Natural Gas Vehicle Infrastructure Market Fact Pack


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An "info pack" full of charts, facts, figures and quotes about the infrastructure for natural gas (NG) vehicles in the U.S. This pack was created by FC Business Intelligence who is hosting a major conference on NG vehicles in Houston, TX in February of 2013 (

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Natural Gas Vehicle Infrastructure Market Fact Pack

  1. 1. NGV INFRASTRUCTURE FACT PACK 2012Natural Gas Vehicle Infrastructure Market Fact Pack
  2. 2. NGV INFRASTRUCTURE FACT PACK 2012 | PAGE 2 2nd Natural Gas Vehicle InfrastructureNatural Gas Vehicle Infrastructure Market Overview Conference & Exhibition For more info please visit www.ngvevent.comThe IEA’s June 2011 report heralded “the golden age of gas” (IEA, 2011). Improvements in extractiontechnology are making it possible to tap previously inaccessible sources of supply, and the high price ofoil compared with Natural Gas is providing companies with the incentives to do so. Shifting to Natural WA MT MEGas is not a carbon neutral approach, but in the short term provides a path toward a less ND VTcarbon-intensive energy future. OR MN NH ID SD WI MA NY RINatural Gas has great potential as a transportation fuel, and many countries have already shifted to WY MI CTpromote its use. NGVs have been available since the 1930s. Today’s NGVs do not represent a disruptive IA PA NE NJtechnology, as little technological innovation has been required to modify existing vehicles to burn NV IL OH UT IN MD DENatural Gas as a transportation fuel. Rather, Natural Gas is a disruptive resource, where recent Washington DC CO WV CA VAinnovations in hydraulic fracturing have allowed for substantial domestic Natural Gas resources to be KS MO KYaccessed, at a cost far less than that of gasoline and diesel produced from imported oil, has changed NCthe playing field for NGVs in North America. OK TN AZ NM AR SC MSIt’s clear that the NGV market is at a tipping point, where operating cost advantages, lower emissions AL GAand energy independence considerations are combining to lead public and private sector players to TXpromote CNG & LNG as a transportation fuel. LA FL ALIn this mini report we look a little further into the major challenge impacting the development of thismarket, the lack of refuelling infrastructure. We will share the perspectives of key stakeholders fromacross the industry on how they are working to overcome this hurdle and grow the NGV market inNorth America. United States’ global ranking AT&T’s investment Federal funding for Time taken to repay fuel/station (No. of NGVs) in NGVs Home fuelling research capital costs/trucks for Dillon Transport’s NG stations 14 $565 million $30 million 50 months
  3. 3. NGV INFRASTRUCTURE FACT PACK 2012 | PAGE 3 2nd Natural Gas Vehicle InfrastructureConcentration of NGV fuelling stations in the US Conference & Exhibition For more info please visit 47 CALIFORNIA UTAH COLORADO, OKLAHOMA, NEW YORK Ranked 1st nationally for NG Ranked 3rd nationally for NG PENNSYLVANIA and TEXAS Ranked 2nd infrastructure. Pioneer in air infrastructure. 9% of CNG All strongly promote nationally for NG LNG stations are operating nationwide quality policies and provides vehicles (11,000) in the United infrastructure investments infrastructure incentives for converting to States are located here. alternative WA vehicles and fuel infrastructure construction. 988 MT ME ND OR VT MN NH CNG stations are operating nationwide ID SD WI MA NY MI RI WY CT IA PA NV NE NJ OH UT IL IN MD DE Washington DC CA CO WV KS MO VA KY NC TN AZ OK NM AR MS AL GA SC 180,000 conventional stations are operating nationwide TX LA AL Legend: Natural Gas Stations FL None 51-100 10 or less 101-200 11-20 201-300 21-50Source:
  4. 4. NGV INFRASTRUCTURE FACT PACK 2012 | PAGE 4 2nd Natural Gas Vehicle InfrastructureAmerica’s natural gas highway Conference & Exhibition For more info please visit Clean Energy co-founder T. Boone Pickens, a $150 million investment by Chesapeake Energy Corporation, and investments by additional international investors: Temasek Holdings, Seatown Holdings and RRJ Capital Master Fund.Source:
