U.S. LNG Supply for Natural Gas Vehicles Set to Double: Clean Energy Fuels Corp (CLNE), Chesapeake Energy Corporation (CHK), Martin Midstream Partners L.P.(MMLP)

Page 1 of 2

Clean Energy Fuels (CLNE)Royal Dutch Shell plc (ADR) (NYSE:RDS.A) recently announced it would build two new liquefied natural gas (LNG) fuel plants to supply all types of heavy-duty natural gas vehicles. Royal Dutch Shell plc (ADR) (NYSE:RDS.A)’s general manager for the America’s, James Burns, estimated these will double the liquefied-gas manufacturing capacity in the U.S. and Canada.

LNG is not to be confused with compressed natural gas, or CNG, which is used in cars and light-duty trucks. LNG is used in large-scale trucks, boats, and industrial uses. It is better for large vehicles to use LNG as it is much denser than CNG, requiring less storage space on board. With CNG or LNG, the big draw is cheaper refueling costs. A gallon of CNG ranges in price from $0.80 to $1.70.

Challenges
As my colleague Arjun Sreekumar wrote recently, there are two challenges holding back natural gas vehicles:

1. High upfront costs.

2. Limited refueling capacity.

For truckers and other heavy users of fuel, the cheaper refueling costs easily make up for the high up-front costs in around a year. It’s really the limited refueling capacity that is holding truckers back from making the switch.

The limited refueling capacity is being worked on by the likes of Clean Energy Fuels Corp (NASDAQ:CLNE) and TravelCenters of America LLC (NYSEMKT:TA) to make LNG a viable option for truckers in the future. Clean Energy Fuels Corp (NASDAQ:CLNE), with financial backing from Chesapeake Energy Corporation (NYSE:CHK) , is developing a network of 150 LNG stations at Flying J truck stops across the county. For its part, TravelCenters of America signed a memorandum of understanding with Royal Dutch Shell plc (ADR) (NYSE:RDS.A) in June 2012 to build natural gas refueling lanes at around 100 TravelCenters of America truck stops around the country.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!