Science

Cold Natural Liquefied Gas Could Heat Trucks Slowly

By Paul Pajarillo , Nov 09, 2015 12:26 AM EST

President Barack Obama approved a bill to change taxation codes on liquefied natural gas. This is on an equal basis along with propane versus diesel fuels. Though LNG could become cheaper than diesel, truck operators may not be able to adjust hastily due to high amortizations on truck operations.

Natural gas has its advantages when it comes to low emission alternative diesel-powered long-hauling trucks. In addition to low emissions, liquefied natural gas is abundant in supply and does not come with critical shortcomings when it comes to hauling and truck performance. Additional expenses on LNG-powered trucks could keep truck operators hands-off with regard to the matter.

Although diesel is more expensive than LNG, truck operators may not be able to adjust abruptly due to a truck's lifespan along with other expenses either for new truck purchases or for old truck conversions from diesel to LNG.

According to a research conducted by Navigant, the changes in policies that surround LNG could boost the natural gas usage to trucking companies. Unlike compressed natural gas, LNG is cooled until it transforms into liquid form. Being denser than CNG, LNG is easier to transport via land from specially equipped trucks. Compared to CNG, a pipeline is used to transport it.

United States President Barack Obama has already signed an agreement with regard to the taxation laws that surround LNG and propane gas to have an equal basis compared to diesel. Previous tax codes applied to LNG by volume instead of its energy substances.  A gallon of LNG has about 42 per cent less energy compared to a gallon of diesel. Therefore, LNG has higher taxes that bring fuel retail prices much closer. With the signing of the U.S. President, LNG has dropped to about 50 per cent since 2008.

With the LNG tax drop, Navigant expects the U.S. LNG fueling stations to double by 2020. It is believed in the research that low prices will encourage more trucking companies to develop their own fueling centres that also come with purchasing LNG trucks and conversion of diesel-powered trucks to LNG trucks.

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