Natural gas vehicles are coming to Pennsylvania

Los Angeles Auto Show Previews Latest Car Models

Today the term Marcellus Shale is a household name. It’s transformed Pennsylvania’s economy and has elevated the state’s energy profile. Recent production figures from the Pennsylvania Department of Environmental Protection illustrate the prolific nature of this play. Production topped 895 billion cubic feet of natural gas for the first six months of 2012, pushing the total production over 2.5 trillion cubic feet since 2008.

How big is this? Pennsylvania has gone from importing 75 percent of its natural gas just five years ago to being a net exporter today.

Thanks to an abundance of this resource, much attention has been focused on its safe and responsible development. However, another area gaining attention is the role natural gas plays in our transportation sector.

With substantial cost saving and environmental benefits, employing more vehicles fueled by natural gas will put us on the road to a cleaner energy future. The increasing attention on natural gas as a transportation fuel is evident in a variety of ways.

Nearly 200 people attended a recent Natural Gas Utilization Conference in State College. Hundreds of residents are attending PA Department of Environmental Protection’s natural gas vehicle workshops.

The Turnpike Commission is engaged in a study looking at the feasibility of liquefied natural gas stations along the turnpike. Even at the recent annual ShaleNET Workforce Forum, the discussion included new careers in transportation related to NGVs and natural gas fueling infrastructure.

Announcements have been made by auto manufacturers such as Chrysler to offer bi-fuel engines on its Ram model, and Honda is increasing production of its natural gas Civic.  Other auto manufacturers such as Ford and GM also offer natural gas fleet options and all heavy duty truck manufacturers now offer natural gas in their lineup.
In addition, engine manufacturers are developing natural-gas powered engines for on-road and off-road equipment.

To support these new natural gas vehicles, drivers need fueling infrastructure. In response, numerous cities and companies have announced plans to open natural gas fueling stations for public and private use nationwide.

And Pennsylvania is leading that charge. Chesapeake Energy has announced the development of several compressed natural gas filling stations in the Northern Tier to fuel its vehicles while opening the stations to the public. EQT has had a public CNG station opened for more than a year in Pittsburgh’s Strip District.

Other companies have recently opened CNG stations in Bucks and Delaware counties and more are being planned throughout the state — including LNG stations.

Building on these infrastructure and auto manufacturing announcements, the Department of Environmental Protection has aggressively been educating the public on its natural gas energy development program.

Through public workshops and via its website, DEP is helping consumers, fleet owners and public officials make informed decisions on utilizing natural gas as a transportation fuel.

To put a finer point on the potential benefits, natural gas use in power generation has helped achieve the lowest carbon dioxide emissions in 20 years, with significantly lower smog and ozone-causing emissions as well. It can similarly help clean up transportation emissions. It’s also cheaper than conventional gas and diesel — by more than 50 percent.

That’s more money kept in our communities and in your pockets. Costs to convert fleets can be recaptured in short order, helping businesses save money, expand their operations and increase their competitiveness in a national and global economy.

Using more natural gas vehicles is a solution to help Pennsylvania and other states reach their clean air goals.  Thanks to an abundance of supply and exciting advances in vehicle and engine production, we can safely and responsibly use this resource to get on the road to a cleaner transportation future.

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GE and Chesapeake Energy Launch CNG In A Box™ System at NACS 2012


GE (GE) and Peake Fuel Solutions, an affiliate of Chesapeake Energy Corporation (CHK), today launched the CNG In A Box™ system, which allows easier adoption of compressed natural gas (CNG) refueling options for large- and small-scale retailers. The solution was unveiled at the National Association of Convenience Stores (NACS) 2012 Annual Show.

