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  • Good Morning. My name is X . Today, I am representing America’s Natural Gas Alliance as well as the Louisiana Oil and Gas Association (LOGA).\n\nWe’re pleased to be with you today, and to have the chance to talk to you a little bit about the revolutionary changes that natural gas is bringing to our clean energy landscape, and what that means for the transportation sector specifically here in Louisiana. \n\nSome topics that we’ll cover today: \n\n There’s a lot going on with natural gas these days. What’s really behind the talk about a “shale gale” and a revolution in natural gas? \n\n Natural gas is poised to change the energy landscape in communities across the United States. And not just off in the distant future – were talking real impacts, right now in respect to economic growth, environmental benefits, and how the abundance of clean, natural gas can offer affordable and stable pricing and promote our country’s energy security. \n\n What opportunities exist for you, as leaders in this state, to harness Louisiana’s natural gas and help re-power the transportation sector. \n
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  • In 2010, we imported 4.25 BILLION barrels of oil. That means we sent nearly $337 billion dollars overseas – the equivalent of $1,091 for every man, woman and child in America that left our communities and went to other countries.\n\nIt’s time for a change. Approximately 98 percent of the natural gas we use in America comes from our own continent. Making better use of our vast abundance of domestic natural gas is will benefit local economies, reduce our dependence on foreign oil and increase our national security.\n
  • The transportation sector is still overwhelmingly reliant on liquid petroleum products for power, both nationally and locally in Louisiana. \n\nThis data is from the federal Energy Information Agency, in their report “Alternatives to Traditional Transportation Fuels” from 2007. \n\nAs you can see, oil will continue to be the dominant fuel for years to come. \n\nBut as we’ve heard from national advocates like T. Boone Pickens and others, the move toward natural gas isn’t to displace domestic fuels, but can help us wean our dependence on foreign sources of oil. \n\nFrom Energy Information Agency, Alternatives to Traditional Transportation Fuels, 2008\n\nNatural gas volumes calculated using 1,000 Btu/cf.\n
  • Natural gas is something that we have in abundance. It is widely accepted now that we have enough accessible natural gas in throughout our country to literally power America for generations. \n\nHow did this come about? Just a few years ago, it seemed that any expansion of natural gas for power generation would be tied to increased imports of liquefied natural gas. It was stacking up to be yet another case of U.S. dependence on foreign sources of energy.\n\nThat has changed dramatically with the rise of the U.S. shale plays – vast deposits of natural gas located a mile or more below the earth’s surface. Technological developments have allowed us to tap into these previously unreachable resources. And in the past few years, we’ve seen the beginning of what experts call “the shale gas revolution. “ \n
  • You see the major shale plays depicted on the slide here.\n\nNatural gas is now produced in 32 out of 50 states in the U.S., and it creates jobs in every state in our union—more than 2.8 million jobs total.\n\nThe Energy Information Administration, the Potential Gas Committee, MIT and Cambridge Energy Research Associates all have arrived at the same conclusion: Our nation now has enough natural gas right here in America to power our economy for generations. \n\nAnd, these new discoveries have fundamentally transformed the long-term outlook for natural gas supplies and the potential U.S. role as a clean energy leader.\n
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  • EIA estimates of natural gas resources:\n \nReserves:  272.5 TCF (of which 60.6 is shale gas)\nTechnically recoverable shale gas:  862 TCF\nOther technically recoverable natural gas (traditional, tight, coalbed methane): 1408.5\n \nTOTAL natural gas resource base: 2,543 TCF\n
  • Where we see significant opportunity for natural gas is in cleaner, greener transportation. Natural gas vehicles outperform conventional fuels with a significantly higher octane rating, better fuel efficiency and lower operating costs - all while offering dramatic reductions in emissions.\n\nNatural gas vehicles emit 25 percent less CO2 than vehicles that run on traditional gasoline or diesel. And, in many respects it is a complement to electric vehicles, since it is able to power heavier vehicles—city buses, tractor-trailers. So it’s ideal for large transportation fleets. \n\nThat’s where we are focusing our ANGA transportation efforts and where we can have the biggest impact—transitioning some of the busiest and heaviest vehicles on the road.\n
  • \nThis slide is from the same report but shows the breakdown of alternative fuel consumption in the transportation sector. As you can see, both nationally and here in Louisiana, the sector dominated by natural gas products, including CNG, LNG and LPG. \n\nFrom Energy Information Agency, Alternatives to Traditional Transportation Fuels, 2008\n\n\nFrom Energy Information Agency, Alternatives to Traditional Transportation Fuels, 2007\n
  • Natural gas is cleaner on the road than other transportation fuels, emitting 25% less CO2 than vehicles that run on traditional gasoline or diesel, and significantly fewer harmful pollutants such as NOx, SOx and particulates.\n
