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CNG for 34 Cents/Gal Equivalent! Fill ‘Er Up for Price of a Coke

This story will appear to be inaccurate, or a “too good to be true” story. We assure you it is not. In December Congress passed a new law granting a retroactive (for 2015) tax cut on alternative fuels, and proactive tax cut for 2016. It amounts to a 50 cent savings per gallon equivalent for things like compressed natural gas (CNG). Following the tax cut, 7-Eleven Stores in Oklahoma at their locations with CNG pumps, reduced the price of their CNG to 39 cents per equivalent gallon of gasoline. If you use the 7-Eleven debit card, you can get it for 34 cents per equivalent gallon. No lie: you can fill up your CNG car up at 7-Eleven for little more than the price of a 20-ounce bottle of Coca Cola! Now THAT’s incredible…
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UPS Adds 64 New LNG Tractor Trailers to Fleet in Harrisburg, PA

Two years ago we tipped our hat to UPS, the worldwide package delivery service, for their commitment to growing their natural gas fleet with a plan to add 700 new LNG (liquefied natural gas) tractor trailers to the fleet (see UPS to Grow NG Fleet with Additional 700 LNG Tractor Trailers). Good news: UPS has done it again. The company announced last week they are adding another 64 new LNG tractor trailers to the fleet–this batch based in Harrisburg, PA. No doubt cheap, abundant Marcellus Shale gas had something to do with that decision…
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Trucking Co Building CNG Station in Scranton, PA for New Fleet

C.A.T. Inc. (formerly Canadian American Transportation) is taking the plunge. They’ve decided to convert nearly a third of their tractor trailer fleet (100 out of 325) to compressed natural gas (CNG). C.A.T. is leasing 100 new CNG tractors from Ryder for their national fleet. In order to ensure those trucks can fuel up, they’ve contracted with U.S. Oil to build five new GAIN® Clean Fuel compressed natural gas (CNG) stations. One of those stations will be located in the heart of the Marcellus Shale–in Scranton, PA–using clean, abundant Marcellus Shale gas to keep the big rigs rolling…
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PA Spending $6M on Program to Convert Vehicles to Natgas

The Pennsylvania Marcellus is a gift that keeps on giving. Pennsylvania Gov. Tom Corbett announced yesterday that the third round of funding from Act 13 funds to convert vehicles to run on natural gas will open tomorrow–August 30th. So far PA has collected over $600 million in “impact fees” from Marcellus drillers under the Act 13 law passed by Corbett early in his administration. Most (60%) of impact fee revenue goes back to the local communities where drilling occurs–to compensate them for the hassles or “impacts” that come with drilling. But 40% of the impact fee money goes to communities (or programs) with no active drilling. We uncharitably call it political walking around money. Necessary to grease the hands of greedy politicians. Some of that walking around money goes to fund the conversion of cars and trucks to run on compressed natural gas–a worthy cause in our opinion. This time around $6 million of impact fee money will go to fund natgas vehicle conversions. Who can apply? Just about anyone–except individuals. It must be a company, non-profit or government agency/entity…
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CNG Truck Fleets Now Mainstream? NY Company Buys 15 CNG Trucks

Is this a sign of things to come? The “received wisdom” has been that compressed natural gas (CNG) used to power cars and trucks is more hope and wishful thinking than it is reality. But maybe, just maybe, the tide as now turned and CNG is more reality than it is hope. Case in point: Trillium CNG, a subsidiary of Integrys Energy Group Inc., announced last September that it will build a new CNG fueling station next door to Willow Run Foods in Kirkwood, NY. Yes, Kirkwood, NY is in MDN’s own backyard! Willow Run Foods is a large packaged foods company that delivers food to fast food restaurants in 14 East Coast-area states.

With trucks running to 14 different states, some of which run on CNG, you have to ask–how will they get home? They’ll have to fill up somewhere. Which means there are enough CNG fueling depots scattered around, at least for some of their regular runs, that CNG will work. Oh, and diesel fuel right now (in the Binghamton area) is $4.37 per gallon. The equivalent CNG is $2.60–so you can see why Willow Run has invested in 15 CNG rigs.
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OSU Tech/Money Backs Ohio Start-up Bringing CNG to Everyone

We have a chicken and egg problem with CNG (compressed natural gas) vehicles: you need vehicles with engines converted, or designed, to run on CNG, and you need a way to fuel up. Detroit is listening–they’re coming out with a flurry of new CNG vehicles this year, including the Ford F-150 pickup truck. The only thing holding it all back seems to be a way to keep the tank filled. Americans have always been of the mindset that you head on down to the local filling station or these days, convenience store, to fill ‘er up. Filling stations are slowly beginning to offer CNG (and along interstate highways, LNG for big rigs), but it’s not happening nearly fast enough.

