Review of the 6th Asia-Pacific Natural Gas Vehicle Associat

发布日期:2016/05/16  来源:中国气协  本站有 人浏览

CIGIA, China Vehicle Technology Research Center and Asia-Pacific Natural Gas Vehicle Association jointly organized the 6th Asia-Pacific Natural Gas Vehicle Association International Conference & Exhibition (ANGVA 2015 for short) in Chengdu on November 4-6. The 7th China International Natural Gas Vehicle, Engine, Gas Filling Station Technology, Equipment and Application Exhibition and the 17th China International Gas Technology, Equipment and Application Exhibition were also held during the corresponding period.
The theme of ANGVA 2015 conference is “NGVs –Choice of Clean Transportation”, and those social close attentions in the energy and transportation fields are focused to conform to the energy transformation direction for quickening development of clean energy. More than 40 leaders of related government authorities, industry experts and executives of companies in the international and domestic natural gas vehicle fields were invited to made speeches in their professional fields. More than 400 representatives from vehicle companies, part companies, research institutions and logistics companies and so on attended this conference. Those attending guests and representatives carried out broad communications and further discussions in view of those industry focusing issues such as current situations, development chances and challenges of the Asia-Pacific natural gas vehicle market, current situations and trends of policies, technology development trends, standard trends and construction of gas filling station infrastructure.
1 Development Chances and Challenge for the NGV Market
1.1 Current utilization situations of China road operating NGV
Mr. YAO Mingde (the honorary president and gas vehicle promotion application expert group leader of China Road Transportation Association) presented the speech of “Current Utilization Situations of China Road Operating NGV”, in which he disclosed that there were more than 4,000,000 NGVs in China as of the end of 2014 and NGV share is in the top position all over the world. There are 1,056,000 operating NGVs in total in China, which ranks in the top position all over the world and accounts for 6.11% of operating vehicles; and the growth quantity is 1.58 times of that in 2010. CNG, LNG and natural gas/oil vehicles (primarily taxi cars) account for about 36%, 10% and 54%, respectively. The top 10 provinces or autonomous regions in NGV volume market are: Inner Mongolia, Shandong, Sichuan, Xingjiang, Jiangsu, Hebei, Anhui, Guangdong, Hubei and Shaanxi. As of the end of 2014: there were 184,000 natural gas buses, which account for 34.8% of total buses and 17.4% of operating NGVs and which grow by 162.8% than that in 2010. There were up to 678,000 natural gas taxi cars, which account for 49.5% of total taxi cars and 64.2% of operating NGVs and which grow by 1.26 times than that in 2010. There were up to 49,000 natural gas highway passenger vehicles, which account for 4.81% of total highway passenger vehicles and 5.8% of operating NGVs and which grow by 1.75 times than that in 2010. There were up to 145,000 natural gas highway vehicles (trucks), which account for 1.0% of total highway freight vehicles and 13.7% of operating NGVs and which grow by 3.72 time than that in 2010. As of the end of 2014, there were up to 6955 gas filling stations (including the 1379 additional gas filling stations) in China, and the year-on-year growth rate was 24.7%; and there were more than 2400 LNG filling stations, whose share is 34.5%.
Mr. YAO Mingde said that natural gas price and national polices were currently the primary factors among the 5 major factors influencing the road transportation promotion application of NGVs. Although the policy direction is clear for China to encourage supporting development and application of NGVs, the intensity of encouragement policies and measures is to be further strengthened. Fully freedom and market adjustment of vehicle gas prices shall be a foregone conclusion.
Mr. YAO Mingde predicted that CNG prices would be free before or after the end of 2016. The proportion of vehicle gas price and diesel oil price (calculation according to proportion of price of 1m3 NG and that of 1 liter gasoline) would be among about 0.6-0.65, and may not be more than 0.65 in most regions of China.
