Published 21st August, 2013
Analysts estimate that there will be 800,000 of the alternative energy vehicles in China by the end of the decade.
LNG buses ready for the road Image: Lianspam |
Sanford C Bernstein claims that, alongside the sharp increase in vehicles, the need for liquefied natural gas to power the vehicles will rocket from 1.8bn cubic metres in 2012 to 18bn by 2020.
One of the main drivers for the increase will be the government-backed interest free loans, according to Neil Beveridge, a Hong Kong-based analyst at the US firm.
The current payback period for conversion to LNG vehicles is 16 months, but may widen to 24 if wellhead gas prices rise again. Beveridge calculates that truck drivers switching to LNG could save 7,282 yuan ($1,190) per month, a significant benefit in a low-margin industry.