Natural gas the fastest growing alternative fuel for motorist

1
Natural gas the fastest growing alternative fuel
for motorist

• Mr.Nuttachat Charuchinda
• EVP. Natural gas for vehicles,
• PTTPLC.
• 22 May 20090

2
Contents

• NGV in Asia Pacific-Fast growing region
• Key Drivers Success Factors
• Case Study The Rapid Growth of NGV in Thailand
• Conclusion

3
Contents

• NGV in Asia Pacific -Fast growing region
• Key Drivers Success Factors
• Case Study The Rapid Growth of NGV in Thailand
• Conclusion

4
Asia Pacific Natural Gas Vehicles Association
(ANGVA)

• VISION
• To make natural gas the transportation fuel of
  choice.

 Asia Pacific Region 58 Countries
(Asia Pacific region comprises of countries in
the United Nations Asian Regional Group and
Australasia).

• MISSION
• Assisting members in their NGV business.
• Reducing emissions and greenhouse gases.
• Optimising the use of indigenous fuel.
• Establishing a platform for harmonising
  standards.
• Encourage development of NGV technology and
  refuelling infrastructure.

• Website www.angva.org
• Secretariat Office Malaysia.
• Memberships 77 members from 20 countries (as of
  2nd April 09).

5
Status of NGV in Asia Pacific

• 9.6 millions vehicles and 14,550 stations
  worldwide with 4.95 millions vehicles and 6,600
  stations in Asia Pacific region.
• Among the top 10 NGV countries worldwide, 6 are
  from the Asia Pacific.

(Source Asian NGV Communications GVR magazines
Aug 08 Others)
6
NGV Growth in Asia Pacific

• There are 21 countries with NGV programme in Asia
  Pacific.
• The NGV market in Asia Pacific region has grown
  rapidly in the last 5 years, growing at an
  average of 40 per year.

(Source Asian NGV Communications GVR magazines
Others)
7
Current NGV Markets in Asia Pacific
4.95 Millions Natural Gas Vehicles and 6600
Stations in Asia Pacific
(Source Asian NGV Communications GVR magazines
Feb 09 Others)
(Source Asian NGV Communications GVR magazines
Others)
8
Pakistan NGV Market
Human Population (2006) 159 million. Pakistan
Oil Reserves (2006) 0.3 Billion Barrels.
Pakistan Gas Reserves (2006) 28.15 TCF (
5.067 billion barrels equivalent of oil)
No. of Vehicles 2,000,000 No. of Stations
2,700
Source Energy Information Administration (EIA),
USA, country analysis, Dec 2006
9
Iran NGV Market
Human Population (2006) 62.92 millions. Iran
Oil Reserves (2006) 132.5 Billion Barrels.
Iran Gas Reserves (2006) 971.15 TCF (
174.807 billion barrels equivalent of oil)
No. of Vehicles 1,215,593 No. of Stations
764
Source Energy Information Administration (EIA),
USA, country analysis, Dec 2006
10
India NGV Market
Human Population (2006) 1.001 billions. India
Oil Reserves (2006) 5.8 Billion Barrels.
India Gas Reserves (2006) 38.88 TCF ( 6.9984
billion barrels equivalent of oil)
No. of Vehicles 821,872 No. of Stations 402
Source Energy Information Administration (EIA),
USA, country analysis, Dec 2006
11
China NGV Market
Human Population (2006) 1.3 billions. China
Oil Reserves (2006) 18.2 Billion Barrels.
China Gas Reserves (2006) 53.32 TCF ( 9.5976
billion barrels equivalent of oil)
No. of Vehicles 400,000 No. of Stations
1260
Source Energy Information Administration (EIA),
USA, country analysis, Dec 2006
Source Energy Information Administration (EIA),
USA, country analysis, Dec 2006
12
Japan NGV Market
Human Population (2006) 127.6 millions Japan
Oil Reserves (2006) 0.1 Billion Barrels.
Japan Gas Reserves (2006) 1.4 TCF ( 0.252
billion barrels equivalent of oil)
No. of Vehicles 36.345 No. of Stations 327
Source Energy Information Administration (EIA),
USA, country analysis, Dec 2006
13
Korea NGV Market
Human Population (2006) 48.4 millions. Korea
Oil Reserves (2006) 0 Billion Barrels. Korea
Gas Reserves (2006) 0 TCF ( 0 billion barrels
equivalent of oil)
No. of Vehicles 17.123 No. of Stations 121
Source Energy Information Administration (EIA),
USA, country analysis, Dec 2006
14
Contents