1.2 Focusing the concerned points of China NGVs
Mr. LI Yongchang (a specially-appointed expert of China Vehicle Engineering Society) said in this speech of “Focusing the Concerned Points of China NGVs” that the estimated natural gas consumption for vehicles in 2014 was more than 32,000,000,000 cubic meters (including above 13,000,000,000 cubic meters for taxi cars and non-formal taxi cars), which ranks in the top position; the estimated natural gas consumption for LNG heavy trucks was about 7,500,000,000 cubic meters, which ranks in the second position; and the estimated natural gas consumption for buses was above 5,000,000,000 cubic meters, which ranks in the third position. Thus, the natural gas consumption for vehicles accounts for 18% of the total natural gas consumption of 182,000,000,000 cubic meters in China, which only follows the industry gas consumption and gas consumption for residents. The natural gas consumption for vehicles will be expected to grow continually during the “13th Five Year Plan” period and rank in the top position. It may be predicted that the volume market will have been up to about 680,000 buses in 2020 according to the development rate of buses in recent 5 years; then there will have been about 410,000 natural gas buses (including 50,000 gas-electric hybrid vehicles) and the corresponding natural gas consumption will have been up to 11,780,000,000 cubic meters, which will have been about 3.93% of the national natural gas consumption of 300,000,000,000 cubic meters in 2020. It is expected that the gas application rate for buses will have accounted for 60% in 2020. It is predicted that the volume market will have been 300,000 China LNG heavy trucks in 2020, and the gas consumption will have been up to 187,500,000,000,000 cubic meters in China.
1.3 Natural gas macroscopic market
Ms. CHEN Yunying (a senior gas industry chain analyst of ICIS (China) Energy Department) thought in her speech of “Analysis of Natural Gas Macroscopic Market” that China natural gas industry would involved gradually from the primary mode of the government control to that of marketization. 50-60% of upstream gas sources will have been controlled by diversified owners and downstream gas sources will have been fully marketized in 2020.
 
2 Current Situations and Trends of NGV Policies
2.1 Trends of NGV exhaust emission policies
Ms. NI Hong (the director of the new vehicle declaration office of the motor vehicles emission monitoring center of Ministry of Environmental Protection) said in her speech of “Trends of Exhaust Emission Policies for NGVs” that National-V standard for gasoline oil for vehicles in east regions, and National-IV standard for general diesel oil would be issued in 2016; National-VI standards for gasoline and diesel oil for vehicles will be issued in 2019 or 2020; National-V standard for general diesel oil would be issued in 2018; National-V standards for gasoline and diesel oil for vehicles all over China would be issued in 2017; National-VI standards for gasoline and diesel oil for vehicles would be issued in 2019 or 2020; National-IV standard for general diesel oil would be issued in 2017; National-V standard for general diesel oil would be issued in 2018; and National-VI standard for fuel oil and National-VI standard  for vehicle would be issued at the same time.
2.2 Thought of management of NGV subsidies and gas economy
Mr. TIAN Jingjing from Highway Science Research Institute of Ministry of Transport introduced the standards for special fund subsidies for transportation energy saving and emission reduction: as for those projects whose energy saving and emission reduction amount may be quantized, the rewards shall be no less than RMB 600 Yuan per standard coal or RMB 2000 Yuan per standard oil (converted from the replaced fuels) for application of alternative fuels; on the other hand, as for those projects whose energy saving and emission reduction amount may difficultly quantized, the subsidy proportion shall be no more than 20% of the equipment purchase expenses or project construction & installation expenses in principle; and the subsidy quota for a single project shall be no more than RMB 10,000,000 Yuan in principle. The fund scales are as follows: RMB 2,500,000,000 Yuan in 2011; RMB 5,000,000,000 Yuan in 2012; RMB 750,000,000 Yuan in 2013 and 2014; and RMB 1,000,000,000 Yuan in 2015.
The policies of subsidies for application of NGVs in the special funds: declaration project conditions conform to the support fields and declaration projects belong to natural gas operating vehicle purchase projects; natural gas bus and taxi cars purchase projects for Class Ⅲ cities (10 comprehensive finance demonstration cities, 26 low-carbon transportation system construction pilot cities and 32 cities for creation of urban buses; total: 55 cities); yearly alternative fuel oil amount being no less than 375toe; being ready for complete project approval implementation procedures (road transportation certificates); the project duration: January 1, 2014 to December 31, 2014; no intellectual property rights dispute; gaining no fund subsidy before; no any energy saving and emission reduction fund support from the central finance.
