Natural Gas as a Transportation Fuel Louisiana as an Example

Transcription

1 Natural Gas as a Transportation Fuel Louisiana as an Example Louisiana Representative Jeff Thompson National Conference of State Legislatures February 2, 2012

2 Natural Gas Working for Louisiana More than 266,000 total jobs 62,581 direct 77,406 indirect 126,603 induced About 13.7% of total employment $12.6 billion in labor income $24.4 billion in value-added economic output Source: IHS Global Insight,

3 Why Natural Gas Vehicles in Louisiana? Leading natural gas producing state Largest natural gas producing state in the U.S. Fourth largest natural gas reserves in U.S. Henry Hub which provides access to major markets throughout the country Interstate corridors (I-10, I-20, I-49) Expanding natural gas infrastructure along corridors 3

4 U.S. & Louisiana Transportation Fuel Portfolio 2009 Consumption America & Louisiana rely on one primary fuel for transportation - Petroleum Alternative Fuel 0.2% Alternative Fuel 0.1% Diesel 29% 17.7 Bcfe/d 0.1 Bcfe/d Gasoline 71% Diesel 34% 0.4 Bcfe/d 0.01 Bcfe/d Gasoline 66% 43.8 Bcfe/d 0.7 Bcfe/d U.S. (193.9 Billion gge / 61.6 Bcfe/d) Gasoline Billion gge Diesel 55.6 Billion gge Alternative Fuels 0.4 Billion gge Louisiana (3.2 Billion gge 1.03 Bcfe/d) Gasoline 2.1 Billion GGE (65.6%) Diesel 1.1 Billion GGE (34.4%) Alt. Fuels.002 Billion GGE (0.1%) Source: Energy Information Administration (EIA),

5 Louisiana NGV Coalition Natural Gas for Transportation The purpose of the Coalition is to advance natural gas infrastructure and vehicle growth in Louisiana through planning for best infrastructure placement, connecting stakeholders together to create the infrastructure, and engaging appropriate fleets and vehicles. Producers are currently: Converting fleets, rigs and equipment to run on natural gas Many are building stations, both private and with public access Committing fleet fueling at 3 rd party stations Investing in conversions for communities (current members others to be included) 5

6 Natural Gas Fueling in Louisiana January 2012 View 13 Existing CNG Stations 8 Public (Alexandria, Baton Rouge (3), Bossier City (2), Coushatta, Mansfield) 5 Private (Baton Rouge (2), Chatham, Fort Polk, Shreveport) 6 Planned CNG Stations Frierson, Lafayette (2), New Orleans, Shreveport (2) 1 Existing LNG Station Frierson Source: DOE, AFDC 6

7 Plan for Future Fueling Infrastructure June 2011 View 7

8 CNG for Louisiana Compressed Natural Gas (CNG) Source: Pipeline Compressed to 3,600 psi Primarily for light and medium duty vehicles Ideal for return-to base fleets or fleets that require fast-filling Time-fill and fast-fill capability Existing and Planned Projects Existing CNG Public / Private Quantity 5 / 4 Locations Alexandria, Baton Rouge (5), Bossier City (2)*, Chatham*, Coushatta*, Fort Polk, Mansfield, Shreveport Funded 6 Frierson*, Lafayette (2)*, New Orleans, Shreveport (2)* Planned 13 Baton Rouge (3), Hammond, Houma, Jennings, Lake Providence, Metairie, Monroe, New Iberia, Natchitoches, Opelousas, Ruston Total 28 * Natural gas industry funded or fleet committed 8

9 LNG for Louisiana Liquefied Natural Gas (LNG) Source: Liquefaction Plant Converted to liquid form for ease of storage or transport (Cooled to -260 F) Volume reduced nearly 600 times Ideal for medium to heavy duty fleets Fast- fill Mobile, Portable, Custom Existing Existing and Planned Projects Location Operator Date Portable - now in Coushatta Haynesville Rigs & Equipment Encana Service Companies & Producers Current Current Existing De Soto Station Encana Current Planned (6) Lake Charles, Lafayette, New Orleans, Port Fourchon, Shreveport, Slidell 9

10 Louisiana NGV Stations 10

11 Louisiana NGV Stations, cont. 11

12 Louisiana NGV Legislation Act 469 Introduced by Representative Jane Smith Effective July 9, % income tax credit on incremental cost 50% income tax credit on station construction CNG / LNG Special Fuels Tax Annual flat rate up to $120 or up to 80% of special fuels tax Other Based on $0.16 per gallon Alternative vehicle revolving loans Vehicle and infrastructure acquisition requirements Deregulation of CNG as a motor fuel Infrastructure Growth since Legislation 100% Growth Source: US DOE Alternative Fuels & Advanced Vehicles Data Center CNG LNG 12

13 Red River, Louisiana Vehicle Payback Example Pickup Truck School Bus Refuse Truck Transit Bus Incremental Cost $10,000 $36,000 $52,000 $50,000 Incentives $5,000 $18,000 $26,000 $25,000 Net Incremental Cost $5,000 $18,000 $26,000 $25,000 Annual Mileage 25,000 20,000 20,000 40,000 Annual Mileage Fuel Efficiency (mpg) Gallons of Fuel / Year Petroleum Fuel Cost per Gallon Natural Gas Cost per GGE Annual Fuel Savings Simple Payback (years) ,786 2,597 6,452 11,111 $3.60 $3.99 $3.99 $3.99 $2.11 $2.11 $2.11 $2.11 $2,611 $4,883 $12,129 $20,

14 Natural Gas is Abundant Affordable Clean Reliable Domestic Solution 14 14