Natural gas is an abundant, reliable and cleaner-burning source of energy for consumers and commercial users. A vehicle fleet operator that uses the CNG In A Box system for natural gas fueling instead of traditional gasoline fueling can save about 40 percent in fuel costs1. The CNG In A Box system is a plug-and-play on-site fueling solution that comes with everything retailers need to add low-cost natural gas fuel to their operations quickly and simply. This GE ecomagination™ qualified refueling option provides an easy, lower-cost fueling experience for consumers and a higher-margin solution for facility operators compared to gasoline or diesel.

“In collaboration with Peake Fuel Solutions, GE is developing infrastructure solutions to accelerate the adoption of natural gas as a transportation fuel,” said Mike Hosford, general manager—Unconventional Resources, GE Oil & Gas. “The CNG In A Box system is a unique fueling solution that brings together some of the best innovation from across GE to help fleet owners and everyday drivers realize the benefits of cleaner burning, abundant, more affordable natural gas.”

“After working extensively with GE to develop the CNG In A Box system, we are excited to unveil it at NACS and to the fueling industry overall. Combining Peake Fuel Solutions’ natural gas expertise and GE’s breadth of cross-industry technology capabilities will advance the use of abundant and affordable natural gas fueling solutions,” said Kent Wilkinson, vice president—Natural Gas Ventures, Chesapeake.

The CNG In A Box system compresses natural gas from a pipeline into CNG on-site at a traditional automotive fueling station or industrial location. CNG-powered vehicles such as taxis, buses or small trucks, as well as individual consumer vehicles, can then refill their tanks using a dispenser with the same look and feel as a traditional diesel or gasoline dispenser.

GE ecomagination Vice President Mark Vachon said, “Natural gas is produced at a relatively lower cost and is cleaner burning than gasoline or diesel fuel—natural gas vehicles can show an emissions reduction of up to 80 percent compared to gasoline vehicles2. Through ecomagination, we’ll continue to deliver to the industry innovative solutions that deliver both great economics and environmental performance, and the CNG In A Box system exemplifies this commitment.”

Financing for the CNG In A Box system is offered by GE Capital, providing competitive rates and flexible payment options. By combining an entire acquisition—including equipment, delivery and installation—into a single monthly payment, Peake Fuel Solutions’ customers can structure payments according to their cash flow and eliminate the costs and time associated with paying multiple vendors. With this solution, business owners can work with a single provider to acquire, finance and maintain their CNG In A Box system.

The CNG In A Box system’s 8 foot x 20 foot container is easy to ship and maintain due to its compact design. Its modular and novel design makes it plug-and-play on-site. Wayne, A GE Energy Business, manufactures the dispensers that deliver the CNG from the CNG In A Box system unit to vehicles. These alternative fuel dispensers feature PCI-compliant pay-at-the-pump technology for a familiar and secure fueling experience. Using the same dispenser and payment terminal interfaces as Wayne petroleum dispensers simplifies point of sale integration.

As part of this collaboration between GE and Peake Fuel Solutions, beginning in the fall of 2012 GE will provide more than 250 CNG In A Box systems for natural gas vehicle infrastructure.

To learn more about the CNG In A Box system, visit us online or stop by the Peake Fuel Solutions booth at the NACS show (booth #6101).

Ecomagination is GE’s commitment to imagine and build innovative solutions to today’s environmental challenges while driving economic growth. For more on ecomagination, please visit:www.ecomagination.com.

About GE

GE (GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company’s website at www.ge.com.

About Chesapeake Energy Corporation

Chesapeake Energy Corporation (CHK) is the second-largest producer of natural gas, a Top 15 producer of oil and natural gas liquids and the most active driller of new wells in the U.S. Headquartered in Oklahoma City, the company’s operations are focused on discovering and developing unconventional natural gas and oil fields onshore in the U.S. Chesapeake owns leading positions in the Eagle Ford, Utica, Granite Wash, Cleveland, Tonkawa, Mississippi Lime and Niobrara unconventional liquids plays and in the Marcellus, Haynesville/Bossier and Barnett unconventional natural gas shale plays. The company also owns substantial marketing and oilfield services businesses through its subsidiaries Chesapeake Energy Marketing, Inc. and Chesapeake Oilfield Services, L.L.C. Further information is available at www.chk.com where Chesapeake routinely posts announcements, updates, events, investor information, presentations and news releases.

