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Caltex not sold on LNG network for transport

Caltex says there is no compelling business case to build a natural gas supply network for the transport industry

By Ruza Zivkusic-Aftasi | August 27, 2013

While commercial fuel distributors plan to build a natural gas supply network for the transport industry, Caltex Australia is yet to be convinced of the move.

Caltex spokesman Sam Collyer says there is no compelling business case for installing LNG refuelling stations in Australia due to conversion costs, warranty issues and pricing.

“The company view is that there is still some way to go for LNG as [a] transport option,” Collyer says.

“It is more likely that that kind of technology will be used to run remote power stations for remote communities and mines rather than as a transport fuel at this point.

“We remain committed to providing fuel that the customers need so if there is a huge amount of demand there for us to look at different fuel options and provide that then we’ll obviously respond to the market,” he adds.

“The conversion of trucks is going to be an issue for the operators as to whether they would actually want to invest in converting their vehicles. It’s quite an expensive exercise and there’s some warranty issues associated with converting it.”

Shell announced earlier this year it would install eight LNG refuelling ports at existing truck stops on the Hume Highway between Melbourne and Sydney.

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