  5. 5. NGV INFRASTRUCTURE FACT PACK 2012 | PAGE 5 2nd Natural Gas Vehicle InfrastructureNGV infrastructure global map Conference & Exhibition For more info please visit 1 – 10 11 – 25 USA 10. UKRAINE 7. CHINA 14. USA Natural gas vehicles: 200,000 Natural gas vehicles: 450,000 Natural gas vehicles: 112,000 Refuelling stations: 285 Refuelling stations: 1,350 Refuelling stations: 1,000 (December 2006) (December 2009) (December 2010) 4. BRAZIL Natural gas vehicles: 1,664,847 Refuelling stations: 1,725 (December 2010) 6. ITALY 9. THAILAND 8. COLUMBIA Natural gas vehicles: 730,000 Natural gas vehicles: 218,459 Natural gas vehicles: 340,000 Refuelling stations: 790 Refuelling stations: 426 Refuelling stations: 614 (December 2010) (November 2010) (December 2010) 2. IRAN 1. PAKISTAN 5. INDIA 3. ARGENTINA Natural gas vehicles: 1,954,925 Natural gas vehicles: 2,740,000 Natural gas vehicles: 1,080,000 Natural gas vehicles: 1,954,925 Refuelling stations: 1,574 Refuelling stations: 3,285 Refuelling stations: 571 Refuelling stations: 1,878 (December 2010) (December 2010) (December 2010) (December 2010)Source:
  6. 6. NGV INFRASTRUCTURE FACT PACK 2012 | PAGE 6 2nd Natural Gas Vehicle InfrastructureNGV Infrastructure Overview Conference & Exhibition For more info please visit www.ngvevent.comWeak Infrastructure is a major obstacle to development of the natural gas vehicle market— despite Recently FC Business Intelligence surveyed 202 NGV executives to determine the most importantthe considerable operating cost advantages switching to natural gas provides to fleet managers. factors in the future market size of Natural Gas Vehicles. Availability of NG stations emphatically provedCurrently, natural costs $2.64 less per gallon equivalent than does diesel in Boston and Washington to be most important, with 95% of the executives considering it very important. An obstacle thatD.C., and $3.26 in Portland, Oregon, and this trend looks set to continue. companies are addressing. Here’s a breakdown of the survey results: Spread of price between Diesel Availability of Natural Gas Lack of NG stations 65% & Natural Gas supplies Lack of tax incentives 24% Complicated 22% Availability Availability fuel tax of Natural Gas of Natural Gas obligations for vehicles stations station owners High relative cost of NG vehicles 8%Source: FC Business Intelligence survey, April 2012
  7. 7. NGV INFRASTRUCTURE FACT PACK 2012 | PAGE 7 2nd Natural Gas Vehicle InfrastructureForecasted NGV infrastructure timeline Conference & Exhibition For more info please visit CNG will 37% 60% 57% 36% 43% of Natural Gas producers believe that LNG will fuel 51% of long 43% 28% 48% 40% 40% 28% haul operators by 2020. 60% of Natural Gas Utilities believe that NG stations will be easily available by 2030. 29% 64% 60% 29% 29% 60% 50% of Equipment suppliers think that home refuelling appliances will be 50% 40% 43% 44% Equipment suppliers Natural Gas producers Fleet managers Natural Gas Utilities easily available by 2015. 2015 2020 2030 NeverSource: FC Business Intelligence survey, April 2012
  8. 8. NGV INFRASTRUCTURE FACT PACK 2012 | PAGE 8 2nd Natural Gas Vehicle InfrastructureNGV Industry Perspectives: Conference & Exhibition For more info please visit www.ngvevent.comSignificant strides are being made by stakeholders from across the value chain including fleet opera- FC Business Intelligence Interviewed a number of stakeholders from across the value chain to get theirtors, natural gas utilities, c-store’s / truck stops and natural gas producers alike to develop CNG & LNG thoughts and perspectives on how they are working to develop CNG & LNG infrastructure.infrastructure and to stake their claim to a part of this burgeoning industry. Here’s feedback from Apache Corp, Chesapeake Energy, Drive Natural Initiative and NGV GlobalBUSINESS MODELS: How is your organization involved in driving this market forward? Kathryn Clay: The Drive Natural Gas Initiative is a collaboration between producers of natural gas and the distributors of natural gas. We now have about 50 companies, about half from each side. OurFrank Chapel: Apache’s mission is to promote natural gas as the alternative transportation fuel of mission is to promote natural gas to meet the goals of energy security and environment benefits, andchoice. We are doing this by transforming our US fleet vehicles to natural gas-power and constructing doing the work that needs to