940.784.3112

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Railroad Commission of Texas

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ENGINE CONVERSION

Most engines can be converted to run on CNG.  When properly converted, the vehicle will maintain or exceed its current performance with greatly reduced pollution and lower maintenance costs.  Most engines can be converted to run either 100% on CNG, or dual-fuel where the vehicle can run on both CNG and another fuel.  Dual-fuel vehicles are used when access to CNG terminals cannot always be assured, such as cross country trips, etc.  While still cleaner and more economical, some efficiencies are lost due to the added weight and maintenance tied to the carbon based fuels.

 

Fuel Cost Comparisons:

                                           CNG     vs     Gasoline     vs     Diesel
Per Gallon Equiv. (PGE)    $2.20                $3.60                $4.00

 

- Based upon $6.00/mcf Natural Gas Cost.

- PGE = the volume of Natural Gas needed to create the same amount of BTUs of energy as a gallon of Gasoline or Diesel.

- Includes the cost of Natural Gas plus the cost of terminal equipment, construction, and financing costs that will vary based upon annual volume of fuel used, cost of financing, availability of incentives, etc.  Example:  500,000 gallons/year usage, average incentives, with a 10 year contract would add $1.00 - $1.50 to the PGE cost of CNG.

Notice the benefit of CNG when there is commodity inflation.  A 5% inflation rate would increase the PGE cost of Gasoline by $0.18, Diesel by $0.20, and CNG by only $0.04.  This is due to small portion of the CNG cost that is related to the variable cost of Natural Gas.  Most of the cost is fixed.

 

 

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