Reuters: Shale gas will struggle to impact transport: Wynn

Natural gas will struggle beyond niche applications in U.S. transport despite a widening discount to rival fuels, given a shortfall in distribution compared with gasoline, biofuels and electric vehicles.

Shale gas production has up-ended power generation, under-cutting the economics of older coal plants and new nuclear.

Compressed natural gas (CNG) has long been one of the cheapest U.S. road fuels including gasoline, diesel, ethanol, biodiesel and propane.

That edge has widened significantly since natural gas prices dropped in the wake of the shale gas boom.

The trouble is that its low energy density implies a shorter range, weight penalty and requires compression or liquefaction which adds significant upfront costs in bulky, pressurised fuel tanks.

Add a lack of refuelling infrastructure and the attraction of lower running costs fades.  MORE