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NPN Magazine March 2013

National Petroleum News (NPN) has been the independent voice of the petroleum industry since 1909 as the opposition to Rockefeller’s Standard Oil. So, motor fuels marketing and retail is not just a sideline for us, it’s our core competency.

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MARKETING & SUPPLY BY DEBraRESchkE-Schug The natural gas transportation industry provides fleets more fueling options mOBIlE FuElINg AND NATuRAl gAS T he Oil and energy industry is all abuZZ over natural gas. In the last few months,  both compressed natural gas (CNG) and  liquefied  natural  gas  (LNG)  have  taken  center stage in messages sent out by agencies  and  organizations  like  the  American  Petroleum  Institute and the Energy Information Administration. New CNG and LNG offerings have been rolling  out  in  the  last  year  at  trade  shows.  Moreover,  the  future of the fuel has been the focus of many industry seminars and conferences – such as the recent  one hosted by the American Trucking Association.  As  noted  in  the  NPN  January/February  issue,  the  EIA's  early  release  overview  of  the  Annual  Energy  Outlook  2013  is  very  heavy  on  natural  gas  projections.  Growth  in  diesel  fuel  consumption  is  projected to be moderated due to increased use of  natural gas in heavy-duty vehicles. "The improved  economics  of  liquefied  natural  gas  for  heavy-duty  vehicles results in an increase in natural gas use in  heavy-duty  vehicles  that  offsets  a  portion  of  diesel  fuel consumption," according to the EIA report.  "The  natural  gas  economy  has  arrived,"  said  David  Hill,  the  vice  president  of  operations  for  Encana  Natural  Gas,  a  North  American  energy  producer  committed  to  commercially  developing  natural gas for transportation.  He  said  they  are  hearing  from  fleets  that  are  being  told  they  need  to  look  at  natural  gas  as  an  option, which he believes is a good thing, not just  for the industry, but for the country. "This is good for North America because this is  a North American fuel," Hill said. But  what  anyone  involved  in  the  natural  gas  transportation industry will tell you is that there is a  "chicken and the egg situation" going on right now.  "With  LNG,  it's  what's  first:  who's  buying  the  truck or who's building the station," Hill said. "We  realized  that  fleets  wanted  to  test  the  technology  first  before  making  the  bigger  investment  in  converting all of their trucks." 12 March 2013  To serve this need, Encana offers a mobile fueling solution for LNG vehicles, which allows fleets to  test the fueling experience with one to ten trucks.  "That allows them to make a better decision," he  said. It also puts the fueling equipment in a fleet's  yard, but not permanently. "There's  no  need  to  put  capital  in  a  permanent  structure," Hill said. The company offers packages to  fleets  at  a  cost  that  includes  bringing  the  equipment  in, training the drivers and providing the LNG, among  other services like maintenance issues and upkeep.  "We can offer that at a cost that's 20 to 30 percent lower than diesel," he said.  Also,  because  of  the  mobility  factor,  this  is  a  good solution for fleets that need to move around.  "We  had  one  fleet  that  needed  to  move  from  Louisiana  to  East  Texas  and  they  were  able  to  do  it because they had the mobile (fueling solution),"  said Hill. The  mobile  fueling  approach  to  natural  gas  fleets  is  a  bit  different  than  what  companies  like  Clean Energy are doing, which is building stations  at the fleets as well as public LNG stations.  "We've  built  70  (public)  stations  so  far,"  said  Gary Foster, Clean Energy's senior vice president of  corporate communications. The company is working  with  Flying  J  to  build  solutions  for  long-haul  trucks using LNG. Foster said they are building "America's Natural  Gas Highway," as Clean Energy calls it, identifying  key locations to fuel LNG trucks border to border.  These  70  stations  completed  the  company's  first  phase of cross-country infrastructure. "That's fantastic," Hill said and added that Encana's  solution  is  complimentary  to  what  Clean  Energy  is  doing. "There are lots of moving parts to this," from  the trucks to the stations to the fleets adopting this. "It's a whole new way to fuel," he said. In the coming months, the 11.9 liter engine will  be coming out and both David Hill and Gary Foster  say that's critical for the LNG market.  NPN Magazine  n  www.npnweb.com

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