be done on the infrastructure side to make that happen.CNG fueling stations to support this initiative. We have converted more than 230 of our 900-plus USfleet vehicles to natural gas-power, about 26 per cent. By the end of 2015, our objective is to have over When we go to vehicle manufacturers and ask them what it would take to build this market, the80 per cent of our US fleet powered by CNG. To support that, we have constructed 16 CNG fueling number one thing they say is a gas station fueling infrastructure. We know it’s up to us to build that. Westations, with 5 of these being publicly accessible to serve other fleets and individuals. have to get out of this old mindset of whether it’s the vehicles first or the infrastructure. We have to move to a new paradigm where we do both together.Historically, the industry has had a “chicken and egg” dilemma. Nobody wanted to build the fuelingstation infrastru ture because there were no vehicles and nobody wanted to provide the vehicles We see this materializing in regions that have had success, like Southern California, Utah and part of thebecause of the lack of fueling station infrastructure. There were also no significant fuel savings, or other Rocky Mountain region, with its natural gas corridor. The Texas Clean Transportation Triangle is anotheradvantages. That has all changed. We now have a very attractive price differential between natural gas good example of where local distribution companies, stakeholders and fleet operators have comeas a transportation fuel and conventional fuels. This economic advantage – $1.50 to $2.00 per together and agreed on building fleets and infrastructure at the same time. Both sides do theequivalent gallon savings – is projected to continue. As a result, fleet managers and individuals are investment without the other worrying that the other isn’t going to fall into place.finding it very compelling to consider this. I feel that the “chicken and egg” argument is no longer valid.Natural gas fueling station infrastructure is rapidly expanding, with the objective of increasing the We are looking at building on those examples, and that Pennsylvania might be another goodavailability of natural gas fueling in metro markets and along the inter-and intra-state corridors. opportunity. It has tremendous resources of shale gas, which means that if we build the infrastructure,Utilizing natural gas as a transportation fuel is a real win-win. It provides great fuel savings and a the resource to be used locally, making natural gas a strong job-creating force. Also, because of itssignificant reduction in harmful vehicle exhaust emissions. And it is an abundant American product location, we think Pennsylvania can provide a structure for buildout to the neighboring states. Thethat can reduce our dependency on petroleum imports. Pennsylvania Turnpike is one of the most heavily trafficked roads in the country. It is one of he most important arteries for long-haul trucking, and really joins up the North East and the Mid West. That’s aBrett Jarman: NGV Global was formed 25 years ago in New Zealand. At that point, the technology key corridor, and we think it could help move our issue forward.was very young, and the industry was immature, but there was a lot of enthusiasm. In the last 10 or 12years, it has really matured significantly. Our role is to facilitate increased use of natural gas vehicles any Norman Herrera: Chesapeake has 4,500 vehicles in 18 states that we are converting to natural gas. Weway we can. We are not at street level doing conversions or supplying gas; we leave that to industry know there are other companies out there that are also converting their fleets. Transportation is themembers. But we are doing what we can to remove barriers, for example by harmoniing standards, third leg of the stool after power generation and industrials, and all of us have an interest in seeing thetrying to solve legislative problems, and promoting industry safety. We can’t be in every country, but market grow. We all drive similar three-quarter ton trucks that we can purchase at quantities. We arethere is a network of associations around the world. Where possible, we help with information to converting our vehicles and providing a market that’s on the road and using the fuels.promote their cause.
