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    LNG on the road – the bottom line [LNG Condensed]

Summary

For road transport companies, the bottom line is what really counts. Studies conducted over relatively short periods show substantial fuel cost savings for LNG versus diesel, but over the last 10 years the US LNG-to-diesel price spread has not always been favourable. As with GHG emissions, the picture for LNG fuel savings is more nuanced than might be expected. Putting LNG in your tank is, at the end of the day, a hedge against OPEC.

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by: Ross McCracken

Posted in:

Complimentary, LNG Condensed, NGW News Alert, Liquified Natural Gas (LNG), Gas for Transport

LNG on the road – the bottom line [LNG Condensed]

A number of recent studies have cast doubt on the extent of greenhouse gas emissions reductions to be gained from the adoption of LNG in transport. A report by Imperial College London’s Sustainable Gas Institute published in January suggested 16% GHG emissions savings on a full life cycle basis for road transport and 10% for shipping. An industry commissioned study unveiled in April by consultancy Thinkstep estimated well-to-wake reductions of 7-21%.

Most pessimistic of all was a study published in October 2018 by the European Federation for Transport and Environment, which concluded that “based on the latest available evidence fossil gas used in transport has no meaningful - and when including methane leakage and upstream effects in almost all cases no - climate benefits compared to petroleum based fossil fuels.” Yet this study too provided ranges showing some savings, -2% to +5% for trucks and -12% to +9% for ships compared with marine diesel rather than high sulphur fuel oil (HSFO).

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