Vehicles

Reminding the public of the benefits of clean-burning natural gas derived from Pennsylvania shale development, Pennsylvania oil and gas industry organizations have rolled out a one-minute commercial video titled “Natural gas does that.”

Mercedes-Benz is providing DHL Express Mexico with Sprinter compressed natural gas (CNG)-gasoline bifuel vehicles. DHL previously said it is satisfied with the performance of the 15 MB Sprinter model, which first was deployed in November in Mexico City. The vans are part of a 218-vehicle delivery from the auto manufacturer’s Mexico arm, including 181 Sprinters, 32 Vito vans and five Smart cars. DHL reported its overall investment was about US$10.5 million. The four-cylinder, 1.8-liter natural gas engines represent “the first natural gas-powered Sprinter fleet in the Americas,” according to DHL.

Legislation to extend tax credits that support the conversion of conventional vehicles to run on cleaner fuels, such as natural gas, is awaiting the signature of Oklahoma’s governor after passage by the state House. The incentive, which covers about half the cost of converting a typical vehicle and three-quarters of the cost of establishing an alternative fueling station, will be extended until 2020. The incentives are expected to cost the state — a major natural gas producer — $1.5-2 million per year.

Just as a report from Morgan Stanley (MS) was declaring natural gas vehicles (NGV) as the energy market “wild card,” U.S. NGV suppliers continued in late April to roll out more products.

By 2025 natural gas is expected to overtake coal as the second most used fuel worldwide and North America will have transitioned to become a net energy exporter, while by 2040 global energy demand will have increased by almost 35% from 2010 levels, according to ExxonMobil Corp.’s Outlook for Energy: A View to 2040, which wasreleased Tuesday.

Natural gas vehicles (NGV) are finding growing demand throughout North America, including Mexico, according to presentations at the recent NGV Global 2012 conference in Mexico City. Tepeapulco, Mexico-based Dina Camiones said it has an order for 50 compressed natural gas (CNG)-fueled intercity-suburban route buses that would be built in 2013 for use in the Guadalajara area. With a range of more than 500 miles, the buses include 8.9-liter ISL G engines from Cummins Westport and advanced carbon fiber-on-aluminum CNG fuel cylinders from Luxfer.

Altoona, IA, will be home to the state’s first liquefied natural gas (LNG) fueling stop for long-haul trucks and other vehicles operating on LNG, following recent approval of a site plan by city officials.

State legislation is likely next year in Florida to help boost the use of natural gas vehicles (NGV), according to a state House representative who is a leader on energy issues. The comments by state Rep. Lake Ray (R-Jacksonville) came as a Florida NGV organization was formed and an economic impact study released.

Low natural gas prices have created a buying opportunity among dry gas-directed companies for larger players whose pockets are lined with oil dollars, according to consultancy Deloitte. And in the midstream, mergers and acquisitions (M&A) will be propelled by a consolidation trend among master limited partnerships (MLP), according to the firm’s midyear report on M&A activity.