Moving From Liquid Gas to Natural Gas

Getting Americans to drive cars powered by natural gas is an uphill climb.

June 20, 2012

HOUSTON - Beneath the surface, the United States sits on a gold mine of energy in the form of natural gas. But getting that cleaner burning fuel into our cars is proving to be as hard as finding a needle in a haystack, the Wall Street Journal reports.

Electric utilities are using natural gas to run their turbines, and chemical companies that use the fuel are bringing their business operations back to this country. While the commercial truck industry has embraced natural gas, with large fleets converting to the fuel, passenger vehicles that run on natural gas have been a tougher sell.

"This abundance of natural gas is something we weren't expecting as a country, but it's here now, and it's a gift we should take advantage of," said Steven Mueller, CEO of Southwestern Energy Co. "There's huge savings here and a way to help the environment."

A huge part of the concern is the up-front cost of natural-gas vehicles. Then there€™s the fact that public refueling stations are not plentiful, with only around half of the 1,500 stations scattered across the United States available to the public.

Some companies are investing in public fueling stations, but on a very small scale. For example, Love€™s Travel Stops & Country Stores will open 10 CNG outlets over the summer, and Kwik Trip Inc. debuted its inaugural CNG station in La Crosse, Wis.

"It's attractive to customers because it's a domestic product, there's a steady supply, and the price is right," said John McHugh, communications manager for Kwik Trip. "If we can offer the consumer a value, we know people will jump on the bandwagon."

"Part of the reason retail availability of natural gas for vehicles is slow to take root is the cost of infrastructure," explained NACS Vice President of Government Relations John Eichberger. "Depending on the system installed, retailers could face a cost of $500,000 - $1 million per location. However, we have seen less expensive alternatives enter the market recently that, when combined with the relative cost and profitability of the natural gas product itself, could begin to improve the ROI calculations for many retailers."

The Environmental Protection Agency predicts that alternative fueling stations could hit 10,000 soon. Truckers have begun to convert to natural gas, too, while Shell and TravelCenters of America will be expanding their network of CNG stations.

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