  • Natural gas is cleaner on the road than other transportation fuels, emitting 25% less CO2 than vehicles that run on traditional gasoline or diesel, and significantly fewer harmful pollutants such as NOx, SOx and particulates.\n
  • Natural gas is cleaner on the road than other transportation fuels, emitting 25% less CO2 than vehicles that run on traditional gasoline or diesel, and significantly fewer harmful pollutants such as NOx, SOx and particulates.\n
  • Natural gas is cleaner on the road than other transportation fuels, emitting 25% less CO2 than vehicles that run on traditional gasoline or diesel, and significantly fewer harmful pollutants such as NOx, SOx and particulates.\n
  • Natural gas is cleaner on the road than other transportation fuels, emitting 25% less CO2 than vehicles that run on traditional gasoline or diesel, and significantly fewer harmful pollutants such as NOx, SOx and particulates.\n
  • Natural gas is cleaner on the road than other transportation fuels, emitting 25% less CO2 than vehicles that run on traditional gasoline or diesel, and significantly fewer harmful pollutants such as NOx, SOx and particulates.\n
  • Natural gas is cleaner on the road than other transportation fuels, emitting 25% less CO2 than vehicles that run on traditional gasoline or diesel, and significantly fewer harmful pollutants such as NOx, SOx and particulates.\n
  • Natural gas is cleaner on the road than other transportation fuels, emitting 25% less CO2 than vehicles that run on traditional gasoline or diesel, and significantly fewer harmful pollutants such as NOx, SOx and particulates.\n
  • Natural gas is cleaner on the road than other transportation fuels, emitting 25% less CO2 than vehicles that run on traditional gasoline or diesel, and significantly fewer harmful pollutants such as NOx, SOx and particulates.\n
  • Natural gas is cleaner on the road than other transportation fuels, emitting 25% less CO2 than vehicles that run on traditional gasoline or diesel, and significantly fewer harmful pollutants such as NOx, SOx and particulates.\n
  • One area where we can make a big difference in cutting emissions right now is with the largest, heaviest and busiest vehicles on the road today. \n\nThey travel the most miles, have significantly lower fuel economy, and use more than 3 and-a half times times as much gasoline as all other vehicles combined. They are also responsible for a disproportionate amount of CO2 and other pollutant emissions.\n\nHeavy and medium duty vehicles and vehicle fleets also tend to have centralized fueling infrastructure, which makes the adoption of natural gas an easier, more economic choice. \n\nNGVs are uniquely well suited here, as current electric and hybrid technologies don’t yet support these larger, heavier vehicles.\n
  • Here’s one example of the impact that this type of switch could have. \n
  • \nA further comparison of North America versus the rest of the world. \n\nWhile development has been slow, it can ramp up extremely quickly, as shown in this example from Italy, where they’ve experienced 37% growth in NGV’s since 2007. \n
  • This chart from the Department of Energy charts fuel prices over the last 10 years. \n\nWhen compared by the standard measure of Gasoline Gallon Equivalent or GGE, CNG has been the lowest cost fuel at the pump during this timeframe, staying below $2.00 per GGE. \n
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  • \n
  • Now to the economics. \n\nNatural gas costs, on average, one-third less than conventional gasoline at the pump. \n\nNGVs are proving to have lower operating and maintenance costs, generating significant vehicle life-cycle savings. Because natural gas burns so cleanly, it results in less wear and tear on the engine and extends the time between tune-ups and oil changes. Many fleets report 15-28% savings compared to diesel fleets.\n\nAnd right now with gasoline prices climbing again, the lower price of CNG becomes even more appealing. \n\nThese prices are from late-March at stations around the country.\n
  • But as we look to grow the use of natural gas vehicles, we don’t just need pipelines, we also need refueling stations where you can fill up a truck with natural gas as easily as you can with diesel fuel. \n\nNatural gas vehicle fueling infrastructure is on the rise in the United States, thanks to a convergence of:\n company efforts to run cleaner, more affordable fleets, and\n local governments growing concerned about air quality, and\n a growing commitment to vehicles that reduce our reliance on foreign oil.\n\nThere are about 110,000 natural gas vehicles on U.S. roads today and around 1,600 natural gas fueling stations So we need to continue to make this infrastructure a priority.\n\nUnder the recent federal stimulus act, the Department of Energy funded 25 different projects for alternative fuel, infrastructure and advanced technology vehicles. 19 of these 25 projects included natural gas, and these commitments include support for 140 new fueling stations.\n\nWe’re also seeing support at the state and local level, where we are particularly encouraged by cooperative efforts between local governments, our own industry, and potential customers. \n
  • Here’s a current snapshot of the current infrastructure in the U.S., as of May 2011. \n