• NGV in Asia Pacific -Fast growing region
• Key Drivers Success Factors
• Case Study The Rapid Growth of NGV in Thailand
• Conclusion

15
Key Drivers Key Success Factors of NGV Markets
16
Contents

• NGV in Asia Pacific -Fast growing region
• Key Drivers Success Factors
• Case Study The Rapid Growth of NGV in Thailand
• Conclusion

16
17
Government incentives implementedto promote NGV

• Import Duty
• Exempt Import Duty for
• CNG cylinder and conversion kit type I
• Dedicated NGV of new engine
• Imported CKD bus chassis with engine, CBU
  chassis with engine
• Imported CKD Passenger Van
• Reduce Import Duty for CNG Refueling Facilities
  to 1
• Excise Tax
• Reduce excise tax for
• OEM passenger car and minibus not over 3000 cc.
  engine from 30 to 20
• NGV retrofit outside manufacturing plant from
  30 to 22 but not exceed 1,405 USD

17
Note 1 USD 35.58 Baht (as of 20 April,2009)
18
Government incentives implementedto promote NGV

• Others
• Grant 112 Million USD to be Revolving Fund for
  Passenger Buses that
• Service in BKK and Vicinities area to
  Convert/Install CNG with very low
• 0.5 interest rate annually
• Reduce 50 of Road tax for dedicated NGV and 25
  for Bi-fuel or DDF

18
Note 1 USD 35.58 Baht (as of 20 April,2009)
19
Thailand NGV Market
Human Population (2006) 64.7 millions. Thailand
Oil Reserves (2006) 0.3 Billion Barrels.
Thailand Gas Reserves (2006) 14.75 TCF (
2.655 billion barrels equivalent of oil)
No. of Vehicles 141,335 No. of Stations 310
19
Source Energy Information Administration (EIA),
USA, country analysis, Dec 2006
20
Diesel Substitution base

• The major NGV population ratio is light-duty
  vehicles, but consumption is based on heavy duty.
• Heavy-duty vehicles takes long time to refuel,
  which makes other NGV vehicles inconvenient.
• NGV station expansion needed along highways.

Personnel Cars 9
Taxies/Tuk Tuk 32
Personnel Cars 53
Taxies/Tuk Tuk 33
Buses 16
Trucks/Truck Tractors 11
Trucks/Truck Tractors 42
Buses 4
NGV Population Ratio
NGV Consumption Ratio
21
The lowering Oil price-The weakening driving
force

• Financial support for
• LPG taxi
• Baht 45,000.- each
• Bangkok Clear sky
• with NGV
• (Passenger bus)

134
3,000 (Ave. in Jan)

• Financial support for light-duty vehicle
• Baht 10,000.- each
• Financial support for diesel heavy-duty vehicle
  Baht 400,000.- each

• Financial support
• for LPG taxi
• Baht 45,000.- each
• Revolving fund
• (Soft Loan) 7,000 M

Dubai

• Mandatory new taxi
• to use NGV
• Exempted
• import duty for
• NGV passenger car
• Exempted
• import duty for
• passenger van
• CKD 0 CBU 22

56

• Exempted
• import duty
• for CNG engine
• Reduced excise tax
• for NGV retrofit outside
• manu. plant to 22

- Reduced excise tax for NGV OEM light-duty
vehicle from 30 to 20
85
- Exempted import duty for CNG cylinder
conversion kit
172
66
1,145
NGV Cars - 25,371 Stations - 102
51
NGV Volume
194
NGV Cars - 10,285 Stations - 43

• Encouraged taxi to use NGV (50,000 taxi by 2008)
• Revolving fund (Phase 2) 2 M

390
NGV Cars - 3,998 Stations - 28
NGV Cars - 55,868 Stations - 166
180
140
41
NGV Tech. acknowledged
2004
2006
2009
2005
2007
2008
22
Contents

• NGV in Asia Pacific -Fast growing region
• Key Drivers Success Factors
• Case Study The Rapid Growth of NGV in Thailand
• Conclusion

23
Conclusion

• Natural gas for vehicles (NGV) will continue to
  grow in the Asia Pacific region due to present of
  strong key drivers of Energy, Economics and
  Environment. However, success of NGV programs
  depend on various key factors (challenges) that
  very among the countries.
• The lowering Oil price will have a great impact
  on all alternatives energy being implemented.
• NGV may be the immediate solution for the
  countries where natural gas is indigenous
  available but in the longer term each countries
  will look to more reliable renewable/sustainable
  alternatives .

24
THANK YOU