  9. 9. NGV INFRASTRUCTURE FACT PACK 2012 | PAGE 9 2nd Natural Gas Vehicle InfrastructureNGV Industry Perspectives: Conference & Exhibition For more info please visit www.ngvevent.comWe are saying to retailers: ‘You don’t need to worry that customers are going to come, you can be Frank Chapel: More OEMs need to begin the assembly line production of natural gas vehicles.profitable not only selling gasoline and diesel but by selling compressed natural gas. We think our Hopefully, this will result in economies of scale, and a reduction in the increased cost of naturalenergy future can be supplied 100 percent by homegrown resources, where we can take advantage of gas-powered vehicles. In addition, this may result in a larger selection of available vehicles.the tremendous exploration going on, and the abundance of energy we have now.’ A second obstacle is the limited number of vehicle makes or models that have been approved by theThen, we’re going to be investing heavily so that retailers like Clean Energy Fuels, Pilot Flying J, Love’s, EPA for conversion to natural gas power. I believe that both of these obstacles will be overcome due toand On Cue Express, which may need assistnce are all maintaining stations, and can help us solve the the increasing natural gas vehicle demand. Third is the general lack of knowledge about the benefits ofchicken-and-egg conundrum of infrastructure or vehicles. natural gas as a transportation fuel. A lot of people I talk to confuse it with propane. Considering that the US has more natural gas than Saudi Arabia has oil, its time has come to play an important role inAnd, we’re looking at other segments, like transits, refuse trucks, and delivery fleets. The refuse market is our energy policy. I think we’ve got a really good story to tell beyond the savings: that it’s clean,really exciting because you’ve got cities across the country making decisions to convert their waste abundant, and American.haulage to natural gas. It’s a sector that has low fuel economy and lots of starting and stopping, andthe emissions requirements in certain areas of the country are policed pretty heavily. My advice to anyone thinking of converting their vehicle would be to engage only experienced conversion kit dealers or installers who are trained and certified by the EPA-certified conversion kitOn delivery vehicles, you’ve seen UPS and Ryder show great leadership, and Fedex is considering manufacturers. It is important that the driving experience be transparent – that it feels the same asswitching. What’s great about that part of the market is that you’ve got an OEM solution that can fuel at when powered by the conventional fuel. Using reputable and experienced providers for thesepublicly available locations, as well at behindthe- fence locations. These early adopters are all conversion services will help ensure this transparency.companies people have heard of, they have heavy mileage, and consistency in their routes. MARKET CHALLENGES: What obstacles does the industry need to address?PARTNERSHIPS: What alliances do you have with other organizations? Brett Jarman: If you look at the mobile phone industry, back in the 1980s phones were horrendouslyNorman Herrera: We’re talking with automakers. They need to have confidence they can allocate expensive, it was hard to get reception, they were very heavy, and had a battery life of about an hour.resources to engineering, and to brake and crash testing the new vehicles. They are only going to do There wasn’t much infrastructure to support them. What drove the market was consumer interest. Andthat if there is a customer base. We need to partner with them, and explain the value proposition of an that’s the thing that has to come first for our industry too. As long as we can drive demand, theabundant fuel that is present throughout the country. infrastructure and the vehicles will follow. If we go back more than 100 years to Henry Ford’s day, there weren’t many fueling stations then. But now there are stations on pretty much every street corner. It’sHonda already has its Civic GX vehicle in the market, and GM has announced that its Express and the customer that comes first, not the vehicles or the infrastructure. That’s where you get growth, and ISavannah vans are going to be fully certified and warrantied. Then you have Ford and Chrysler looking think we’re seeing that round the world this market. Some of these companies already have bi-fuel vehicles that sell well in other countries,so it’s about combining those success stories, and making our case.