Mr. TIAN Jingjing said: the special funds supported 55 energy saving and emission reduction projects in total in 2014, whose total amount is up to RMB 627,590,000 Yuan. The special funds supported 57 energy saving and emission reduction projects in total in 2015, whose total amount is up to RMB 996,800,000 Yuan. There are 29 and 31 natural gas vehicle and ship projects in 2014 and 2015, whose corresponding proportions are 37.54% and 19.98%, respectively.
2.3 China LNG industry development and policies study
According to information, there are about 4000 CNG filling stations and 1,380,000 CNG vehicles (including about 80000 buses and 1,300,000 taxi cars) in China. There are about 2200 LNG filling stations (completion of construction) and 2000 LNG filling stations (under design or construction). There are about 130,000 LNG heavy trucks, 40000 LNG buses and long-distance coaches. The development rate of LNG filling stations currently exceeds the estimated for construction of about 2500 LNG filling stations by the end of 2015. LNG vessels are also being under booming development, and there are currently about 9 LNG filling pontoons, 20 LNG freight vessels, 80 LNG shore-based filling stations under construction, 10 LNG pontoons under construction and 3 moving vessels. However, Mr. GUO Zonghua (the president of Shaanxi Gas Design Institute) pointed out in his speech of “China LNG Industry Development and Policies Study” that LNG development was being in the difficult position:
1) The entire industry was in the difficult position; the terminal market was not smooth; the upstream and midstream oversupply and the entire industry shall be very difficult;
2) LNG vehicle or vessel prices were relatively high; and the price a LNG heavy truck is higher by about RMB 60,000-80,000 Yuan than that of a diesel vehicle while they are of equivalent power. Even though subsidies for one new LNG power vessel are RMB 600,000-1,000,000 Yuan, there shall be no advantage for LNG price with reference to the fuel oil price so that ship-owners may generally be of no enthusiasm; in addition, the tolerance capacity of vehicle owners (or ship-owners) is weak;
3) The technology causes and no ideal energy saving effect: according to the calorific value calculation results in theory, the calorific value of 1 liter diesel oil is equivalent to that of 1.1m3 natural gas; on the other hand, the calorific value of 1.3m3 natural gas may be equivalent to that of 1 liter diesel oil in actual; what’s more, the calorific value of 1.4m3 natural gas may be equivalent to that of 1 liter diesel oil for some vehicles;
4) The quality causes and relatively high failure rate and maintenance costs;
5) Imperfect gas filling network and only a few LNG stations may only be suitable for point- point transportation; and there are only a few LNG stations in inter-provincial highways;
6) Tedious construction procedures and difficult selection of locations: there are too many procedures for construction of one LNG station and the land acquisition is difficult; the location of a shore-based filling wharf is difficultly selected; and the construction is difficult to meet the flood control requirements.
Finally, Mr. GUO Zonghua put forward some suggestions for development of LNG industry:
1) The government shall be required to change ideas and realize the natural gas industry supplying energy for the engine of the national economy and green and cheap energy favoring the entire development of the national economy.
2) The government is expected to issue corresponding support polices:
(1) The oil and gas price linkage shall be performed; and the rate of prices of oil and gas prefers to 1:0.65 (0.7) according to calorific value calculation results.
(2) Lowering the gas source price and checking the exploitation and pipeline transportation costs; and the prices of raw gases for LNG plants shall be lowered again. If the prices of raw gases for LNG plants are not actually lowered, taxes may be lowered or even subsidies may be taken; the preliminary scheme of oil and gas reform is well intentioned and such reform needs a lot of hard work from the system aspect; and there is a long way to go. Currently, the goal shall be to save companies and the industry. Lowering price and the great reform are not contradictory.
(3) Performance of reduction or exemption of tax: LNG wharf receiving stations and LNG plants, transportation tank vehicles (tankers), distribution stations and filling stations.
(4) The difference between the prices of a LNG heavy truck (vessel) and a diesel oil vehicle (vessel) of the same power shall be balanced with subsidies and the purchase tax shall be reduced.
(5) The highway charges for LNG heavy trucks shall be reduced.
(6) The approval procedures shall be lowered and land under limiting price shall be supplied according to infrastructure conditions.
