Seeking Alpha discusses the growing usage of natural gas as a transportation fuel in the US and how this might impact natural gas prices.

Back in July and August we told you the governors of 22 US states approached several US auto manufactures with a proposal to purchase compressed natural gas vehicles for their fleets. The automakers were invited to submit bids for upwards of 1000 CNG vehicles desired by these states. Responses from auto manufacturers and dealers were due September 7th and purchasing officials expected to award a contract by October 5th.  We are now advised that the bids are in and the winners announced. This week Oklahoma Governor Mary Fallin and Colorado Governor John Hickenlooper released the bid details. Over 100 bids were submitted by dealerships in 28 states throughout the nation representing Ford, Chrysler, General Motors and Honda. The cost savings from the bid process range from 4% on cargo vans to 16% on 3/4 ton pick-up trucks.  Hickenlooper said he expects the coalition of 22 states will agree to buy as many 10,000 CNG vehicles annually if U.S. automakers build them.

Chrysler will be supplying heavy duty Ram pick-up trucks to 19 of these states we learn from PR Wire.

The Scranton Times-Tribune reports that Pennsylvania municipalities and local transportation organizations can start applying for grants to convert their fleets to CNG in December. The state is making $20 million available for these conversions.

NGV Global News posts the US state of Virginia and Clean Energy Fuels Corp. have entered into an agreement that will see a minimum of 6 CNG public fueling stations in the state and special pricing for state and local governments. In addition, Clean Energy will convert state and local vehicles to run on natural gas. See also hybridCARS Clean Energy To Provide Natural Gas To Virginia.

The Kansas City Star reports that a taxi company in this US city is moving to compressed natural gas (CNG). Checker Transportation Group, which operates Checker Cab and City Cab, recently added two cabs powered by CNG to its Johnson County fleet and will have five within a year.

NGV Global News notes crude oil tanker trucks are being converted to LNG in China’s Sichuan province. After successfully converting two diesel powered trucks to LNG, two local companies plan to convert an additional 60 vehicles this year.  Tests showed that LNG could save the companies about 30% on their fuel costs.

The same source tells us European logistics service provider Vos Logistics has acquired five new trucks that run on liquefied natural gas (LNG). Later this year the company will add another six LNG trucks to its fleet, bringing the total number to 14. LNG trucks can also be driven on LBG (liquefied biomethane or biogas) and have a range of about 1,200 kilometres. The trucks trucks for national distribution in the Netherlands, Belgium and western Germany.

A landscaping company in Madison, Wisconsin is converting 12 of its vehicles to run on CNG. Next-Gen Transportation News say the company, Barnes Inc., intends to convert another 20 vehicles to CNG within the next year and a half.

A landfill in Riverview, Michigan will produce CNG for vehicles we learn from The News-Herald. The city has entered into an agreement with BioCNG, LLC to construct a CNG refuelling station and convert the methane from the landfill into CNG. The city hopes to produce enough CNGto sell to other governmental entities, including nearby communities and possibly the state.

NGV Global News announces Malaysian state oil and gas company Petronas is adding ten more natural gas refueling stations in the south Asian country. The company already operates 174 CNG stations across the country and this will increase to 184 by 2014.

Reuters informs us the US state of Georgia will have 5 new CNG stations. The stations will be located in Atlanta (3), Savannah, and Valdosta. Three of the five stations will offer public access.

BusinessWeek tells us Nopetro has opened a compressed natural gas vehicle fueling station in Tallahassee, Floridaand has plans for 15 more across the state of Florida and three in Georgia.Nopetro plans stations for Daytona Beach, Fort Lauderdale, Fort Myers, Fort Pierce, Gainesville, Jacksonville, Key Largo, Miami, Ocala, Orlando, Pensacola, Sarasota, St. Augustine, Tampa and West Palm Beach. In Georgia, it is planning stations for Atlanta, Macon and Savannah. See also Nopetro offers a glimpse of a natural gas-fueled future.

Still in Florida, the city of Pensacola has a CNG station posts Next-Gen Transportation News. The station is located at Emerald Coast Utilities Authority’s sanitation facility and will initially be open to ECUA and corporate fleets. The site will likely be open to the public in the future. The station features four fast-fill hoses and 90 time-fill dispensers.


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