  • The Texas Clean Transportation Triangle is a great example of a project designed to spur CNG development regionally. \n\nIt’s an effort currently underway to create a natural gas transportation corridor connecting four of the five largest metropolitan areas in the State of Texas including Dallas/Fort Worth, Austin, San Antonio, and Houston\n\nIt would be comprised of strategically located natural gas fueling stations along the key routes in order to provide fueling coverage for natural gas vehicles operating along the TCTT. \n \nThis proposed network of natural gas refueling stations will provide an important opportunity for Texas companies and Texas fleet operators to transition to lower cost and domestically produced natural gas.\n
  • Here are some good things to think about if you’re seriously considering natural gas use, particularly in a fleet setting. \n\nAnalyze your fleet\nExisting vehicle types (make, model, year) \nFuel use - gallons per month, miles per gallon \nRefueling behavior - when and where do you fill up currently? \n\nAnalyze your refueling needs\nNeed for time-fill or fast-fill\nNeed for single or multiple CNG refueling sites\nEvaluate existing public infrastructure\n\nIdentify partners\n\nSeek educational and training opportunities\n\nThese questions will give you a good starting point. On the following slides, we’ll also provide some partnership and grant opportunities that can help you find answers. \n
  • \n
  • CNG refueling corridor opportunities in Louisiana juxtaposed with the TCTT proposal. \n
  • \n
  • As you think about the decision to switch to natural gas, this slide shows an assortment of vehicles that can either be purchased with natural gas fueling systems or converted. From Chevy pickups, to the Honda CGX sedan….18-wheelers, public buses and waste haulers. \n\nWe’re seeing more and more NGV options from industry leaders like Chevy, Ford, and Peterbilt trucks, to engine makers like Cummins Westport. \n
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  • As mentioned before, there are moves being made at the national level to pass legislation which would support an increase in NGV infrastructure. \n\nHowever, there are ways that you can help on the state and local level to utilize natural gas immediately, as well as funding programs in place to help you do that. \n\nI wanted to close today by sharing with you some of the policies we are supporting at ANGA to help make it easier for folks like you to choose natural gas for your fleet vehicles\n\nTax Incentives\nCurrently, 35 states and many regional and local governments offer tax incentives that support the adoption of natural gas vehicles. Some states also permit certain alternative fuel vehicles to operate in HOV carpool lanes during rush hour.\n\nAnd, federal legislation is under consideration in Washington that would further encourage this progress. The NAT GAS Act would significantly expand incentives for natural gas vehicles and has strong bipartisan support in both the House and Senate. This legislation would:\n Promote the domestic production of natural gas vehicles by allowing manufacturers to expense the cost of building new manufacturing capacity.\n Provide tax credits for the installation of natural gas pumps at service stations and for at-home fueling systems.\n Provide tax credits for the purchase of natural gas vehicles.\n
  • A comparison of Louisiana’s incentive program compared to both the federal government and other leading states. \n
  • A comparison of Louisiana’s incentive program compared to both the federal government and other leading states. \n
  • Some additional programs available to you in Louisiana. \n
  • Regarding the Recovery Act dollars mentioned before, there’s still ARRA funding available in Louisiana that could potentially be used for CNG. \n\nRoughly $3 million dollars is available for municipalities in the state and DNR has confirmed that 100% of those funds will go to CNG projects, but only toward vehicles and not infrastructure.\n
  • \n
  • \n
  • Here are some good things to think about if you’re seriously considering natural gas use, particularly in a fleet setting. \n\nAnalyze your fleet\nExisting vehicle types (make, model, year) \nFuel use - gallons per month, miles per gallon \nRefueling behavior - when and where do you fill up currently? \n\nAnalyze your refueling needs\nNeed for time-fill or fast-fill\nNeed for single or multiple CNG refueling sites\nEvaluate existing public infrastructure\n\nIdentify partners\n\nSeek educational and training opportunities\n\nThese questions will give you a good starting point. On the following slides, we’ll also provide some partnership and grant opportunities that can help you find answers. \n
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  • \n
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  • \n
  • And here’s a full list of resources on NGV’s online. \n
  • Any questions?\n

Transcript

  • 1. Natural
GasClean Affordable Abundant American Gifford Briggs www.loga.la
  • 2. IntroductionsSpeakers •Gifford Briggs, LOGA •Joey Durel, LCG •Frank Chapel, ApacheExhibitors •Hollingsworth Ford •Service Chevrolet •Control Tech
  • 3. Why Natural Gas? Why Now?
  • 4. Our Dependence on Foreign Oil• How much do we use? – 4.25 billion barrels imported in 2010• How much does it cost? – $337 billion spent on imported oil in 2010 – $1,091 for each person in America – In 2009, energy imports made up nearly 60% of our trade deficit• Where does the money go? – Among the top countries we import from: Venezuela, Saudi Arabia, Nigeria, Russia, Algeria, Angola and Iraq.
