New alternative fuels – CNG and LNG

Chad Johnson, Marketing Manager, Encore

On May 10, Kwik Trip of LaCrosse, WI hosted a natural gas summit highlighting their plans to offer natural gas at four fueling location across their 400 plus stations network.  Kwik Trip brought together many of the OEM car and truck manufacturers, and equipment providers to highlight the changing landscape in the fueling market place.  With the price of CNG or compressed natural gas at almost ½ the price of retail petroleum and diesel, fleets, manufacturers and consumers are seeing the financial benefits of this clean burning alternative fuel.

The conference highlighted both Compressed (CNG) and Liquid Natural Gas (LNG) and the benefits of both.  Compressed Natural Gas is a plentiful carbon based fuel is made up of 90% methane.  With new horizontal drilling techniques available, the supply and discovery of natural gas has lowered the cost to historically low levels offering an attractive alternative to liquid petroleum products.  For C-stores looking to offer CNG, there are a number of site considerations required including supply, compression, dispenser equipment and forecourt control.  CNG must be compressed to above 3,000 psi allowing vehicles similar mileage range as liquid petroleum based products.

LNG or liquid natural gas is similar to CNG but it exists in liquid form since it is cooled to -200 F.  LNG is being targeted for long haul trucks since it offers additional range and minimizes the amount of storage required.  The challenge with adding LNG to the site is similar to CNG but compression is not required.

Many OEM truck and vehicle manufacturers are releasing new LNG and CNG vehicles over the next 18 months.  As this demand comes on-line the need for fueling infrastructure will soon follow.  Similar to petroleum based fueling infrastructure, the dispenser is a small percentage of the overall installation cost but it is the customer ‘touch point’ for the C-store.  Maintaining a forecourt image and customer experience at the dispenser island will be important to continue to drive profitable in-store traffic.

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