Sector: CNG

CNG, LNG growing faster than expected

Texas may be primarily associated with oil rigs, but apparently the state is now adopting methane-based motor fuels beyond anyone's wildest expectations. Fleets buy vehicles in large numbers and refueling stations are built quickly.

According to RRC Commissioner Porter from the state Comptroller's office, tax revenue from sales of CNG and LNG as motor fuels exceeded 3 million dollars for FY 2015 as of May 31. This means methane-powered vehicles are becoming mainstream and fast. To put the sum in perspective, collecting 3 million dollars in fuel tax at 15 cents per gallon equivalent taxation rate stands for sales of over 20 million gallon equivalents of natural gas in compressed and liquefied form.

These figures reflect the growth in natural gas refueling infrastructure in Texas over the past year. The number of vehicles tops 7,900 and the number of stations has increased by 30 percent, to 137, with an additional 44 coming on line in the next 12 to 18 months. A quick glance at the Texas Natural Gas Refueling Map shows how much progress industry has made in creating the infrastructure needed for fleet operators to take advantage of the cost savings and energy-security benefits of this abundant, domestic fuel.

RRC Commissioner Porter

The blooming interest in natural gas is likely the direct result of the Texas Natural Gas Initiative launched in 2013 to encourage use of CNG and LNG in transport, exploration and production sectors. Today harvest is being reaped and hopefully vehicle buyers will develop a habit of going for CNG/LNG, with no incentive programs necessary ever again.


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Robert Markowski
source: Railroad Commission of Texas 2012-2018 All rights reserved. By using this site you acknowledge that you accept its Terms and Conditions