Market Analysis of LNG Buses in 2012 Ⅲ

Part Five: Challenges and oppurtunity of LNG buses

a. Challenges analysis

1. Further construction of LNG gas recharging stations will promote application technology of LNG buses.

Shenzhen LNG gas recharging station was finished in 2006, and Fujian and Shanghai LNG stations adopt international technology which can collect and deal with BOG and make sure LNG craftmanship. Full capacity can avoid leaking and other accidents. Sub-cooler can save cooling energy, liquid pressure is good for energy-saving.

2. The distribution of natural gases and lack of gas supply pipe network

China natural gas are mainly in West and Central China, and use of natural gas are mainly in East China. And the transport of natural gas is one of the main challenges.

3. LNG buses will run in East China and large river along areas.

Transport of LNG is rather convenient for river, and use of LNG buses will be more convenient for river areas.

4. More LNG buses will be used on long-distance transport

LNG features big energy densitym, so it can be used for long-distance transport. In China, LNG buses with cylinder with 410 liter can run for 400km, and 700km on express highway.

b. Restrict factors

1. The lag of gas recharging stations will restrict development of LNG buses

Currently, construction of gas charging stations is lag in China, which will infect use of natural gas buses.

2. The uneven distribution and price difference will infect development of LNG bus

3. The comparatively high price of LNG buses

Bus operators have to pay 60,000-70,000 Yuan more to purchase LNG buses than traditional diesel buses. And the high price is due to the price of natural gas engine which adopts key components by Bosch, Denso and Woodward air feeder, ignition device.

4. The after-sales service for LNG buses are high

The costs of the maintenance of LNG buses are mainly the maintenance of engine gas system and bus-mounted gas cylinder.