Since you can burn the very same natural gas in your vehicle that you use to heat your home and cook with, wouldn’t it be great if there were a box you could hang on your garage wall that enables you to compress the gas from the local utility company to be used at home–just fill ‘er up at home? Wow, that would be awesome–and that’s just what an Ohio start-up company, using technology innovated at Ohio State University, is doing. With a $1 million investment from OSU, Simple-Fill is launching a very cool solution for businesses and homeowners that will enable them to use their existing natural gas hookup to fill up their CNG vehicles. Imagine never having to stop by the convenience store again (except to pick up a lottery ticket)…
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Energy Industry Leaders Gather at Platts Forum in NYC

One week ago, MDN editor Jim Willis attended the Platts Global Energy Outlook Forum in New York City. The Forum, an annual event that attracts the titans of the worldwide energy industry, was held at the swanky Waldorf Astoria Hotel. Although Jim has been traveling to NYC for years and prides himself on his ability to navigate Manhattan on the subway, every now and again he botches it–like this time. So he ended up walking an extra 6-7 city blocks after getting off at the wrong stop (doh!). But that’s OK. It was a brisk day and the walk did him good.

Rather than get on the ungodly 3:10 am bus from Binghamton to NYC, Jim elected to ride the 6:10 am bus, which was late arriving at the Port Authority due to traffic at the Lincoln Tunnel. So he missed the first session and joined the second session shortly after it had begun. But wow, what a session it was! Below Jim shares his notes from the session “Switching, Ditching and Bridging Fuels,” his notes and impressions from the lunch keynote address by DOE Sec. Ernest Moniz, and his notes from the afternoon session titled, “Midstream Gathers Momentum”. Jim got to hear some of the biggest names in energy. It was all a bit heady for a “small time” natural gas blogger with an attitude…
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21 LNG Fueling Stations Coming to NY in Next 5 Years, Maybe

Recently MDN brought you the story that New York State is the only state in the union that does not allow liquefied natural gas (LNG) storage and fueling stations (see LNG Storage/Fueling Stations Latest Anti-Drilling Target in NY). Such facilities were banned after a tragic accident at a Staten Island LNG facility killed 40 workers in the early 1970s. Wacko anti-drillers oppose building new ones because, well, they’re wacko. Calmer heads, however have prevailed and the Dept. of Environment Conservation expects to finalize new regulations early next year to allow construction of LNG storage/fueling facilities that can super-cool and store natural gas in a liquefied state.

Why is it important that NY get with the program? Why do we need LNG anyway? Because entire trucking fleets–like that of UPS–are converting from diesel to LNG because it’s cleaner burning and cheaper. LNG is a true win/win, regardless of what the ninny nanny naysayers say. Once the new regs are in place, the DEC estimates NY will see 21 new LNG facilities built over the next five years…
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First-Ever Ford F-150 CNG/LPG Model Roles Off Assembly Line

This not technically a Marcellus/Utica story, but it certainly will impact the northeast and natural gas supplies in years to come. Ford announced last week the very first 2014 Ford F-150 truck, the best selling truck ever, has just rolled off the assembly line in Kansas City–and it has a CNG/LPG option! In fact, Ford will offer eight models for the 2014 model year and says they are on track to sell 15,000 CNG vehicles. MDN previously alerted you that Chevrolet is launching a CNG version for one of their most popular sedans–the Chevy Impala–next summer (2015 model year). Is this the dawning of the natural gas vehicle renaissance for consumers? We sure hope so.

The exciting Ford announcement from last week:
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MDN Digs FC’s NatGas Vehicle Whitepaper – You Will Too

Need to get a really good handle on what’s happening right now in the natural gas vehicles (NGV) market? Oh, and please throw in your best thinking on what will happen over the next 12 months? We have the answer. FC Business Intelligence, a UK-based conference and events company–knows a thing or two about the natural gas market. They’ve been hosting must-attend natgas industry events for quite a while, including a yearly event on NGV. In advance of next year’s event, the 3rd Natural Gas Vehicles USA (June 11-13 in Houston, TX), FC Business Intelligence has authored a 44-page white paper on NGVs in the US–a sort of “state of play” for the NGV market.