  • 5. Petroleum Tops Transportation Portfolio Alternative Fuel 0.06% Gasoline Diesel Alternative Fuel 24% 34% 66% 76% U.S. Louisiana Gasoline – 140.6 Billion GGE Gasoline – 2.1 Billion GGE (65.6%) Diesel – 44.5 Billion GGE Diesel – 1.1 Billion GGE (27.9%) Alt. Fuels – .4 Billion GGE Alt. Fuels – .002 Billion GGE (0.1%) Equivalent to 21.5 Tcf or 58.9 Bcfd Equivalent to 376.7 Bcf or 1.03 BcfdSource: Energy Information Administration (EIA), 2008, Excludes Oxygenates
  • 6. ABUNDANT
  • 7. The Shale Gas Revolution Cody Bakken Gammon Mowry Antrim EIA: 2011 Baxter-Mancos Marcellus/ Mancos Niobrara Devonian/Utica 862TCF shale Pierre Lewis Mulky New Albany Fayetteville 2,543TCF total Woodford Barnett- Woodford Barnett Floyd-Neal Haynesville 67% INCREASE in just three years Eagle Ford 





















Source: EIA Annual Energy Outlook, 2008 to 2011
  • 8. THE ADVANCED TECHNOLOGY OF HYDRAULIC FRACTURING ANDLATERAL DRILLINGHAS CHANGED THETHE DOMESTIC OILAND GAS INDUSTRY
  • 9. Abundant by Any Estimate Estimates of U.S. Recoverable Natural Gas (TCF – trillion cubic feet)) 2,836 Potential Shale Gas Resources 2,543 Potential Traditional Resources* Proved Reserves 2,170 2,081 2,102 2,100 1,532 1,314 1,312 1,268 Potential Gas Committee Other EstimatesSources:ICF: As reported in BPC: http://www.bipartisanpolicy.org/projects/energy/naturalgas (Task Force on Ensuring Stable Natural Gas Markets)EIA: See http://www.eia.gov/analysis/studies/worldshalegas/PGC: Potential Gas Committee’s Advance Summary and press release of its biennial assessment; see www.potentialgas.orgCERA: IHS CERA, 2010, Fueling North America’s Energy Future: The Unconventional Natural Gas Revolution and the Carbon AgendaMIT: MIT Energy Initiative, 2010, The Future of Natural Gas, interim report
  • 10. US Consumes 23 Tcf per day Abundant by Any Estimate Electric Power - 7.4 Tcf Industrial - 6.6 Tcf Residential - 5.0 Tcf Commercial - 3.2 Tcf Plant Fuel - 1.3 Tcf Estimates of632 Bcf Pipeline - U.S. Recoverable Natural Gas (TCF – trillion cubic feet)) Vehicle - 32.8 Bcf 2,836 Potential Shale Gas Resources 2,543 Potential Traditional Resources* Proved Reserves 2,170 2,081 2,102 2,100 1,532 1,314 1,312 1,268 Potential Gas Committee Other EstimatesSources:ICF: As reported in BPC: http://www.bipartisanpolicy.org/projects/energy/naturalgas (Task Force on Ensuring Stable Natural Gas Markets)EIA: See http://www.eia.gov/analysis/studies/worldshalegas/PGC: Potential Gas Committee’s Advance Summary and press release of its biennial assessment; see www.potentialgas.orgCERA: IHS CERA, 2010, Fueling North America’s Energy Future: The Unconventional Natural Gas Revolution and the Carbon AgendaMIT: MIT Energy Initiative, 2010, The Future of Natural Gas, interim report
  • 11. TRANSPORTATION
  • 12. Natural Gas Dominates Alt Fuel Portfolio Electricity 2008 Consumption Electricity CNG E85 E85 CNG LPG U.S. – 430,329,000 Louisiana – 2,051,000 gasoline gallon equivalents (gge) gasoline gallon equivalents (gge)Source: EIA Excludes Biodiesel, estimate for 2008 not available
  • 13. Cleaner for VehiclesCompared to gasoline or diesel, NGVs:Source: NGVAmerica, U.S. EPANote: Comparison for replacement of diesel vehicle with a NGV
  • 14. Cleaner for VehiclesCompared to gasoline or diesel, NGVs: Reduce CO2 emissions 20-30% Reduce CO emissions 70-90% Reduce NOx emissions 75-95% Reduce Particulate Matter emissions 90% Reduce VOC emissions 89%Source: NGVAmerica, U.S. EPANote: Comparison for replacement of diesel vehicle with a NGV
  • 15. Benefits: Heavy-Duty Vehicles Miles Traveled Fuel Economy Fuel Consumed (average per year) (average mpg) (average gallons per year) Heavy-Duty Vehicles Vans, Pickups & SUVs Passenger CarsSource: EIA Annual Energy Review 2009
  • 16. Benefits: What We Can Do Converting just one … offers the emissions heavy-duty waste truck reduction equivalent of from diesel to natural taking 325 cars off the gas… road.
  • 17. Natural Gas Opportunity Natural Gas Vehicles by Continent Italy as an Example Natural Gas Vehicles (Millions) • ~600,000 NGVs 6.0 • 37% growth since 2007 • NGVs have 7% market share of 4.5 all new vehicles purchased • Cost of CNG is 50% to 60% 3.0 less expensive than gasoline • Government incentives 1.5 • Imports 89% of natural gas 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Asia Europe N. America S. America Fiat Qubo Natural Power AfricaSource: IANGV, NGVA Europe, Fiat
  • 18. Savings On the Road and at the Pump Average U.S. Retail Fuel Prices Per Gasoline Gallon Equivalent (GGE) U.S. Average Retail Fuel Prices $5.00 $3.75 Propane Cost