(7) Perfection of the gas filling network: integrated planning shall be carried out to the interprovincial gas filling network to perfect the gas filling network.
3) Related companies shall be required to take great efforts to technology development and innovation. Proper funds shall be invested to organize companies to go in for technology innovation and improve the efficiency of LNG engines.
4) Suggestions for related workers in the LNG industry: the industry chain shall be concerted and the rational profit space shall be maintained. No price alliance shall be established. The industry shall be disciplined and take unified actions on the autonomous rights; and the entire industry chain shall be cling together.
 
3 Development Trends of NGV Technologies
3.1 New development of high pressure gas storage and transportation equipment
Currently, most gas filling stations and long tube trailers are traditional equipment, and their structures are old and the performances are relatively lagging. Long tube trailers are seamless steel gas cylinders for storage of gases (20MPa); the dead weight is large; the filling capacity is small and the efficiency is low. Enric has successively developed 35MPa and 45MPa large-capacity seamless gas cylinders and 25MPa lightweight wrapping gas cylinders in recent years to lead updating of the entire industry. On the other hand, due to restriction of China standard GB 50156-2012 “Code for Design and Construction of Filling Station”, and application and promotion of 25Mpa lightweight wrapping gas cylinder vehicles were influenced to CNG filling stations. Mr. AN Xinshan (the sales technology director of Shijiazhuang Enric Gas Machinery Co., Ltd. (one CIMC ENRIC member)) appealed in his speech of “New Development of High Pressure Gas Storage and Transportation Equipment” to national experts to track the technology development of large-capacity seamless gas cylinders and timely revise China standard GB 50156-2012  “Code for Design and Construction of Filling Station” to be in line with international standards and promote technology updating of CNG storage and transportation and gas filling station equipment; thus, the advanced technologies may be converted into productivity as soon as possible and the goal of China natural gas equipment being energy saving, environmental protection, economical and high efficiency may be realized.
3.2 Current situations and future trends of natural gas engine technologies
Mr. CHEN Zhiwu (a manager of the domestic natural gas project of Commins (China) Investment Co., Ltd.) pointed out in his speech of “Current Situations and Future Trends of Natural Gas Engine Technologies” that the time for application of Euro-VI standard in China was not certain. Currently, the centralized open Euro-V standard was gradually put into application to Euro-VI products. The main technology route for the natural gas engines was the thinning combustion. We shall perform design in view of users and taking interests of users into account. Users pay close attention to the whole life cycle of natural gas vehicles. As for Euro-VI standard (primarily thinning combustion), further tests will be required to reliability and many technical parameters. After only completion of enough road tests for natural gas vehicle engines, such vehicle engines may be supplied to users and responsibilities shall be undertaken for users. We presented strict requirements to the exhaust emission control accuracy of China natural gas equipment. In the future, the possible technologies for natural gas vehicle engines may improvement of piston efficiency, adding a piston chamber and several-point injection.
3.3 Current situations, achievements and challenge of application of high level vehicle fuels
International Energy Agency whose headquarter is located in France Paris and which was established by Organization for Economic Cooperation and Development in November 1974 to deal with the energy crisis is an inter-government organization. International Energy Agency established one energy science development network covering more than 6000 projects. Mr. Nils-Olof Nylund (the vice chairman of the advanced vehicle fuel organization of International Energy Agency) said in his speech of “Current Situations, Achievements and Challenge of Application of High Level Vehicle Fuels” that the PM2.5 emission is close to zero for Euro-VI standard. “Oil to Gas” for vehicles is not a correct thought. Transformation of engines shall not be the unique way but the demands of customers shall be taken into account. A single fuel may not dominate all markets. There may also be biomass fuel vehicles in the future. 80% of electric power generation comes from coal in China and such case shall be worse. Emissions of hydrogen fuel vehicles are zero, which are potential. Natural gas vehicles are also very simple to easily conform to requirements of Euro-VI standard. Biomass fuels are multifunctional fuels, and methane is an alternative fuel, which is very potential. Euro-VI standard may be used to evaluate the energy saving and environmental protection effects of vehicle fuels due to there being no Nox emission in Euro-VI standard tests.