About Peake Fuel Solutions

Peake Fuel Solutions advances innovative fuel solutions with products and services that create demand for clean, affordable natural gas. A significant focus of PFS is to increase compressed natural gas (CNG) and liquefied natural gas (LNG) infrastructure across the U.S. Other PFS projects include development of on-road and off-road technologies that reduce emissions and dramatically cut fuel expenses for the trucking, maritime, rail and oil and gas industries. An affiliate of Chesapeake Energy Corporation, Peake leverages the expertise of other Chesapeake affiliates to implement many of its fuel solutions. Further information is available at www.peakefuelsolutions.com.

1 Assuming 25,700 miles per year driven, gasoline priced at $3.50/gallon and CNG at $2.09/gasoline gallon equivalent.

2 Calfornia Energy Commission – Consumer Education Center:http://www.consumerenergycenter.org/transportation/afvs/cng.html

ecomagination is a trademark of the General Electric Company

CNG In A Box is a trademark of the General Electric Company

© 2012 General Electric Company—All rights reserved

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50433209&lang=en

MULTIMEDIA AVAILABLE:http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50433209&lang=en

SOURCE- CNGNOW.com

Natural gas vehicles pushed in La.

The push for compressed natural gas vehicles has gained some major traction with commitments from Ford, Chevrolet, Dodge and General Motors, but energy industry experts say federal incentives will be needed if real transformation is to occur.

“It is extremely nice to see that it’s actually here. A lot of times you talk about those things like they’re unicorns,” said Gifford Briggs, vice president of the Louisiana Oil and Gas Association. “But now they’re here …. I think that is a huge first step towards making it (CNG) a little more mainstream acceptable.”

The energy industry has felt good about the direction CNG has taken for a while, Briggs said, but the advent of mass-produced pickups that can run on natural gas or gasoline opens the door on a national scale.

Louisiana has seen CNG advances because of its Haynesville Shale natural gas formation, LOGA, the energy industry, and companies like Chesapeake Energy Corp., Encana Corp., Petrohawk Energy Corp. and Apache Corp., Briggs said. But trying to get Mississippi, Alabama and Florida and other states that don’t have the energy infrastructure to support CNG has been more challenging.

That may be changing. Twenty-two states are part of an effort, led by the governors of Oklahoma and Colorado, to encourage automakers to make more affordable CNG vehicles for state fleets. Oklahoma Gov. Mary Fallin has said the governors hope their efforts will help overcome some of the obstacles automakers face in producing a wider variety of CNG vehicles.

Oklahoma Energy Secretary Michael Ming said if the participating states could buy 5,000 CNG vehicles that would be great, but 1,000 is more likely given the current economic climate.

State government buys only about 40 percent of the public-sector vehicle purchases, Ming said. Municipalities and other political subdivisions account for 60 percent of sales.

If the municipalities — city and parish governments — tag along, the CNG sales could be significantly higher, Ming said.

Chris Knittel, an economist at the Massachusetts Institute of Technology, described the states’ request as “interesting.”

The states presume the CNG vehicles available aren’t that affordable, Knittel said.

“There’s no magic wand that the automakers can wave that makes the CNG vehicles less expensive than gasoline-based vehicles,” Knittel said.

“But there are things that policymakers can do to level the playing field.”

States have to put policies in place with incentives that encourage consumers to switch, he said. Those incentives could involve making CNG fueling stations available, subsidizing vehicles or in-home fueling stations, or by lowering retail prices for natural gas.

Right now, the states aren’t guaranteeing anything to automakers, Knittel said.