per
GGE E85 $2.50 B99/B100 B20 Gasoline Diesel $1.25 CNG $0 4/10/00 10/9/00 6/4/01 10/22/01 2/11/02 4/15/02 7/22/02 10/28/02 2/10/03 12/8/03 3/8/04 6/14/04 11/15/04 3/21/05 9/1/05 1/1/06 5/24/06 9/4/06 2/21/07 7/3/07 10/2/07 1/1/08 4/1/08 7/1/08 10/1/08 1/30/09 4/15/09 7/31/09 10/26/09 1/29/10 4/12/10 7/23/10 10/24/10 1/25/11 Source: DOE, Alternative Fuels and Advanced Vehicles Data Center
  • 19. Problem?OR
  • 20. The Chicken
  • 21. Nat Gas vs. Conventional Gasoline On average, CNG costs 44% less than gasoline Seattle CNG - $1.72 Gas - $3.93 Bismarck CNG - $1.95 Gas - $3.84 Detroit CNG - $1.94 San Francisco Gas - $4.04 CNG - $2.45 Gas - $4.19 New York Salt Lake CNG - $2.60 City Gas - $3.99 CNG - $1.27 Gas - $3.63 Los Angeles Wash., DC CNG - $2.70 Denver CNG - $2.40 CNG - $2.50 Nashville Gas - $4.31 CNG - $1.63 Gas - $3.88 Gas - $3.67 Little Rock Gas - $3.74 CNG - $1.60 Gas - $3.59 San Diego CNG - $2.90 Gas - $3.97 Atlanta CNG - $2.60 Gas - $3.89 Dallas CNG - $2.40 Gas - $3.59 Baton Rouge, Ft. Lauderdale LA CNG - $2.19 CNG - $1.69 Gas - $3.83 Gas - $3.53Source: CNG prices captured in June 2011 by CNGPrices.comGas prices reflect city average on June 2, 2011 from GasBuddy.com
  • 22. Infrastructure: Refueling Stations Natural Gas Refueling Stations (current or planned as of July 2010) 15 3 2 1 12 2 9 2 3 17 100 21 8 13 27 23 RI – 5 1 12 CT – 13 11 84 5 243 25 9 1 DE – 1 29 DC - 2 2 13 10 4 17 0-10 stations 46 50 11 4 4 10‐19 27 20-49 2 5 33 50
or
more 9 1 17 Source: NGV America
  • 23. U.S. Natural Gas Refueling Infrastructure • CNG Stations - 899 Total Public Access Private Access – 382 Public access stations (~42%) 900 – 517 Private access stations (~58%) 675 • LNG stations - 44 Total 450 – 15 Public access stations (~34%) 225 – 29 Private access stations (~66%) 0 CNG LNGSource: DOE, EIA, AFDC; figures as May 12, 2011
  • 24. Texas Clean Transportation Triangle • Establish fueling infrastructure at regular intervals on interstate exists along I-35, I-10, and I-45 to service long-haul transportation vehicles • Anchor stations proximal to urban settings to act as hubs for more localized traffic • 15 stations offering public LNG and CNG located at current retail facilities along the interstates • Cooperative effort between natural gas producers, fleet customers and retail partners
  • 25. Louisiana Plan for Future FuelingInfrastructure – the “Blue Boot” u t 71 t u 371 u t 79 Conceptual Station Location Plan u t 82 u t 65 u t 61 Louisiana CNG Stations Target LCNG Stations City of Bossier City 2580 E Texas St t u 149 ! ( Anchor Stations Bossier City, LA 71111 t u 165 ! ( Growth Stations SporTran Shreveport Priority: 1 u t 63 " ) Lake Providence Priority: 3 Target CNG Stations 1115 Jack Wells Blvd Shreveport, LA 71107 Bossier City " ) Growth/Anchor Stations Population: 56,461 Ruston Priority: 2 Monroe t u 165 t u 425 u t 49 " ) Growth Stations Population: 53,107 Shreveport Trash Trucks 1501 Kings Highway ! ( ll l " ) u t " ) Growth/Satellite Stations " ) 51 Shreveport, LA 71103 Petrohawk l l Hwy 157 and Sligo Rd Haughton, LA 71112 u t 80 § ¦ ¨ " ) Satellite Stations l Monroe Priority: 1 20 Planned Shreveport City of Bossier City 4520 Barksdale Blvd l New Orleans Shuttle u t Population: 200,145 79 Bossier City, LA 71112 t u l EXCO Resources Incorporated u t 80 In Service l 167 448 Ramsey Hill Rd Chatham, LA 71226 u t 49 l Private Relay Station ¦ ¨ § 49 Petrohawk l 6797 Louisiana 175 Frierson, LA 71027 l E. Bert Kouns Near Yokem Toyota Shreveport, LA 71105 t u 425 Public u t 65 u t 84 t u165 u t 61 Red River - Encana u t 84 1392 Hwy 84 East Coushatta, LA 71019 u t 96 " ) u t 51 Natchitoches Priority: 3 t u § ¦ ¨ 167 t u 171 55 t u 165 u t 84 t u 167 Alexandria Population: 46,342 u t 98 l u t 98 Chevron Fort Polk Priority: 3 5215 MacArthur Alexandria, LA 71302 " ) t u 167 u t 61 ¦ ¨ §49 t u 190 t u167 Baton Rouge Metro Airport u t 71 8420 Veterans Memorial Blvd Baton Rouge, LA 70807 u t 51 t u 165 Baton Rouge Water Works East Baton Rouge Department of Public Works 2520 Souter Dr t u 171 Opelousas Priority: 2 331 Chippewa St Baton Rouge, LA 70815 Hammond Priority: 2 " ) Baton Rouge, LA 70805 u t 96 l " ) t u 190 Baton Rouge Priority: 2 lll "l ) Entergy Gas Operations 8968 S Choctaw Dr § ¦ ¨ 12 Baton Rouge, LA 70815 ¦ ¨ § 10 § ¦ ¨ 55 t u 190 Apache- Lafayette Slidell Priority: 1 Lafayette Priority: 1 Lafayette, LA 0 Entergy Gas Operations New Orleans Lake Charles Priority: 