3.4 Comparison of environmental protection and economy of natural gas vehicles and new energy vehicles
Currently, overseas and domestic research on alternative fuel energy vehicles primarily focuses NGV and electric vehicles, and their emission situations are compared with those of traditional gasoline/diesel vehicles. Power and natural gas are two kinds of the most prospective fuels for motor vehicles to replace gasoline in China. Tsinghua University scholars adopted the adjusted Greet Model to perform analysis and comparison of emission situations (GHG, PM2.5, PM10, NOx, SO2) of electric vehicles, natural gas vehicle and gasoline vehicles in various provinces and cities in China and the results indicate the emission reduction effect of natural gas vehicles is better and GHG, PM2.5, PM10, NOx and SO2 emissions are greatly reduced; on the other hand, PM2.5, PM10, NOx and SO2 emissions of electric vehicles are lowered more than those of general gasoline vehicles. Canadian researchers carried out the whole life cycle analysis (LCA) to diesel and CNG refuse collecting vehicles and comparison of their energy consumptions and pollutant emission situations, and results show that there is no significant energy consumption advantage for CNG refuse collecting vehicles with reference to the diesel ones; however, GHG and standard pollutant emissions may be greatly reduced. The whole life cycle cost-profits of CNG vehicles are better due to reduction of CO2 emission.
Mr. ZHU Hongqing (an associate professor of University of Science and Technology Beijing) pointed out in his speech of “Comparison of Environmental Protection and Economy Effects of Natural Gas and New Energy Vehicles” that there was basically no technical potential for improvement of energy efficiency of diesel engines while the rapid development and continuous improvement of the fuel oil economy standard was carried out. On the other hand, the potential for improvement of energy efficiency of natural gas engines is relatively large. Currently, China and Europe have the most advanced natural gas engine technologies together, and the technology updating may be promoted due to the technology competition in the industry.
Mr. ZHU Hongqing presented his predictions to private cars, taxi cars and heavy trucks using various fuels:
1) Private cars: while there is no preferential natural gas purchase policy, there are obstacles for purchasing private natural gas vehicles in the future and the development of natural gas vehicles will be greatly restricted. Under the current oil and gas price economy conditions, there is no significant economy advantage for natural gas motor vehicles in comparison with blade electric vehicles. In view of the environmental protection effect, natural gas motor vehicles take relatively great emission advantages in comparison with other vehicles. Under restriction of the policy, economy and environmental protection factors, the future market must be in the multiple development structure, and natural gas motor vehicles will still have a significant place (based on the deduction conclusions from the late optimization model).
2) Taxi cars: in view of fuel consumption, natural gas taxi cars are more and more popular in most cities in China, and more users are one primary power force for construction of local gas filling stations. The natural gas sources do not restrict taxi cars and natural gas taxi cars are promoted in more and more cities for coping with air pollution, and this is one primary application method for the original natural gas passenger vehicles. Because construction of gas filling stations is very difficult in Beijing, Shanghai, Guangzhou and other developed cities, the best chance is currently lost for development of NGVs. Natural gas passenger vehicles will primarily developed in those regions where there are preferential policies.
3) Heavy trucks: the power to drive rapid development of NGV is LNG vehicles and the market scale is huge. Currently, National-IV emission standard is fully valid for heavy trucks in China, and heavy truck users shall undertake relatively large costs. If the gas price is especially preferential in economy, natural gas heavy trucks will be of great market potential. If there is no significant economic benefit for natural gas heavy trucks for a short period, the desire for users to purchase natural gas heavy trucks may be lowered. The market of heavy trucks is basically not influenced by new energy vehicles and there is no technical solution for new energy to the market of heavy trucks. Diesel vehicles will still dominate the market of heavy trucks in the future and the market pattern for natural gas heavy trucks will change along with changing gas price.
