China Using More Natural Gas Vehicles

We were glad someone finally brought.

In a recent television interview, Boone Pickens told a reporter that he was surprised that there were 9,000 in China bus powered by natural gas.

At a time of alarming events of global warming, it is hard to argue with a transport system that has proven to reduce emissions by 95 percent of particles compared to diesel engines and which also reduces nitrogen monoxide and carbon oxides 75 percent and 49 percent, respectively.

These are the UPS provides statistics about its 800 vehicles now run on compressed natural gas (CNG). Many cities in China could use the same processing clean air. And like any Chinese thing, consumption of natural gas seems to move at breakneck speed.

Air pollution in Beijing and many other Chinese cities of rapid growth was a burning pain in the side of the direction of China. According to the International Association of Natural Gas Vehicles, the most recent statistics (and mostly outdated) show that more than 6.3 million natural gas vehicles (NGV) and more than 10,000 CNG filling stations. From January 2005, China ranked behind the United States in the world rankings for vehicles, eighth and ninth respectively.

The number of CNG vehicles compared to conventional vehicles and diesel fuel is a drop in the bucket. China offers the most immediate promise, which is probably what led Boone Pickens for this market. Headquartered in California Clean Energy Fuels Corp. provides 200 fleet customers, which have about 13,000 NGVs, with the refueling capabilities for vehicles with service stations 168 of the natural gas company.

Constructing distribution networks, consumers in business and government can more easily access the natural gas to fuel their vehicles.

This fact is attested by the dynamics of small China Natural Gas, which serves the city of Xi'an, Shanxi province of China. Compressed natural gas would supply 20,000 taxis, 3,000 buses and 2,000 special purpose vehicles. China Gas Natural now has 23 service stations of CNG city and hopes to expand outside Xi'an, Henan Province. Boone Pickens offers a great opportunity for natural gas in China for the purpose of transport. Face it, China has a huge appetite for energy. CBM China Activity Intensifies

China has a huge appetite for foreign investment to develop all stages of the fuel cycle natural gas. We focus our coverage on the front end of the cycle, particularly in the coal gas methane. It makes sense for China as the country has one of the sources of methane from coal deposits underdeveloped (CBM) gas on the most abundant planet. CBM comes from coal mines and China has the largest number of operating coal mines in the world.

Speaking with Phil Flynn of Alaron Trading Chicago, he told us about the Chinese drive to feed its natural gas transportation system, "We are years behind China." China started the campaign in the country for a power outage.

Approximately twelve months after the Reform Commission and China National Development (NDRC) announced that it approved the coalbed methane development plan in the country, new developments in our radar marched almost every week. June 27, Shanghai CIMIC Life invested $ 196 million to develop a coalbed methane project in Jiangxi province. On July 4, the China National Petroleum Corp began exploring a new discovery of methane from the coal seam in the autonomous region of Xinjiang.

July 6, Shanxi Ganghua Coalbed Methane Corp began China's first major building project of CBM - a proposed liquefaction of coal bed methane.

On July 8, PetroChina (NYSE: PTR) subsidiary signed an agreement with Shanxi Energy Industries to develop a CBM site in Shanxi Province, north China. On July 24, China's NDRC approved a proposal of the first foreign company to develop a coal mine methane in Shanxi province of China. Asian American Gas is the first foreign company to obtain NDRC approval in 20 years, and the first to do so in partnership with state-owned China United Coalbed Methane layer (CUCBM) since the company was formed. China is optimistic about the CBM reserves in the country. There are two years, Xu Dingming, director of the NDRC Department of Energy estimates that the reserves of CBM in China were roughly equivalent to the natural gas reserves.

In December 2006, the Ministers of Finance, Customs and China on taxes agreed to introduce tax incentives for companies that imported equipment for the development of coalbed methane resources.

Since then, state companies and government stepped up efforts to accelerate CBM exploration and development in the areas of China coal.

"Natural gas storage is a buffer against supply," he said. Companies that have already submitted in the past - such as Far East Energy, Green Dragon Gas and Pacific Asia China Energy - have changed their projects forward against a very low tide. Many US investors have not gone beyond their borders in developments projects of coal and natural gas. The price of natural gas in North America is relatively insignificant in Beijing or Xi'an.

These companies should benefit from the recent acceleration in China for more methane, natural gas or CBM, to power their vehicles. The bus consumes on average about 70 cubic meters of CNG per day (CNG). A typical taxi uses an average of 30 cubic meters of compressed natural gas each day.

A strong sales argument for the increased use of natural gas vehicles: the price of fuel. A hybrid vehicle, which also uses the compressed methane gas reduces the fuel costs by 60 percent. As American consumers feel to pay $ 1.20 per gallon instead of $ 3 / gallon at the gas pump? In early July, W.R. Hambrecht rated Energy Fuels to Clean a "buy" with a target price of $ 18, in his appearance at the recent Television, Pickens noted two analysts took the company. "We think (natural gas filling stations) will be very large company in China" This development is not different from the growth of mobile phones in China. CNG filling stations construction will help to stimulate demand to bring more natural gas and CBM in China's distribution network. By devoting its energies on the development of their transport systems with increased consumption of natural gas, the history of atrocious pollution of the country can be reversed.