MDN downloaded the white paper (see it below). It’s chock-full of great information. This is not a generic-lightly-gloss-over-warmed-up-rehash-of-other-information treatment. There’s meat in this paper–serious research–and it’s well worth your time to read it if you have an interest in NGVs and what will be one of the most important sources of demand for natural gas in the coming years. MDN has chronicled how fleets, like that of UPS, are dumping diesel and changing to LNG (liquefied natural gas) and CNG (compressed natural gas). Problem is, where do NGVs fill up on either CNG or LNG? Where are there plants (supply) in the US that create LNG? It’s all in this white paper, and more…
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PA DEP Sec. Abruzzo Announces Winners of $3M in CNG Grants

Part of the Pennsylvania Act 13 law, passed in early 2012, is a provision called an “impact fee” collected from Marcellus drillers (ultimately from landowners, because fees and taxes are always passed down the line). The first year the fee was collected it brought in over $200 million. The so-called fee is really 60% fee and 40% tax, as we’ve written about many times before. Why? Because 60% of the money collected stays in the communities impacted by drilling–for use with first responders, roads, etc. The other 40% is what MDN calls “walking around money”–money that’s spent by politicians in Harrisburg to curry favor with voters (i.e. vote buying). A lot of that money goes to southeastern PA (Philly area) where there is no drilling–but such was the sleazy political price to be paid in order to pass the legislation. Yes it stinks–but it is what it is.

If there’s any good use for a teeny tiny sliver of the 40% walking around money, it happened yesterday in Scranton, PA, where the PA Dept. of Environmental Protection (DEP) Sec. Chris Abruzzo was on hand at the Cabot Oil & Gas’ “CNG Celebration” event at Johnson College (see our companion story today about the event). Abruzzo was there to announce the list of grant winners who will share in $3 million of Act 13 money to purchase, refit or supply filling stations for vehicles to run on compressed natural gas (CNG). By handing out this seed money, Gov. Tom Corbett hopes to encourage more companies and organizations to switch to cheaper and much less polluting natural gas as a power source. Below is the DEP announcement and list of winners of this year’s grant. The DEP will be back next year with even more money to award. They start accepting applications on Saturday…
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Cabot’s Big CNG Celebration at Johnson College in Scranton, PA

Yesterday Cabot Oil & Gas held a “CNG Celebration” at Johnson College in Scranton, PA. Unfortunately MDN could not be on hand to help celebrate. However, we do have a couple of stories to bring you from that event.

The purpose of the event was several-fold: announce Johnson College’s curriculum expansion with new courses in compressed natural gas (CNG) technology and eventually a certification (with financial and technical assistance from Cabot); PA DEP Sec. Chris Abruzzo was on hand to announce $3 million in grants to businesses and organizations to purchase or retrofit vehicles to run CNG (see our companion story today); welcome the Marcellus Shale Coalition’s new executive director, David Spigelmyer; and show off some impressive big trucks and other vehicles running CNG. “Celebration” is an appropriate word that about covers it!…
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PA University First to Operate CNG-Powered Commuter Trolley

We certainly hope this portends a trend. Lock Haven University (Clinton County, PA) is the first PA institution of higher learning to have its very own compressed natural gas (CNG)-powered commuter trolley which is now scooting students hither and yon around town. Radically lower air emissions, way cheaper to operate–what’s not to like? All thanks to cheap, abundant, fracked Marcellus Shale gas.

Ding ding. All aboard!…
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Chesapeake Axes CNG Vehicle Program Too :-(

It seems that Chesapeake CEO Doug Lawler’s ax-wielding will affect more than just the company’s bottom line–it may affect all of us. The brisk pace of layoffs at the company continues (see God, Veggies & Bees – What’s Next on the Chesapeake Chopping Block?). Sadly, one of the programs deeply affected by these reductions is the division set up to grow usage of compressed natural gas (CNG) vehicles by average consumers.

Chesapeake has been one of the leaders in producing technology to make it possible for consumers to “fill ‘er up” with CNG. However, the company’s CNG division has now also come under the budget ax, which means retail CNG efforts in this country will, at least for a time, be “substantially diminished”…
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New Trend? LNG for Domestic Transportation Bursts on the Scene

Is LNG used for domestic transportation in the U.S. about to take off in a big way? We’re not yet sure, but one thing is for sure: there are a number of companies investing in and talking about just that. MDN ran another LNG story today about a new initiative from GDF SUEZ called the advanceLNG Project (see Potential New Market for Marcellus/Utica Gas: LNG for Use in U.S.). And then–seeming out of nowhere–another LNG story. Boone Pickens’ Clean Energy Fuels company is partnering with with Ferus Natural Gas Fuels and GE to build “micro LNG” plants in five states, including Ohio.

So, what’s a micro LNG plant? We explain…
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Cabot Launches CNG Fueling Station in NE PA

MDN editor Jim Willis (that’s me) had the pleasure of a late summer/early autumn drive from Binghamton to Dimock, PA yesterday. I attended the official opening of Cabot’s compressed natural gas (CNG) facility near Dimock. On hand for the ceremony were not only officials from Cabot, but also local politicians, a rep from the state DEP, local colleges and others.

George Stark, Cabot’s chief spokesman and director of external affairs, kicked off the event by calling the Marcellus Shale in Susquehanna County (the only place in PA they drill), a “generational” shale play. He said “production here is just prolific” and that what Cabot and others are doing in Susquehanna County is “changing the world.” His comments may seem like hyperbole, but indeed they are not…
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