1 Jennings Priority: 3 4637 Florida Blvd Baton Rouge ! ( u t 90 ! ( "§ )¨ ¦ 10 ! ( l l Baton Rouge, LA 70805 Population: 227,818 Population: 484,674 Lafayette t u Lafayette Consolidated Government § ¦ ¨ 167 Lake Charles 10 u t 90 § ¦ ¨ 10 Population: 71,757 Population: 110257 East University Avenue Lafayette, LA 0 Metairie Priority: 1 u t 69 " ) New Iberia Priority: 2 Kenner u t 61 "! )( u t 90 New Iberia Population: 70,517 u t 90 New Orleans Priority: 1 Population: 32623 · Projection: WGS84 Date: June 1, 2011 Compiled by: Elizabeth Ellis Marrero Encana Natural Gas Inc. Population: 36,165 Denver, Colorado Metairie Data Sources: ESRI Interstates Houma Priority: 2 Petroleum Graphics This Product was prepared by: Encana Natural Gas Inc. Houma " ) Population: 146,136 370 17th Street Denver, CO 80202 This map is for illustrative purposes only and is not a legally Population: 32,393 recorded plan or survey and is not intended to be used for such purposes. Do not rely on this map as being a precise indicator of routes, land boundaries, locations of features nor as a guide for navigation. Encana Natural Gas Inc. makes no warranty, cannot guarantee, Basemap and does not assume any liability or responsibility whatsoever for the quality and accuracy of the data and information contained Interstates herein. Users of the data and information contained herein do so at their own risk. In no event shall Encana Natural Gas Inc. Primary Highway be liable for injury, expenses, profits, loss or damage, direct, incidental or consequential or any other pecuniary loss arising out of the use or inability to use the data and information Secondary Highway contained herein. Usage, manipulation, or reproduction, in any form, of the data City Streets and information contained herein is prohibited without permission of Encana Natural Gas Inc. www.encana.com CityLimits States 0 12.5 25 50 ! Port Fourchon Priority: 2 ( S:EHS_US_DivisionGIS_TeamNGE2011AlexineLACNGMapMXD Miles
  • 26. ChevronPolk Priority: 3 5215 MacArthur Alexandria, LA 71302 " ) t u 167 u t 61 ¦ ¨ § 49 t u 167 u t 71 Baton Rouge Metro Airport 8420 Veterans Memorial Blvd Baton Rouge, LA 70807 t u 165 Baton Rouge Water Works East Baton Rouge Department of Public Works 2520 Souter Dr t u 171 Opelousas Priority: 2 331 Chippewa St Baton Rouge, LA 70815 " ) Baton Rouge, LA 70805 t u l Entergy Gas Operations lll "l 190 Baton Rouge Priority: 2 ) 8968 S Choctaw Dr Baton Rouge, LA 70815 Apache- Lafayette ¦ ¨ § 10 Jennings Priority: 3 Lafayette Priority: 1 Lafayette, LA 0 Entergy Gas Operations rity: 1 4637 Florida Blvd Baton Rouge ! ( "§ )¨ ¦ 10 ! ( l l Baton Rouge, LA 70805 Population: 227,818 Lafayette t u 167 Lafayette Consolidated Government Lake Charles East University Avenue Population: 71,757 Population: 110257 Lafayette, LA 0 " ) New Iberia Priority: 2 Kenner New Iberia Population: Population: 32623 Houma Priority: 2 Houma " ) Population: 32,393
  • 27. Corridor Opportunities Public CNG stations Private CNG stations
  • 28. The Egg
  • 29. Natural Gas VehiclesSource: Natural Gas Vehicles for America (NGVA)
  • 30. Lafayette Consolidated Government
  • 31. Apache
  • 32. A U S T R A L I A A R G E N T I N A C A N A D A E G Y P T N O R T H 
 S E A U . S . 
 C E N T R A L U . S . 
 G U L F 
CNG
Fleet
Seminar
&
Workshop LafayeTe,
Louisiana October
5,
2011
  • 33. Growth
of
Natural
Gas
as
a
TransportaYon
Fuel
  • 34. Apache
NGV
Missionu Apache’s
mission
is
to
promote
natural
gas
as
the
alterna6ve
transporta6on
fuel
 of
choice
.
This
ini6a6ve
includes
increasing
the
number
of
natural
gas
vehicles
 in
our
fleet
as
well
as
expanding
the
natural
gas
fueling
sta6on
infrastructure.

  • 35. Apache
U.S.
CNG
Fleet
Vehicles
  • 36. Apache
U.S.
CNG
Fleet
Vehicles 20% 35% 48% 61% 74% 88% Gasoline CNG
 80% 65% 52% 39% 26% 12% 2010 2011 2012 2013 2014 2015%
CNG 
12% 
26% 
39% 
52% 
65% 
80%
  • 37. Apache
CNG
Fueling
StaYons
  • 38. Apache
CNG
Fueling
StaYons
  • 39. Apache
Employee
CNG
Vehicle
IncenYve
Programu Program
Elements:u All
full‐Yme
employees
who
purchase
a
new
dedicated
CNG
vehicle
or
convert
a
 new
or
used
vehicle
will
receive
free
CNG
for
their
next
$5,000
of
CNG
fuel
 purchases.u Louisiana
and
Oklahoma
employees
will
also
receive
a
state
income
tax
credit
for
 50%
of
the
addiYonal
cost
of
the
CNG
dedicated
or
converted
vehicle.u Texas
and
New
Mexico
employees
will
receive
50%
of
the
addiYonal
cost
of
the
 CNG
dedicated
or
converted
vehicle
from
Apache
as
these
states
offer
no
 alternaYve
fuel
incenYves.