“I think the states are just saying that if you build them, we’ll promise the consumers,” Knittel said. “I’m not sure that’s necessarily the case given the current structure of prices and the number of refueling stations around.”

There are roughly 1,000 fueling stations nationwide, and 123,000 CNG vehicles, Ming said.

In Louisiana, CNG vehicles make up less than 1 percent of the cars and trucks on the road, Briggs said. Nationwide, CNG vehicles are around 2 percent of the total.

But that can change if the state, local and federal governments and the private sector — the companies that operate fleets — work together, he said.

“I don’t think the federal government or the state government or the local government can do it by themselves, any more than I think the fleets can do it by themselves,” Briggs said.

But working together can make things happen, Briggs said. Just look at Lafayette, where the city-parish government and private sector have joined to make the state’s most aggressive move to CNG.

In July, Apache opened a public fueling station. The company also converted 15 of its vehicles in Lafayette, part of 300 conversions it will complete by yearend. The city-parish has converted five buses and announced plans to convert its entire fleet.

The city-parish is also trying to form a partnership with the University of Louisiana at Lafayette and the local school boards to convert all their vehicles, Briggs said. Acadian Ambulance is experimenting with CNG for its vehicles.

The East Baton Rouge City-Parish Government recently began looking into converting all of its vehicles to CNG. The city-parish expects the move will slash fuel costs, particularly for heavy-duty pickups and other vehicles that consume more fuel.

Chesapeake spokeswoman Katie McCullin said there is evidence across Louisiana that the state is leading the nation in natural gas usage.

For example, Shreveport has added 14 natural-gas powered buses, and Bossier City has added a second public fueling station. Holmes Honda in Shreveport and Bossier City received its first shipment of the Honda Civic Natural Gas, the only dedicated CNG vehicle now sold in the United States.

In total there are 10 public CNG stations in Louisiana, with more in the planning stages or under construction, McCullin said.

Chesapeake, a major player in the Haynesville Shale and other natural gas plays, is one of the leading proponents of CNG.

The Oklahoma-based company’s Fueling the Future Initiative is an effort to communicate how natural gas can reduce greenhouse gas emissions and end the United States’ dependence on foreign oil, McCullin said.

The company has a billboard off Interstate 10 near the state Capitol extolling the use of natural gas vehicles.

Chesapeake has participated and sponsored natural gas vehicle seminars nationwide and is converting its 5,000-vehicle fleet to CNG, McCullin said. UPS, Verizon Wireless, Waste Management, Disneyland Resorts and AT&T are also converting their fleets to CNG; in 2009, AT&T announced it would spend $350 million to buy 8,000 CNG vehicles.

McCullin said Chesapeake will also invest at least $1 billion over the next 10 years with Clean Energy, 3M Corp., GE and Sundrop Fuels in efforts to increase demand for CNG vehicles.

The work with 3M could revolutionize the design and manufacture of CNG tanks, the most expensive part of the CNG fueling system, McCullins said. The redesign is expected to lead to lighter, more durable and less expensive tanks.

Chesapeake expects these investments to be the tipping point that gives automakers the confidence to increase their production of CNG and liquefied natural gas vehicles, McCullin said.

Still, both Briggs and Knittel said federal incentives are needed if natural gas is to replace oil as a transportation fuel.

The federal government would be the best source for those incentives, Knittel said, because the benefits from CNG vehicles accrue to the nation, not just to the states.

Energy independence and a reduction in climate change help everyone in the United States, regardless of whether a Louisiana resident buys CNG vehicle, he said.

“When the benefits accrue to everyone, the best place to set the policies is at the higher federal level,” Knittel said.

Briggs said if the country wants to see “a monumental shift,” then Congress should pass the Natural Gas Act.

The act replaces CNG incentives that dropped off the books about three years ago, Briggs said.

That was about the same time that Louisiana passed its own CNG vehicle incentives, Briggs said.

