The LNG transport sector in China is growing

The number of vehicles running on natural gas in China could more than double over the next five years, cementing the country’s status as the world’s largest and fastest-growing natural gas vehicle (NGV) market. China had 4.6 million NGVs and nearly 7,000 filling stations at the end of last year, according to Li Yongchang, an expert from the Society of Automotive Engineers of China. Out of the 10.5-11 million of total NG vehicles by 2020, 400,000-500,000 alone could be LNG vehicles, representing almost 2% of the total count, said LI. LNG stations could be up to 4,500-500, he added, leading to a consumption of 80-90 billion cubic metres (bcm) per year of gas by 2020 for NGV vehicles, 25% of the country total gas consumption. However, other experts are less strong on this position, due to the several challenges the sector will have to face, stated Rao Chuan, secretary general of China’s NGV Industry Association. Among these, the investments could decrease due to a minor interest, as showed by the cut in investments which has already happened since May 2014. The development of shale gas resources could nonetheless support the NGV vehicles sector, as Li said that shale gas from some wellhead in Sichuan could be fit to be used to refuel them. Containing no sulphur, this quality of gas will save on desulphurisation as well, he concluded. Source: GNV Magazine