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Natural Gas in China’s Transport Sector Dr. Tao Wang Assistant Dean, CBNRI Non-Resident Scholar, Carnegie-Tsinghua Center for Global Policy 2016.3
NaturalGasinChina’sTransportSector
Dr.TaoWangAssistantDean,CBNRINon-ResidentScholar,Carnegie-TsinghuaCenterforGlobalPolicy2016.3
MarketStatus
DrivingFactors
MainChallenges
37%
42%
56%
37%
9%
0%
10%
20%
30%
40%
50%
60%
0
100
200
300
400
500
600
2010 2011 2012 2013 2014 2015
万辆
CNGV LNGV GrowthRate
NumberofNaturalGasVehiclesInChinaAndItsGrowthRate
China’s NGV increased dramatically from 1.1m in 2010 to 5m in 2015
(including 0.2m LNGV), with a yearly growth rate of near 40%.
China now ranks first in terms of NGV numbers across the world.
Source：Li Yongchang， CBNRI
DualFuelCar,46%
NaturalGasBus,17%
DualFuelBus,3%
NaturalGasTruck,19%
DualFuelTruck,15%
China’sNGVproducVonbytype，2014
According to the naVonal plan, China’s producVon capacity of
LNGV and CNGVwill reach 1.2m/year in total by 2020, inwhich
1.0marecarsand0.2marebusesandtrucks.
Source：CNPCRI，CBNRI
-100%
-50%
0%
50%
100%
150%
200%
250%
0
10000
20000
30000
40000
50000
60000
2011 2012 2013 2014 2015
NGHDVProducVon NGHDVgrowth
LNGHDVin20142.1%
DieselHDVin201497.9%
Fuel
Technology
• CNG • LNG
• Battery Electricity Drive
• Clean and efficient, fully combusted
• CNG——High pressure in canister, risk
• LNG——safe, big tank
• Electric control system • Battery technology and life • Electric motor
• CNG Vehicle -short distance, small vehicle
• LNG Vehicle - long distance, 500~1000km, heavy duty
• HPEV & BEV • Passenger & Commercial
Type
NG Vehicle & EV
Natural Gas Vehicle Electric Vehicle
0.73 4.67
7.6711.97 13.2
0.3
0.85
2.83
5.33
6.438
95%
73%
42%
15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
5
10
15
20
25
2010 2011 2012 2013 2014 2015
LNG汽车保有量（万辆）
数据来源：中国汽车工程学会，ICIS
其他LNG汽车
LNG重卡
年增长率
l LNG Vehicle LNG vehicle development slows after oil price fell
ü Less economic competitive with low oil price ü Overall freight industry depressed
872
6937
0
100
200
300
400
500
600
700
800
900
1000
CoastalLNGVessel InlandRiverLNGVessel
LNGVesselsinWaterTransport,2014
China’s Ministry of Transport delivered a pilot project list of LNG
vessels in 2014. It covered 978 vessels in total, in which only 106 are
inland river LNG vessels, including 69 newly built vessels and 37
retrofitted vessels.
Source：CNPCRI，CBNRI
Ø Now 32 out of 34 provincial districts in China have natural gas vehicles.
Ø Shandong, Xinjiang and Sichuan rank top 3, with a number of more than 0.4m NGV respectively.
Ø NGV were initially developing in inland provinces with rich natural gas resources, later NGV were popular among coastal provinces with LNG accessibility.
Ø LNG vessel pilot projects are mainly in southeastern
coastal areas like Zhoushan, Shanghai and Lianyungang, while inland projects are primarily in Changjiang River, Xijiang River, Jinghang Canal and Danjiangkou reservoir.
GeographicalDistribuVon
MarketStatus
DrivingFactors
MainChallenges
Environmental
ProtecVon
Driven
NaturalGashasarelaVvelyhighcalorificvalue.ItsemissionofcombusVonaremainlywaterandCO2,withmuchlessSO2,NOxandlead.It’smoreenvironmentalfriendlythanotherfossilfuels.
MosttypesofNGcaronlyemit110-140gCO2perkilometer,however,agasolinecaremitsmorethan200gofCO2perkilometer. （Wang，2014）。
FuelType Unit ConsumpVonper100km
Price（RMB）
DailyCost(RMB)
93#Gasoline Liter 8 5.6 156.8
CNG CubicMeter 8.2 4.5 129.2
FuelEconomyComparison:CNGvsPetrol
Taking example of a taxi
running350kilometersperday:
FuelEconomyComparison:LNGv.s.Diesel
0%
10%
20%
30%
40%
50%
60%
70%
80%
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Jan,2014
Feb,2014
Mar,2014
Apr,2014
May,2014
Jun,2014
Jul,2014
Aug,2014
Sep,2014
Oct,2014
Nov,2014
Dec,201
4
Jan,2015
Feb,2015
Mar,2015
Apr,2015
May,2015
Jun,2015
Jul,2015
Aug,2015
Sep,2015
Oct,2015
Nov,2015
Dec,201
5
Jan,2016
Feb,2016
0#DieselPrice（RMB/ton） LNGPrice（RMB/ton） RaVo（equivalentcalorificvalue）
LNG Price to Diesel Price，2014-2016 Note：LNG calorific value 49.9MJ/KG，0# calorific value 46MJ/KG, Source：CEIC，CBNRI
TechnicalAdvantage
ü HighmaturityofNGVtechnology.Taxisandcarscaneasilygetrefieedfromgasolinepoweredtonaturalgaspowered.
ü BeeersafetyevaluaVon.①Highburningpoint②Low
density,hardtodetonate。 ③Highoctanevalue.
ü Beeeremissionstandard.NaVonalVstandardarewidelyusedinnaturalgasvehicles,whileitsVlltakes2or3tearsforgasoline/dieselvehicletoadaptnaVonalVstandard.
ü NaturalGasengineislow-temperaturetolerant.Also,itsservicelifeislongerduetonotemifngparVculatemaeer.
MarketStatus
DrivingFactors
MainChallenges
CNG/LNGRefueling
StaVonNetworkisTooWeak
InsufficientnumberofstaVons
GasstaVoncosttoohigh
Difficultyingefngland
Approvalprocesstoo
verbose
IncompleteStandardSystem
CompletedVehicleInspecVon
NaturalGasEngine
DedicatedDevice
GasContainer
GasQuality
DualFuelEngineStandard
VehicleDetecVon
Standard
CNG/LNGRefuelingMeteringStandard
ExisVngStandard Standardlacking
HighUpfrontCost,InsufficientMaintenanceResource
×HardfordriverstotroubleshootaNGVonitsown.
×InsufficientNGVtechnicians.
×Maintenanceresourcesunevenlydistributed.
×MaintenanceVmetoolong.
×LackofNGVspecialparts.
THANK YOU!
Q&A
