Thursday, January 19, 2012

Update of the Natural Gas National Interstate System

Bakken growth refuses to stop -- a Motley Fool blurb that is not worth reading. I assume a paid subscription to Motley Fool provides better content, but the Motley Fool articles I've seen are pretty worthless.

On the other hand, SeekingAlpha.com seldom disappoints. One of the themes on this blog regarding natural gas is that if it is to succeed, users and suppliers will evolve together to develop an economically feasible natural gas national interstate system.

I don't follow this national interstate system but my "myth" is that long-haul truckers now have a natural gas interstate system from California to Nevada/Utah and on to Wyoming. SeekingAlpha.com provides an update of the national system.
On January 12 Clean Energy (CLNE) announced more details of the planned "Natural Gas Highway". The company has identified 98 locations and plans to have 70 stations open by the end of 2012 in 33 states. Here is a map of the company's planned refueling locations: [map at link.]

The first phase of the plan will be completed by 2013 and will include 150 natural gas refueling stations. Phase 1 is targeting major highway hubs including: the San Diego-Los Angeles-Riverside-Las Vegas cluster and the Texas Triangle (Houston-San Antonio-Dallas/Ft. Worth); CLNE is also targeting high use long-haul routes like Los Angeles-Dallas; Houston-Chicago; Chicago-Atlanta; and a network of stations along major highways in the mid-west region (IL, IN, OH, MO, KY, TN, KS, OK, AL) to serve the heavy trucking traffic in the area.
It looks like my understanding of the system is not too far off.

For simplicity, it looks like I-10, I-20, and I-80 are the most likely interstates to be targeted for coast-to-coast refueling stations.

With diesel hitting new highs, and natural gas hitting new lows, it should be just a matter of time.  It will be interesting to watch this unfold as we pass through the tipping point.