lots of press on it. Essentially, many of the times they made money when other airlines didn't is because of their fuel hedging. I think they tended to hedge 3 years out. The big trucking companies are going to need to to hedge and/or see a long term price advantage to make the big switch. You'll really know when CNG has arrived because you'll start seeing the independent owner/operators buying rigs with CNG. Another sign will be wehn it makes it into the large trucks in large numbers - think Ford F350 or any of the big diesel dully trucks.
Lets suppose a long haul truck is covering 500 miles per day, 300 days per year, or 150,000 miles per year. Lets also suppose that the truck gets 8 mpg, and that NG is at a $1.50 discount per gallon equivalent. In the first year, the cost savings looks something like this 150,000/8 x 1.50 = or about $28,125
If you pay a $40,000 premium for CNG capability, its paid for inside of 18 months, and everything else is gravy after that, as long as CNG keeps a price advantage.
Interesting video from Clean Energy on the subject of CNG vs. LNG & filling station infrastructure:
A must-see. The honesty clarifies what users truly need to know before they invest.
DavidR,
Thanks for the Need To Watch video. I have a problem, however:
$1Billion for CNG and $250 Million for LNG. ????????? Shreveport/Bossier never spent $1B on CNG anything!!!!! I have a problem with the $$$$$$.
Please don't tell me the O&G Moguls are now trying to kill off their own "projects," e.g. CNG for LNG "projects."
IMO, hype and more hype for "Clean Energy" Co.
Could they please make up their minds...
Honesty (?) Not so much....
I think those were aggregate figures for the initial phase of the entire rollout, contrasting the cost of LNG with CNG. Not for a single station, but for the entire initial phase they're doing with Pilot.
DavidR,
That's not what I read and heard...
You may want to have another look, then. At about 7:50 in he explains the cost of a CNG station at $5M + Utilities. At about 8:50 in he shows the cost of a LNG station at about $2M with no utility cost. Around 9:00-10:00 he puts up a chart reflecting the entire expenditure for the ANGH at $250M for LNG and $1B for CNG. At no time did he reference $1B for the cost of a station; these figures were always in the low millions.
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