The Rising Influence of Rising Affluence

[zebra4o1]

Was surprised to learn that another growing use of gas as a transporation fuel is as LNG. On a recent GTLS (Chart Industries) conference call heard that one of their fastest growing markets is LNG systems for heavy duty trucks. That's right, LNG, not CNG. LNG gives trucks much greater range (compared to CNG). There are plans for converting the giant fleet of trucks carrying coal from north east China and Mongolia to LNG, converting city buses, and also converting Yangtze River cargo ships. Was fun to hear CEO talk about your average midsized Chinese city of 6 to 8 million, with a municipal bus fleet of 30,000 buses.

Believe that converting to LNG takes about 15% of the initial energy. Not sure how that compares to gas to liquids. Should also look into how the capex compares. Making LNG has got to be much cheaper.

If gas stays cheap people are going to find lots of ways to use it.