  • 40. Apache
Employee
CNG
Vehicle
IncenYve
Programu Program
Elements:u All
full‐Yme
employees
who
purchase
a
new
dedicated
CNG
vehicle
or
convert
a
 new
or
used
vehicle
will
receive
free
CNG
for
their
next
$5,000
of
CNG
fuel
 purchases.u Louisiana
and
Oklahoma
employees
will
also
receive
a
state
income
tax
credit
for
 50%
of
the
addiYonal
cost
of
the
CNG
dedicated
or
converted
vehicle.u Texas
and
New
Mexico
employees
will
receive
50%
of
the
addiYonal
cost
of
the
 CNG
dedicated
or
converted
vehicle
from
Apache
as
these
states
offer
no
 alternaYve
fuel
incenYves.



  • 41. Natural
Gas
TransportaYon
Fuels’
Market
Driversu Texas
Clean
TransportaYon
Triangle
(TCTT)—Senate
Bill
20
signed
into
law
 which
allocates
$20
million
for
the
next
two
years
for
the
purchase
or
 repower
of
natural
gas‐powered
heavy‐duty
vehicles
and
for
natural
gas
 fueling
staYons’
construcYon.
(EffecYve
Sept.
1.)u President
Obama’s
“Federal
Fleet
Performance
Memorandum”‐‐Directs
 that
all
light‐duty
Federal
government
vehicles
must
be
100%
alternaYve
 fuel
vehicles
by
year‐end
2015.u Federal
incenYves—30%
(up
to
$30,000)
income
tax
credit
for
natural
gas
 fueling
equipment
and
Federal
excise
tax
credit
to
natural
gas
fuel
sellers
of
 50
cents
per
GGE
(gasoline
gallon
equivalent).u State
incenYves—35
states
offer
some
type
of
natural
gas
vehicle
and/or
 natural
gas
fueling
staYon
incenYves.
u Fuel
savings—Natural
gas
pump
prices
are
now
typically
$1.50
to
$2.00
less
 than
gasoline/diesel.
(30%
to
50%
savings)u Fueling
staYon
growth—The
U.S.
now
has
904
CNG
and
44
LNG
staYons.
 Since
mid‐2010,
staYons
under
construcYon
have
increased
by
255%.


  • 42. 2011
Milestones/Achievementsu 35
U.S
airports
now
have
natural
gas‐powered
vehicles.u 125
transit
agencies
are
operaYng
over
10,000
natural
gas
buses.
20%
of
all
 new
bus
orders
are
natural
gas.u Over
3,000
natural
gas‐powered
school
buses
are
in
operaYon.
u AT&T,
as
of
year‐end
2010,
is
operaYng
3,487
natural
gas‐powered
vehicles
 in
538
ciYes.
Their
goal
is
8,000
natural
gas
vehicles
by
year‐end
2015.u Waste
Management
recently
added
its
1,000th
refuse
truck
fueled
with
 natural
gas.
80%
of
their
refuse
truck
purchases
are
now
natural
gas‐ powered.u Cummins
Westport
celebrates
producYon
of
their
10,000th
ISL
G
natural
gas
 engine.
They
have
now
produced
a
total
of
30,000
natural
gas
engines.u The
Honda
Civic
GX
has
been
designated
the
“Greenest
Vehicle
of
the
Year”
 for
the
eighth
straight
year.

  • 43. Nuts & Bolts
  • 44. Nuts & Bolts How much is it going to cost for my new fleet vehicles? What is the expected gas mileage? Where am I going to fill up? How much does CNG cost? What about the maintenance and service? Where and how and I going to buy my vehicle and what vehicles can I purchase?