  10. 10. NGV INFRASTRUCTURE FACT PACK 2012 | PAGE 10 2nd Natural Gas Vehicle InfrastructureNGV Industry Perspectives: Conference & Exhibition For more info please visit www.ngvevent.comWe can learn a lot from nations that have developed big NGV markets. They have done that entirely Second, we need to improve the comfort-level of vehicle and engine manufacturers that this market iswith converted vehicles, no OEMs. All the fueling stations have grown organically. The same can be said ready for natural gas vehicles. We don’t need any technology breakthroughs. These vehicles are on offerabout Pakistan, which has about 2,500 fueling stations, and more than 2 million vehicles. That wasn’t in other markets in South America, Europe, and increasingly in Asia. It’s just a question of bringing themdriven by OEM availability, or the fueling stations. It was driven by consumers. to North America. Ironically, the US is largest producer of natural gas vehicles, but only 1 percent of 12We can learn from their mistakes as well. Even though they have a lot of vehicles and fueling stations, million worldwide are here in the United States.they are only now waking up to opportunities in the commercial sector. That is where the North We learnt a lot from the 1990s about how we promote the industry, and we we were able to prove theAmerican market is ahead of the game. You’ve also the focus on the commercial sector, which uses technology. The reason those attempts before were false starts is largely because of extreme pricemore fuel than the moms and dads. volatility we saw in the mid-1990s. It was also because we were in a very different place in the production of natural gas. It was going down. Every analyst thought the US was going to become anYou can’t just focus on infrastructure. Germany has something like 900 to 1000 gas stations, but they importer of natural gas, in the form of LNG. Shale gas has revolutionized the energy landscape. The USonly have 90,000 vehicles. That’s a ratio of 100 vehicles per station, where the global average is closer to is no longer looking at a future of natural gas importation, but having our own supplies for up to a 1001,000 vehicles per station. It is in the interests of the infrastructure providers to generate demand, and years into the future. Going forward, we can expect oil prices to rise and stay volatile, while natural gasthat’s the shift I’ve noticed in the US in the last five years. The gas industry now sees its role in shifting is expected to stay low and stable. That means it’s going to become even more attractive fuel choice.demand. They know they have to convince the fleet operators, for example. Norman Herrera: There are great stories happening across the country that aren’t told nearly enough,So much has changed since the 1990s. First, the technology is mature. We can now match diesel and and really it’s the industry’s responsibility to communicate that. Whether it’s a station opening in Bogergasoline for performance. Second, the environment is now on everyone’s agenda. Back then, it was a City, Louisana, or Cicero, in New York, you have plenty of things happening every day. CommunicationPR exercise for some companies. Now it’s a factor companies have to take into consideration in their is important.buying decisions. There is the availability of natural gas, especially in the United States, and it’s a goodprice. Back in the 1990s, when the oil price was so low, fluctuations didn’t matter so much; now they On the regulatory side, there are always opportunities to discuss a market that has parity with otherhurt. Finally, we have the energy security issue. alternative fuels. You want to have incentive structures that a level of parity there, and that is not the case today. That is somehing that can be improved. But the prospects for the industry are much betterKathryn Clay: We need to think about public awareness. There was a poll conducted by than they were in the 1990s. Then, you didn’t have the abundance of natural gas, and you had a priceTechnoMetrica that asked about natural gas as an alternative transportation fuels, and they were point that was coupled with diesel and gasoline, so there wasn’t any differentiation. Today,surprised by the results especially in the west of the country. Over 70 percent of Americans are awareof you have stations in Oklahoma that have had prices of a $1.39 for gas gallon equivalent for the last 18natural gas vehicles as an option for public transport. That was encouraging, although awareness is months, so you have a more attractive price.somewhat lower in the North East. We still have some work to do to build awareness in different partsof the country. You also have producer companies like Chesapeake and our peers at America’s Natural Gas Alliance that have all begun to look at this as a true market. And then you have large corporations that are studying this market and seeing that doing something domestically is appealing. Whenever you can
