Gifford Briggs – Louisiana Oil & Gas Association -

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City buses, dumptrucks and fleet vehicles in Lafayette soon could be filling up with the same fuel that powers stoves, water heaters and barbecue pits.

Houston-based Apache Oil Co., which has offices in Lafayette and Houma, has committed to build a compressed natural gas fueling station in Lafayette.

The effort is still in the planning stages but has already piqued the interest of Lafayette Consolidated Government and several private fleet operators.

“We want to do it if we can,” said City-Parish President Joey Durel, citing the cost-saving and environmental benefits of natural gas.

“It’s our homegrown fuel, and we should be doing everything we can to support an industry that’s so important to this state.”

Natural gas has been used in U.S. vehicles since the 1960s, but what was once thought to be a limited supply has kept it from competing with gasoline and diesel as a mainstream fuel.

Now that new technologies have allowed the extraction of natural gas from shale, the U.S. is swimming in natural gas, and it is emerging as a viable alternative.

The problem is that few drivers own CNG vehicles — most are fleet cars, buses and trucks owned by companies and public agencies.

There are even fewer CNG fueling stations, and only half are available for public use.

“We’re trying to break that chicken-or-the-egg conundrum,” said Obie O’Brien, Apache’s vice president of governmental and regulatory affairs.

Apache has already built private CNG stations for its own fleet vehicles in Oklahoma and Texas and plans to build at least five more across the southwest by March.

The company is also in conversations with Houston and Tulsa, Okla., about building larger stations for government or other fleet operators in those cities.

“We believe it’s the wave of the future,” O’Brien said. “Our vision is at some point you’ll be able to pull in at any fueling station in the country and have a choice of gasoline, diesel or CNG.”

The Louisiana Oil and Gas Association is working with Apache to drum up support for CNG in Lafayette.

Representatives are scheduled to meet with Lafayette Consolidated Government and several fleet operators on Monday to gauge local demand.

While tests have shown CNG vehicles to produce 20 percent lower emissions, its main draw for governments and fleet operators appears to be cost savings.

A gallon equivalent of compressed natural gas is more than $1 cheaper per gallon than gasoline, enough to eventually pay off the initial costs of conversion.

The federal government also offers several tax incentives to spur the use of CNG vehicles.

Buyers can receive tax credits of up to 50 percent off the cost of CNG vehicles and natural gas fueling equipment.

Durel said city buses and public works vehicles would be ideal for CNG conversion, since they are primarily used for in-town driving.

He said the city may try to negotiate with Apache to help cover the startup costs for CNG conversion.

“It’s far from being done deal, but it’s potentially a win on many levels,” he said. “I definitely haven’t seen anything that says to quit looking at it.”

Greater Lafayette Chamber of Commerce President and CEO Rob Guidry said he was “very encouraged” by interest among the private sector. Fleet operators like bottling companies and delivery services would be good candidates, he said.

“We would love to be one of the first cities in the nation to convert our local fleets to compressed natural gas,” Guidry said. “It’s good for businesses’ bottom lines, and we would show that we’re a leader in going green.”

Several cities and states are turning to natural gas as it emerges as a viable transportation fel.

Shreveport on the verge of adding five CNG buses and a natural gas station through funding from the federal stimulus package, another potential funding source for Lafayette.

Kansas City, Mo. has been using CNG vehicles since 1997, but accelerated its efforts in 2005 in response to fuel shortages and rising gasoline and diesel prices.

The city currently has about 200 light-duty vehicles and 50 heavy-duty vehicles running on CNG, said fleet administrator Sam Swearngin.

“It’s my position that if you’re a government agency and you’re not running at least a percentage of your fleet on alternative fuel, you’re setting yourself up for a crisis,” he said.

LOGA Vice President Gifford Briggs said Lafayette is a well-suited for CNG because the immense energy infrastructure already in place.

The city’s location along interstates 10 and 49 also makes it a “perfect starting point,” he said.

“We always talk about Louisiana being the energy state,” he said. “Now, it’s time to walk the walk.”

Jeff Moore
jeffmoore@theadvertiser.com

Additional Facts A closer look

Natural-gas vehicle facts:
n There are more than 120,000 NGVs on U.S. roads today and more than 10 million worldwide.
n There are more than 1,100 NGV fueling stations in the U.S.
n Natural gas costs, on average, one-third less than conventional gasoline at the pump.
n More than 50 different manufacturers produce 150 models of light, medium and heavy-duty vehicles and engines.
n About 22 percent of all new transit bus orders are for natural gas.
n Natural gas is sold in GGEs or gasoline gallon equivalents. A GGE has the same energy content (124,800 BTUs) as a gallon of gasoline.
SOURCE: ngvamerica.org