3.5 General situations and planning of development of heavy trucks for Shaanxi Automobile Group
Shaanxi Automobile Group has been being devoted to research and development of natural gas vehicles since 1999; and Shaanxi Automobile Group successively undertook the CNG and LNG vehicle projects related to the national 863 plan and gained more than 40 national patents based on its insistence and unremitting efforts for years. Its production and marketing volume of natural gas heavy trucks has been in the leading position in the industry for years; and the market volume was 15,000 natural gas heavy trucks in 2014, whose market share is above 42%. Currently, 2 national standards for LNG loading vehicles is under preparation and further research and development of are under progress in Shaanxi Automobile Group. Mr. LIU Xibin (the Deputy General Manager of Shaanxi Heavy Vehicle Co., Ltd.) put forward 6 suggestions in his speech of “General Situations and Planning of Development of Heavy Trucks for Shaanxi Automobile Group”, which are listed as follows:
1) The government is suggested to present some certain supporting policies to natural gas heavy trucks with reference to those to the national new energy vehicle products, and the vehicle purchase tax may be exempted and the green supporting channel for approval registration may be set to those users purchasing natural gas vehicles; and the purchase subsidies of RMB 20,000-50,000 Yuan may be provided per natural gas vehicle.
2) The natural gas pricing mechanism shall be perfected to promote the natural gas price competition force. The price rate of oil and gas shall be among 0.6-0.65 to ensure some certain economy advantage for natural gas while the product oil price is lowered greatly; and the calorific value is advised to act as the measuring unit for selling vehicle natural gas to bring benefits for most customers.
3) Elimination of heavy-polluting vehicles shall be quickened in various cities, and it is suggested that natural gas heavy trucks are preferentially used as the municipal environmental sanitation and refuse soil transportation vehicles and so on.
4) As for rapid and charging level highways, a natural gas vehicle shall be preferential by 1 ton in the weight and charge standard with reference to a diesel vehicle (a natural gas vehicle includes an additional gas cylinder whose weight is about 1 ton); and corresponding bridge and road tolls may be reduced by 50%.
5) The competent authorities are suggested to lead quickening the approval rate of planning and construction of gas filling stations and encourage more energy companies and social resources to perform construction of gas filling stations.
6) It is suggested that the trade tax (1% of estimated price) may be exempted in view of trading used natural gas vehicles, and the subsidies for scrapping a natural gas heavy truck may be increased from RMB 18,000 Yuan to RMB 30,000 Yuan for promotion of the market sales growth.
 
4 Trends of the NGV standards
4.1 Current situations of establishment of China NGV standard system
Currently, gas vehicles have been put into application in provinces, autonomous regions and municipalities directly under the central government in China, and it was preliminarily estimated that there were 2,900,000 gas vehicles (including about 130,000 buses, 780,000 taxi cars, 1,960,000 private cars and 30,000 other vehicles) in China. The motor vehicle manufacturers paid more and more attentions to development and production of gas vehicles. China gas vehicle product models and series are complete. Currently, there are about 400 gas vehicle models (including chassis) from above 60 companies in total in the national new motor vehicle product bulletin, and products cover passenger vehicles, cars, freight vehicles, municipal special vehicles and other diversified market vehicles, in which there are 254 dual-fuel vehicles.
Mr. WANG Xueping (the assistant director of the vehicle standardization institute of China Automotive Technology & Research Center (CATARC)) said in his speech of “Current Situations of Establishment of China NGV Standard System” that the technical standards and law and regulation system for development of gas vehicles in China was being perfected. Currently, a relative complete gas vehicle standard system was established in China, and more than 50 national standards and industry standards were implemented, covering the entire vehicles, engines, special components, vehicle gas cylinders, fuel quality (gas quality), gas filling stations, and gas filling machines and so on. The gas vehicle development processes and development of related standards are closely connected. Since the gas vehicle standardization work group and the gas vehicle branch of National Vehicle Standardization Technology Committee were found in 1996 and 1997, respectively, relative great development has been made in preparation of gas vehicle and related standards, and a series of national and industry standards were prepared. The gas vehicle standard system may be applicable to all motor vehicles using natural gas, LPG and dimethyl ether fuel and the gas vehicle standard system includes 8 fields as follows: “base standards”, “entire vehicle standards”, “engine standards”, “special component standards”, “storage gas cylinders and accessories”, “gas quality standards”, “gas filling machine standards”, and “gas filling station standards”.