  • 45. Vehicles There are 2 types of CNG vehicles – Dedicated and Bi-fuel  Dedicated – These vehicles have been designed for CNG use and can only be powered by CNG. They are ordered from the OEM (Original Equipment Manufacturer) or can be converted from existing vehicles. They are less flexible than a bi-fuel vehicle but have benefits of intentional design. Eligible for Federal and State Incentives  Bi-Fuel – These vehicles have the ability to switch from gasoline to CNG and back as needed. These vehicles are light-medium duty fleet and consumer vehicles that have been “Converted” post-plant. Eligible for State Incentives only
  • 46. Policies for a Clean Transportation Future • State and Local Tax Incentives – Offered in 35 states and by many regional and local governments • The NAT GAS Act (re-filed 2011) – Tax credits for vehicle purchases – Tax credits for installation of pumps – Incentives for building NGV manufacturing capacity • Funding for new R&D
  • 47. Leading States - NGV Incentives
  • 48. Leading States - NGV Incentives
  • 49. Grant ProgramsFederal GrantsU.S. Department of Energy - Clean Cities Supports public and private partnerships that work to achieve petroleum displacementprogram through technologies including CNG and LNG. Clean Cities “helps all parties identify mutual interests while meeting their individual objectives such as the need to improve air quality, comply with federal fleet regulations, or identify and create markets for vehicles or fuel.” Two local partnerships supported by this program include the Greater Baton Rouge Clean Cities Coalition and the Southeast Louisiana Clean Fuels Partnership.DOT Congestion Mitigation and Air Generally limited to projects in non-attainment areasQuality Improvement Program (CMAQ)DOE State Energy Program (SEP) Clean Cities program which supports alternative fuel vehicle and infrastructure.EPA Supplemental Environment Project Diesel Emissions Reduction Program (DERP): EPA program which assistsand DERA Grants government agencies, school districts and other parties to replace older diesel engines. •Repower: 75% of cost Diesel Truck Retrofit and Fleet Modernization Program: EPA program provides grants to states to fund fleet modernization programs, with preference to be given to •Vehicle replacements: 25% of cost ports and other major hauling operations. Clean School Bus Program: EPA program provides grants to school districts and related organizations for the replacement, repower or retrofit of school buses, the purchase of alternative fuels for school buses and alternative fuel infrastructure.Federal Transit Administration (FTA) Funds transit projects such as purchasing or leasing clean fuel buses and/or constructingClean Fuels Grants or leasing clean fuel bus facilities.Federal Aviation Administration (FAA) National program to reduce airport ground emissions at commercial service airportsVoluntary Airport Low Emissions (VALE) located in designated air quality nonattainment and maintenance areas,Program
  • 50. Grant ProgramsLouisiana State GrantsClean-Burning Motor Vehicle Fuel Effective Date: Jan. 1, 2009Property Income Tax Credit The State of Louisiana offers an income tax credit of 50% of the cost to convert a vehicle to use an alternative fuel, 50% of the incremental cost of a factory-equipped alternative fuel vehicle, and 50% of the cost of alternative fuel refueling property. compressed natural gas, liquefied natural gas Update on the ARRA funds. I talked to Gifford today and he attended a meeting today on the balance of ARRA funding that could potentially be used for CNG. He said there is about $3 million dollars available for municipalities. DNR has confirmed that 100% will go to CNG projects but only to vehicles (no infrastructure). http://dnr.louisiana.gov/assets/TAD/programs/solicitations/state_incentives_2009.pdf
  • 51. Vehicle PayoutConversion EconomicsIncremental Vehicle Cost $10,000Less: State Tax Credit $5,000Net Vehicle Conversion Cost $5,000Vehicle - Gallons per Year 2,000x Fuel Savings, $/GGE $1.00Savings per Year $2,000Payout 2.5 Years Based on 24,000 miles/year @12 MPG
  • 52. Vehicle Payout Conversion Economics Incremental Vehicle Cost $10,000 Less: State Tax Credit $5,000After payoutConversion Cost Net Vehicle an additional $5,000 $7000 willbe saved on fuel alone over a 6 year Vehicle - Gallons per Year 2,000vehicle xlife under these assumptions Fuel Savings, $/GGE $1.00 Savings per Year $2,000 Payout 2.5 Years Based on 24,000 miles/year @12 MPG
  • 53. Price Sensitivity Gasoline & Diesel  CNG  About 75% of the price of  The price of natural gas is gasoline and diesel is a smaller percentage of the related to the price of oil price of CNG  At $80/Bbl, the price of  At $5/MMBtu, the price of gasoline is about $2.50/gal CNG is about $1.50/GGE  At $120/Bbl, the price of  At $7.50/MMBtu, the price gasoline is about $3.45/gal of CNG is about $1.80/GGECNG has much less exposure to price spikes
  • 54. How to begin on the local level? • Analyze your fleet • Analyze your refueling needs • Identify partners • Seek educational and training opportunities
  • 55. How to Convert
  • 56. Heavy Duty VehiclesDedicated CNG or LNG Horsepower 250-320 HP Torque up to 1000 lb-ft NOx .2 gm/bhp-hr PM Emissions .01 gm/bhp-hr ISL G (North America)
  • 57. 2 Possible Approaches for CNG • Convert / Retrofit Existing Vehicles – Benefits • Utilize existing vehicles • largest expense already realized • Immediate implementation – Challenges • Availability of kits • decreased vehicle life reduces economic benefit • Time without vehicles • Purchase New Vehicles – Benefits • Realize full economic benefits • Kit availability • Ease of ordering – Challenges • Purchase schedule • Delay in implementation
  • 58. CNG Vehicle Equipment
  • 59. LOGA’S NGV
  • 60. Resources• America’s Natural Gas Alliance (ANGA) http://www.anga.us/• Alternative Fuel Stations and Prices http://www.afdc.energy.gov/afdc/stations/advanced.php/ http://www.altfuelprices.com/ http://www.cngprices.com/ http://www.fueleconomy.gov/• US DOE Alternative Fuels & Advanced Vehicles Data Center http://www.afdc.energy.gov/afdc/• Clean Vehicle Foundation http://www.cleanvehicle.org/index.shtml/• Natural Gas Vehicle Institute http://www.ngvi.com/• Natural Gas Vehicles for America http://www.ngvc.org/index.html/
  • 61. QUESTIONS
?