  11. 11. NGV INFRASTRUCTURE FACT PACK 2012 | PAGE 11 2nd Natural Gas Vehicle InfrastructureNGV Industry Perspectives: Conference & Exhibition For more info please visit www.ngvevent.comhave Fortune 500 companies with their vast logistics chains and consumer channels participate, that’s Brett Jarman: The US gas industry and vehicle manufacturers are doing a good job educating thea big difference. marketplace. When you see major companies like AT&T and Ryder putting thousands of natural gas vehicles on the road, that means you are making progress. You can turn up the heat on the informationFUTURE DEVELOPMENTS: What does the industry need to do in the next few years? even more, but it’s good at the moment.Kathryn Clay: We have been supportive of tax incentives for consumers of natural gas vehicles, and The major weak link, I think, is a lack of political understanding of the importance of NGV. We need tofor companies that invest in fueling technologies. We support language that is technology neutral – see some balance in political decision-making that says ‘our oil supplies are not that reliable, so we’vethat gives the same level of support whether it’s gas, electric recharging, or new biofuels. We think got to have some alternatives’. The US sends $1bn a day overseas to buy oil, and I think that could bethere is tremendous market pull already to bring natural gas vehicles into the market, but brought back. It would also be good to see local and federal governments themselves buying naturalthoseincentives can really accelerate the process. gas vehicles, and incentivizing the alternative fueling stations at the local level.At the Drive Natural Gas Initiative, we are really excited about home-refueling. We have the opportunity Norman Herrera: In the next two or three years, I would expect the big automakers to have madeto open up the passenger vehicle market in much the way as with plug-in hybrids. It would work the announcements on pick-up trucks specifically, because that is what our industry has been driving. Theysame way: you would come home at night and hook up the car to your natural gas line. It’s using the are the vehicles that consumers can purchase as well as commercial fleet customers.gas that is already safely delivered across the country. There was a good product on the market in the1990s, called Fuelmaker. But we think we could make an even better product. So we have been The second thing I expect is more announcements on infrastructure development. Chesapeake is areaching out to the producers of small compressors that could manufacture this. We have contacted company that is going to continue investing. In July, we announced a nearly $1bn venture fund for35 worldwide, and started engaging them. We think in addition to public transportation and fleet transportation and technologies. So, in two years I think we will have additional partners outside of thevehicles, there is a lot of potential in passenger vehicles, and that home refueling is the key to first two, which were Sundrop and Clean Energy Fuels.unlocking it. Finally, I think we’ll have diversity of participants outside the companies that have always participatedFrank Chapel: In the next few years we need to focus our efforts to produce a national network of in this market. I would expect new convenience store chains, new companies doing home fuelingnatural gas fueling stations. This station infrastructure must be adequate to serve the metro markets devices, and new technologies on the compression and dispensing. We think that environmentaland the inter- and intra-state transportation corridors throughout our country. Then, anyone deciding regulation, favorable price points, and the promise of good returns on investment make for a really ato transform their vehicle to natural gas can do so without a concern. Currently, because of limited bright outlook.infrastructure in many areas, it can be prudent to convert your vehicle to bi-fuel operation, CNG orgasoline. We also need to continue educating potential customers to the benefits of natural gas as atransportation fuel, and working with the OEMs to encourage them to meet this future demand.