Right now, with only the state incentives, a Louisiana consumer can recover the $10,000 it costs to convert to CNG in two years if he drives 15,000 to 20,000 miles a year.

Most people don’t drive that much, Briggs said. But if both federal and Louisiana incentives were in place, converting a vehicle would be free, and consumers would begin saving money instantly.

“You’re saving a dollar, a dollar fifty, two dollars a gallon,” Briggs said.

“That would register with the American public overnight.”

Briggs pays around 45 cents per gallon by fueling up at LOGA’s office station, he said.

At Apache’s Lafayette station, the cost is around $1.79 a gallon, which is still only about half the price of gasoline.

Briggs said there is enormous support for the Natural Gas Act, but he doesn’t expect Congress to pass the legislation anytime soon.

And Knittel said any new policies that involve handing out more money have little chance in Congress these days.

“Still, I could certainly see both sides of the aisle supporting CNG,” Knittel said.

The rhetoric from both parties suggests they would support natural gas vehicles, he said.

Meanwhile, the price of natural gas is lower than it’s ever been, and with shale gas so plentiful, prices are expected to remain low for some time, Knittel said. In the past, natural gas prices have been very volatile; the price might fall but no one expected it to stay there.

Now, natural gas is expected to remain at less than $5 per thousand cubic feet for the foreseeable future, Knittel said.

Briggs said the United States is the Saudi Arabia of natural gas.

“We have more natural gas than we know what to do with. We’re trying to export it,” Briggs said.

The country has so much natural gas that it’s going to run out of storage capacity, Briggs said.

“I think if the federal government … is serious about eliminating our dependency on foreign oil, the only viable alternative is natural gas,” Briggs said.

Congress should pass the Natural Gas Act, he said.

“Let’s get it on the books, and let’s see if we can get started transforming America’s transportation infrastructure” Briggs said.

Source:  The Advocate

Looking to get a cng station? Check us out http://www.fenleynicolenvir.com/cng.html

East Africa to See Natural Gas Boom?

A huge swathe of natural gas reservoirs have been discovered off the East coast of Africa and are set to catapult the region into being a major natural gas player on the world scene.

Already, planned investments worth tens of billions of dollars actually exceed the gross domestic products of some host nations, including the regional powerhouse Kenya, and all the way down to the impoverished Mozambique.

According to the U.S. Geological Survey, East Africa’s coastal region — which stretches out to the Seychelles — holds 441.1 trillion cubic feet of natural gas; that’s approximately 50 percent more than in Saudi Arabia.

“The gas discoveries offshore in Mozambique and Tanzania are large and world-class, with potential for more to come, including prospects for an oil leg,” said Duncan Clarke, CEO of oil consulting company Global Pacific.

“These finds will lead to LNG (liquefied natural gas) plants … and will make the zone akin to the Northwest Shelf in Australia,” which can produce 23 billion cubic meters a year, he told AFP.

Baobab field next to Pemba bay, Pemba, Cabo Delgado, Mozambique.

For example, Houston-based Anadarko in June announced that it had found up to 60 trillion cubic feet of natural gas resources in northern Mozambique, which led to the company proposing an investment of $15 billion to set up LNG facilities. Mozambique’s gross domestic product for 2011 was only $12 billion.

“It will bring a huge flow of foreign direct investment in the region that would contribute to rapid economic growth in the region,” said Silas Olang, east African coordinator from resources watchdog Revenue Watch Institute.

But there will be difficulties in setting up major industry in the region.

“There’s very limited infrastructure in place,” said Tim Dodson, vice president for exploration at Norway’s Statoil on the company website.

Mozambique is, again, a good example of the problems that will be faced. Pemba is a port city, and the closest for offshore drillers. It is located 3,000 kilometres north of the capital of Maputo, linked by dirt roads and with very little housing.

Not only that, but the countries in question lack the skilled workforce to set up such industries, with only 50 mining graduates a year.