4.2 ISO and UNECE LNG vehicle standards and codes
Mr. Carl A. Wagner from TUV Saarland Automobile Alternative Fuel Center said in his speech of “ISO and UNECE LNG Vehicle Standards and Codes” that UNECE 2011 laws included CNG and LNG rules at the same time. In fact, ISO and UNECE LNG vehicle standards and codes are similar. In accordance with EU laws, UNECE laws include some LNG and CNG standards and codes. If any China manufacturer wants to sell its products to EU countries, products must conform to requirements of UNECE standards.
 
5 Construction of Gas Ffilling Stations
5.1 Development of LNG filling stations in China
The stagnant market environment result in serious slowdown of development growth of vehicle business, slow gas consumption growth or even lowering gas consumption in some areas; thus, the vehicle natural gas market faces great challenges. As of August 2015, there were more than 2200 LNG filling stations in China. Under the flagging entire economy environment situations, the growth rate of vehicle gas is lowered, and only more than 200 gas filling stations were built in 2015; thus, the construction rate of gas filling stations slows down.
Mr. JIANG Zhendong (the Deputy General Manager of ENN energy vehicle business department) presented the analysis of causes for slowing down construction of LNG filling stations in his speech of “Development of LNG Filling Stations in China”; and the causes are as follows: (1) High land price accounts for 60%-80% of the total investment to prolong the return period. (2) Strict supervision and tedious procedures (about 30 procedures), and frequent accidents lead to rigorous supervision. It was estimated there is no gas supply for above 300 gas filling stations due to locations or procedures and so on. (3) Low operation efficiency: the sales volume of LNG vehicles was lowered by 40% due to continual drops in oil price; and the mean gas filling rate for a gas filling station is less than 5 tons per day to manage the break even balance. (4) Sliding profits: the attitudes for the primary companies turn cautious from active so that development of market may be difficult and the industry chain profits may be compressed; and the business is not good.
Mr. JIANG Zhendong presented his predictions for future trends: the rapid growth may be still maintained LNG passenger vehicles in 2015-2017, which is primarily influenced by the government promotion; the growth of other vehicles will primarily slows down; and new growth may occur in some certain year due to the preferential pricing policy. Along with the continuous growth of China LNG vehicles, vehicle LNG will gradually become the first largest market in the LNG downstream industry. It was predicted that this market scale would have been up to 11,674,000 tons in 2020, which accounted for above 50% of LNG consumption that year. Construction of LNG filling stations in China grew very rapidly in 2011-2013 and then it gradually slowed down. It is predicted that the growth rate of construction of LNG filling stations would be maintained at about 10-15% after 2016 in China.
The national gas filling network is being formed through 2-year rapid expansion and the growth rate of construction of LNG filling stations is maintained to about 10-15%. It was predicted that the industry competition may become rational in next 3-5 years and the network layout may be perfected; and more attentions may be paid to improvement of the operating efficiency and profits, and then the industry integration period will come. Great development of LNG vehicles is still one effective method for solving the energy crisis and reduction of emissions. The future development of LNG filling stations and vehicles is still hopeful and there will be space.
5.2 Localization of gas storage equipment
SINOMA Science & Technology (Suzhou) Co., Ltd. is a high-tech company going in for production of various gas cylinders. There is a production line for stretching steel plates for vehicle CNG cylinders in the Chengdu plant, whose yearly production capacity is 250,000 vehicle CNG cylinders. This production line is the first production line in China to fill in the home gap. Currently, there are 3 types of forming processed for CNG cylinders all over the world: steel tube spinning process, billet thermal shock technology and steel plate stretching process. Mr. FENG Cunjiang (the Deputy General Manager of SINOMA Science & Technology (Suzhou) Co., Ltd.) presented the speech of “Localization of Gas Storage Equipment” and introduced the steel plate stretching process for gas cylinders. The steel plate stretching process is to stretch raw steel plates into the cup-shape products through 3 stretching and shaping procedures and the cup-shape products may become gas cylinders through the entire forming process (spinning and closing). Thus, the weight of a steel plate stretched gas cylinder may be lowered by 10-25% and the volume-weight ratio may be increased in comparison with those of a conventional gas cylinder. In addition, Mr. FENG Cunjiang said: steel plate stretched gas cylinders may completely prevent bottom gas leakage and the safety and internal and external surface quality of gas cylinder may be improved. The product diameter may be selected randomly to improve the product adaptability.