OMV predicts growth in LNG-fuelled road transport

Thursday, 13 February 2020
Free Read

Austrian integrated oil and gas company OMV predicts that LNG fuelling for road transport is set to increase rapidly in Europe, driving infrastructure investment in the continent.

The LNG-fuelled heavy-duty transport sector is set to be one of the main drivers for this growth with energy firm Shell forecasting that the number of vehicles in the segment will rise from 1,532 vehicles in 2016 to 280,000 by 2030.

“We believe that the demand for LNG on the road will grow… Less CO2 and particulate emissions, as well as less noise, add up to environmentally sound goods transport. This is why we should get on with expanding the requisite infrastructure and supply,” Rainer Steele, CEO of OMV, said.

Fuelling biogas development

In the longer term, OMV predicts an upsurge in commercial vehicles powered by compressed natural gas will compliment LNG infrastructure, creating a critical mass of gas powered vehicles and novel solutions such as liquefied biogas.

“Even better than reducing CO2 output, of course, is to drive CO2-neutral – this will be possible in the near future with bio-methane and hydrogen,” Steele commented.

Headquartered in Vienna, OMV is active in both the upstream and downstream sectors and employs over 20,000 staff worldwide.

OMV, Snam, TAG sign MoU

Furthering the company’s aim to develop CO2-netural solutions, OMV signed a memorandum of understanding with Italian gas utility Snam and gas distribution company TAG to prototype new liquefaction and LNG supply infrastructure in Austria.

“Gas is the most immediate solution for reducing pollution from fine dust and CO2 emissions from light and heavy transportation and also has great potential in maritime and rail transport. Additionally, thanks to biomethane and bio-LNG, it is gradually becoming renewable, paving the way for further decarbonisation of transport,” Marco Alverà, CEO of Snam, commented.

The three-way agreement covers plans to jointly investigate ‘potential opportunities in the field of sustainable LNG mobility’ in Austria. This includes construction of a small-scale LNG liquefaction plant, the framework for a later LNG supply agreement, and the development of a LNG market.

“Our cooperation with OMV and our associate TAG is aimed at boosting sustainable natural gas mobility in Austria, building on an already successful experience. Italy has the largest number of both CNG (over 1,300) and LNG (over 50) distributors in Europe and Snam is investing to further strengthen the network for both cars and trucks,” Alverà added. 

Related Video

Free Read