Encana looks to boost CNG in Wyoming

Posted by admin | On: May 09 2011 | Comments (0)

Virgil Pena can drive his van 250 miles for about the cost of a pizza.

“Whole tank, $12,” he said while fueling up at a gas station this week in Evanston.

Pena’s van runs on compressed natural gas, an alternative fuel that’s both cheaper and cleaner than gasoline. He uses it to power his regular work trips between Salt Lake City and Rock Springs.

On the flat, the van runs the same as a traditional gas-powered vehicle. It’s a little more sluggish on hills, but for the most part, it’s similar to any other vehicle on the road, Pena said.

“The only difference is the fuels, and the emissions are different, too,” he said.

Right now, there are only about 500 vehicles in Wyoming that run on CNG, said Alexine Hazarian, a business analyst for natural gas giant Encana. But that number could soon increase.

Over the next three years, Encana plans to convert its 200-vehicle Wyoming fleet to run on compressed natural gas. The company is also helping to open Wyoming’s first public CNG stations north of the I-80 Corridor.

The stations, in Riverton and Marbleton, will open in July. They will bring the total number of public CNG stations in Wyoming to 10.

By developing more stations, Encana hopes to get past the “chicken and the egg” dilemma: Consumers won’t buy CNG vehicles because there’s no place to fuel them, but companies are hesitant to invest in infrastructure until public demand grows for CNG.

“We want to provide enough infrastructure for public access,” Hazarian said.

Encana will use the Riverton station to fuel its own vehicles. At least one other company is also planning to fuel its fleet there.

Companywide, Encana plans to convert 1,500 vehicles to run on compressed natural gas. It’s a considerable investment. For pickups, the process costs about $10,000.

Cost is a driving force behind the decision to convert its fleet to run on compressed natural gas, Hazarian said. In Rock Springs, the CNG equivalent of a gallon of gasoline costs $1.29. A gallon of regular gasoline costs nearly three times that amount.

“It is a value proposition for Encana to save money and to increase usage of natural gas,” she said. “Because natural gas is a domestic, Wyoming resource, it helps reduce costs for the company … it’s affordable, it’s cleaner and it’s a reliable product.”

The state of Wyoming is also investing in CNG vehicles. Lawmakers recently allocated $200,000 to convert 20 vehicles to run on compressed natural gas.

Rep. Jim Roscoe, D-Jackson, sponsored the legislation. Converting vehicles to run on CNG could benefit the state economically, he said.

“The fleet that the state has, you could save a lot on transportation costs by using CNG,” he said.

Some lawmakers view the technology with skepticism, Roscoe admits. His original bill allocated $1 million for CNG conversions, but the Senate Appropriations Committee was uncomfortable devoting that much funding to the alternative fuel.

“It’s sort of typical of a new idea,” he said. “People aren’t that fast to embrace these things.”

Still, Roscoe is encouraged enough about CNG’s prospects that he’s planning to sponsor another bill to expand the program. The price difference between natural gas and gasoline has only increased since the last legislative session, he noted.

Besides the economic benefits, the fuel would help to reduce dependence on foreign oil and would expand the market for natural gas, Roscoe said.

Article source: http://www.cngnow.com/EN-US/NewsAndEvents/Pages/Tools/pageRedirectById.aspx?ID=432

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