Time will tell, but the hope is that the investment and risk of losing said investments will minimise the soon-to-be expected corruption so native to the region. This won’t be a problem solved anytime soon, though — production is planned for five years from now, and may take even longer.

“There could be the expectation that natural gas will be exploited tomorrow and we’ll benefit immediately,” said Olang. But that simply is not going to be the case.

Of course, the green community is a bit split on natural gas. Many see it as an important “bridge fuel” to more truly clean, renewable energy. However, others have shown that it’s effect on the climate is so bad that it’s not worth using as a bridge fuel (even if that’s all it would be used for, which seems debatable in the instance above), and it has also been linked to earthquakes on several occasions and pollution of local water supplies.

I know our readers are also a bit split on natural gas — what are your thoughts about all this?

Source: Clean Technica (http://s.tt/1fcKp)

Rev up the tapping of our own natural gas

Rev up the tapping of our own natural gas

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Chicago Tribune  – Monday, February 06, 2012

If you are going to transform American energy to address the national security and economic risks associated with our OPEC oil dependence, there is only one solution: move our natural gas reserves into transportation, with an emphasis on the heavy-duty truck and fleet-vehicle markets.

Free-market advocates argue that’s bad public policy. They fail to understand that OPEC is far from a free market. They’ll tell you we shouldn’t pick winners and losers in the transportation fuel segments. I say it’s time to pick America over OPEC. Let’s go with anything American. I’m fine with the battery, but remember, it won’t move an 18-wheeler.

Imagine the impact natural gas could have in solving our energy problem. Targeting heavy-duty trucks and fleet vehicles — about 8.5 million in all — could cut our OPEC oil dependence in half in 10 years or less.

Fortunately, while we wait for Washington policymakers to lead, the move to replace more expensive, dirtier OPEC oil, diesel or gasoline with cheaper, cleaner domestic natural gas is gaining private-sector support. At an event in Chicago last week, two leaders in the natural gas vehicle industry — Navistar and Clean Energy Fuels — announced a plan to aggressively develop a comprehensive system to build natural-gas truck engines and provide the infrastructure to fuel them.

Over-the-road trucks tend to run the same routes on the same schedule. Drivers stop in the same places to rest, eat and refuel. Putting natural-gas refueling stations along the major travel routes is a relatively minor logistical issue. Building natural-gas engines for those trucks will be a major job creator.

We’re a country awash in natural gas. Since 2008, the biggest shift in energy resources has been the enormous reserves of natural gas in the vast shale deposits in Texas, Louisiana, Arkansas and Appalachia. New deposits are being tested in places like Iowa and Ohio, but even now, we have a 125-year supply of domestic natural gas literally under our collective feet.

On the world market, natural gas is selling from $12 per million cubic feet in Europe to $16 in the Middle East. The price in the United States? Less than $3 because of our massive reserves.

Getting that natural gas out of the ground and into our rolling stock is another major job creator. A recent study by PricewaterhouseCoopers LLP suggests that by utilizing America’s shale gas resources, “U.S. manufacturers could employ approximately 1 million more workers by 2025.”

America is sending nearly $1 million a minute out of the country to pay for foreign oil. We’re paying about $100 per barrel for foreign oil and, in the case of OPEC oil, often to nations that are hostile to our best interests.

With gasoline at the pump climbing toward $4 per gallon we might have thought energy would have emerged as a top-tier election year issue. In spite of the lingering threat to our economic recovery and our national security, it has not.

For more than four decades, every presidential candidate has said something to the effect of “Elect me, and we’ll be energy independent.” That’s four decades of failed promises.

Once we have serious fuel competition, we can control our energy destiny, have a better grasp on our energy costs and achieve what we’ve been promised for decades. To make that happen, we have to get on our own resources and in this case natural gas is an obvious winner.

T. Boone Pickens is founder and chairman of BP Capital.​

This article was first published by Chicago Tribune.