Advantages of methane for cars remain unclaimed
In 2007, when compressed natural gas (CNG) was 65% cheaper than A-95 petrol, drivers were queuing up to install gas cylinders, and the number of new natural gas vehicle (NGV) filling stations and those under construction exceeded one hundred. The country’s methane market seems to have finally come out of the lethargy in which it has been since the 1990s. But it took only two years, and the situation has changed dramatically. Prices of CNG have more than quadrupled; and its retail supply has fallen again.
The opening of new NGV refill stations was hindered by high costs, low margins and artificially limited access to the resource.
The indifference of the state to the needs to consumers and the sellers of the fuel, which has been described by the International Energy Agency as the most promising in terms of environmental effects, technological costs and availability, has again thrown our country back to the early 2000s. It seems that the Ukrainian market of automotive methane will die without having had a chance to grow.
This is surprising, because as of March 1, 2012, methane (mostly compressed to 19.6 MPa) was used by 14.73 million vehicles in 83 countries. Compared to March 2000, their number has increased significantly, beating the most optimistic forecasts of 15 million vehicles by 2015. In particular, 600,000 buses, 13.5 million cars and 300,000 trucks and 300,000 special vehicles used a mere 37 billion cubic meters of methane, using the services of 20,700 filling stations (in 2004 their number was five times less). Among the key factors that allow to talk about natural gas as the fuel of the 21st century are:
- large proven world reserves (170 billion tonnes of oil equivalent). Their growth pace is almost two times higher than that of crude oil stocks;
- the need to release crude oil for those industries in the world economy where it cannot be replaced;
- greater security of gas production, transportation, processing, sale and use;
- economic attractiveness to consumers.
The word «gas» for most Ukrainian drivers is synonymous with propane-butane. Such associations are understandable, because methane loses out to propane-butane in terms of popularity due to insufficiently developed infrastructure (in 2011 propane-butane was used to fill up about 70% of the vehicles that were converted to use gas).
However, in Asia and Latin America where CNG is widely used due to state policy support, and it remains perhaps the most popular type of motor fuel. The top five leaders of the methane market are Iran (2.9 million cars and 1,800 NGV refill stations), Pakistan (2.9 million and 3,068), Argentina (2.0 million and 1,902), Brazil (1.7 million and 1,792) and India (one million and 571). In Europe, that segment is actively developed by Italy (78,000 and 860). Among the former Soviet republics, Armenia leads in promoting CNG use (24,000 and 345).
You can read full article in journal «Terminal: Oil Review» №13 (599) 2 Apr 2012