  12. 12. NGV INFRASTRUCTURE FACT PACK 2012 | PAGE 12 2nd Natural Gas Vehicle InfrastructureNGV Infrastructure Business Models Conference & Exhibition For more info please visit www.ngvevent.comCompanies are using different business models to develop infrastructure, which has potential to And each of these company types employ different business models to invest in and developfurther transform the market, by making it easier for future natural gas vehicle purchasers, whether profitable and sustainable NGV infrastructure. To give you a taste of some of the business modelsthey be fleet managers, or individual drivers, to fuel their vehicles. The 4 main developers of being employed here are a couple of case studies:infrastructure fall into 4 main categories• Fleet Owners • Natural Gas Utilities • C-Store, Truck Stop Operators • Natural Gas ProducersAT&T DillonIn March 2009, AT&T announced plans to invest up to $656 Dillon has supplied a sample ROI calculation that demonstrates the possible payback for switching to NG.million as part of a long-term strategy to deploy approximately15,000 alternative-fuel vehicles through 2018. Up to 8,000 ofthese vehicles will be CNG vehicles, representing one of thelargest US corporate commitments to CNG vehicles to date.AT&T has also committed to replacing gasoline-poweredpassenger vehicles it retires with alternative fuel models,including replacing more than 7,000 passenger cars through2018. AT&T had deployed more than 6,000 alternative fuel 10 trucksvehicles as of January 2012, including more than 4,500 CNG 400,000 DGE per year Incremental cost of xvehicles and more than 1,600 hybrid electric vehicles. x NG truck $50,000 200,000 miles a year $1.50 fuel savings x : – = 10 vehicles 5mpgClean Energy / Navistar = $600,000 =In 2012, Clean Energy and Navistar entered into an agreement 400,000 DGE per year savings on fuel costs per year $500,000to supply customers with NG-fueled trucks, if customers agreeto purchase NG from Clean Energy. The program will commencewith MD trucks, and then expand to include Heavy Duty (HD) Payback period for trucks is 10 months.rigs during 2013. Navistar will develop and sell the NGVs, whileClean Energy is responsible for necessary fueling infrastructure. developmentRyderRyder launched an HD and Medium Duty (MD) truck rental andleasing project in Southern California, with an initial order of 202vehicles in July 2011. The company will construct two NG fueling
  13. 13. NGV INFRASTRUCTURE FACT PACK 2012 | PAGE 14 2nd Natural Gas Vehicle InfrastructureInfrastructure Business Models Conference & Exhibition For more info please visit www.ngvevent.comApache Corporation Chesapeake EnergyApache opened public access CNG stations, in Tulsa, Oklahoma, and Lafayette, Louisiana in Chesapeake Energy Corporation has invested $150 million in America’s Natural Gas Highway,April 2012. By the end of 2012, 20 NG fueling stations will be in place, five of which will be and has also partnered with national fuel station retailers, such as Love’s Travel Stops & Countrypublic access, and will include a station in Houston, Texas, and two in Midland, Texas. Stores. Chesapeake, in conjunction with GE, is also developing a proprietary CNG In A Box™The company’s business model is simple. Converting 80% of its fleet to NG by 2015 requires technology, a plug and play unit, that will allow Chesapeake to extend the Love’s model andit to build necessary supporting infrastructure. Once in place, that infrastructure makes it partner with other retailers, especially chain convenience stores, with sufficient scale to allowconvenient for other companies to convert their fleets to NG. Other fleet managers can incremental gains in fueling availability. This strategy targets existing retail stores and chains,realize operational cost savings without the need to construct their own stations, since they which already own necessary real estate, have verifiable existing traffic counts, and enjoycan use either Apache’s public access stations, or take advantage of Apache’s liberal policy significant consumer popularity.of entering into agreements that allow other fleets access to its stations. This model creates Some companies have invested in general infrastructural development. Other companies havea cycle of market building. Apache has so far signed agreements with Chesapeake Energy decided to construct their own infrastructure:Corporation and Laredo Petroleum to allow them to use Apache’s network of private CNGfueling stations and is open to entering into further such agreements. • Waste Management has elected to allow public access to their stations, when it can do so safely, to increase the baseload on each station and thus reap the greatest return on their investment.Clean Energy Fuels • Questar Gas Company, which constructed its first CNG station in 1981, is extremely selective about siting and constructing stations, which it does according to a standardized plan, focused intensely onClean Energy is developing America’s Natural Gas Highway, a network of 150 million LNG and cost minimization.LNGC fueling stations, to be operational by the end of 2013. The company is partnering with • Mansfield Energy, by contrast, provides its customers with highly customized solutions in stationPilot Flying J Truck Travel Centers, a major operator of truck stops throughout the U.S., so siting and design. Mansfield helps customers decide where to locate their stations by usingallowing Clean Energy to add NG fueling options to the services already offered at Pilot Flying J’s Mansfield’s extensive customer records of refined products purchase data.extensive network of truck stops.
