Wall Street Journal: China Tries Natural Gas to Fuel Shippers on the Yangtze River

The first natural gas-fueling station for cargo ships is set to open on the mighty Yangtze River next month, as part of China's efforts to use cleaner energy sources and cut down on pollution.

The ships that travel on China's longest river currently burn diesel and bunker fuel, and that helps to shroud cities along the waterway with smog.

China Gas Holdings Ltd. is building the fuel terminal as a pilot project in the mega city of Chongqing. While a few ships have converted their engines to use natural gas, most that travel the Yangtze haven't, so it could take years before the switch to gas from oil takes off and makes an impact on global energy markets.

Still, global companies are already lining up to invest. Finland's Wärtsilä Corp. and Rolls-Royce PLC will provide the engine for Asia's first gas-powered tugboat, which will be built for state-run China National Offshore Oil Corp. by the end of this year. The tugboat will pull oil rigs and other large items from shipyards on the Yangtze's banks out to sea. MORE