HN: Businesses switching to compressed natural gas

Prague, Aug 8 (CTK) - Czech offices are joining firms and switching to compressed natural gas (CNG) for their cars as the country is discovering this new alternative fuel, daily Hospodarske noviny (HN) writes yesterday.

For the time being, however, only 4000 vehicles, including lorries and buses, now use CNG and the number of refuelling stations is also very low - about 40 public ones and some 50 within closed firm complexes.

Even though the Czech Gas Union expects the yearly growth in CNG sales to be higher than the 20 to 25 percent until now, it is still little compared with the competition, liquefied petroleum gas (LPG), for instance, HN writes.

However, the percentage increase in CNG sales is much higher than in LPG sales, which is also due to the massive support by large gas firms that cooperate in CNG promotion, HN writes referring to Ludek Schneider, owner of HTS Zabreh, the biggest network of services rebuilding cars to LPG.

The prices of LPG and CNG are both about half the price of petrol, but it is cheaper and easier to rebuild garages for the parking of CNG-fuelled cars under the construction law than of LPG-fuelled cars.

Diesel oil consumption has been decreasing in the Czech Republic by 5 percent year-on-year and of petroleum by even 10 percent though they still dominate the market, HN writes referring to the figures of the Czech Association of Petroleum Industry and Trade (CAPPO) data.

CAPPO's expert Vaclav Loula told HN that he expects the share of CNG in Czech fuel consumption to grow from less than 1 percent now to 7 percent by 2020 and to 13 percent by 2030, judging by the development in neighbouring countries.

Gas experts even say some 400,000 vehicles in the country will be CNG-fuelled by 2020, which is not unfeasible with regard for the generous state support in the from of low taxation.

HN writes that CNG will remain the cheapest fuel on the market for some time and it recalls that European states have agreed to raise excise tax levied on CNG only slowly and to bring it to the level of other fuels by 2020.

Another advantage of CNG compared with LPG is that it is not explosive, manipulation of it is easier, and more and more of it is being offered on the market thanks to the new technology of mining shale gas, HN writes.

It also reminds of that there is a much greater competition in the gas industry and that there exists nothing like the oil cartel OPEC that would regulate production and prices.

The times when the Russian Gazprom was influencing the gas market of a big part of Europe is over, HN writes.

At the same time the network of gas pipelines taking the raw material inland is getting thicker.

"The Czech Republic, too, should in the course of time strengthen its connection to the north-southern way linked to the terminal being built in Polish Swinoujscie," HN quotes Industry and Trade Minister Martin Kuba as saying.

Kuba counts with a much greater role of CNG as well as LPG in Czech transport in the future in his draft energy concept, HN writes.