  14. 14. NGV INFRASTRUCTURE FACT PACK 2012 | PAGE 15 2nd Natural Gas Vehicle InfrastructureNGV Industry Thought Leaders Perspectives Conference & Exhibition For more info please visit www.ngvevent.comIndustry Thought Leaders in Their Own WordsAs part of the 1st Natural Gas Vehicle Infrastructure Conference & Exhibition USA leaders from acrossthe NGV industry shared their perspectives on the NGV market development – here are a couple ofpresentations so you can hear the thoughts of some of the industry’s leading pioneers on this subject.The Utilities Critical Role in NGV Market Development Building Blocks in the Infrastructure of a Growing Natural Gas Highway Network• Discover why now is a critical time for regulators to embrace innovative approaches to utility • Discover how Encana is expanding its use of liquefied natural gas (LNG) in large freight vehicles participation in NGV infrastructure development through its new mobile LNG fuelling stations• Hear why an approach is needed that will allow utilities to add their expertise and private capital to • Learn how Encana is working with public and private stakeholders to stimulate demand, create the NGV market while Protecting ratepayers and supporting new entrants and growth of incentives and tax breaks and attract investment to set up a natural gas fuelling corridor for competitive markets Canada• Learn what SoCalGas is doing in order to grow the market for NGV’s and NGV Infrastructure in • Hear insight into Encana’s multi-year plan to convert a large number of the more than 1,400 California and beyond trucks and passenger vehicles in Encana’s fleet to run on natural gasMichael Allman, Chief Executive Officer, Southern California Gas Company (SoCalGas) Eric Marsh, Executive Vice-President & Senior Vice-President, USA Division, Encana Natural Gas Download PDF Play Audio Download PDF Play Audio
  15. 15. NGV INFRASTRUCTURE FACT PACK 2012 | PAGE 162nd Natural Gas Vehicle Infrastructure Conference & ExhibitionFebruary 24-26, Renaissance Hotel, HoustonNorth America’s Premier NGV Focussed Event Dave McCurdy John Somerhalder Ron Jibson Laurence Downes Gordon Gillette CEO CEO CEO CEO President American Gas AGL Resources Questar Corporation New Jersey Tampa Electric/ Association Natural Gas People’s GasNorth America’s leading Natural Gas Vehicle focused conference is back for its second sell-out year. This Plus exclusive fleet case studies from the nation’s leading NGV fleet operators, top Policy makers fromis the only forum that will give you the direction and tools you need to build a comprehensive Natural across the US discuss how they are working to move NGV’s centre stage, home refuelling & muchGas Vehicle Infrastructure strategy to ensure success in this booming market. much more…Over 600 senior decision makers will be in attendance to network, do business and exchange the latestindustry updates. Our world class agenda will equip you with business critical information:• NGV Infrastructure Business Models: Hear from the nation’s leading utilities & c-store’s on how to develop a profitable and sustainable NGV business• Marketing & Communication: Innovative and effective ways in which to communicate the benefits of NGV’s to win fleet customers and secure long term contracts For more information on the conference including the full agenda and fantastic• Technology Updates and Developments: Discover the very latest in NGV vehicle and speaker line up please CLICK HERE infrastructure technology developments to ensure you have the crucial knowledge your customers require• Planning, Siting & Project Development: Benefit from a comprehensive assessment of NGV Infrastructure project development approaches, utilizing the latest project experience to maximize efficiency and minimize costs• Partnerships & Alliances: Form key partnerships with leading companies from across the NGV value chain in North America to expand your NGV business and guarantee project success