LP:NJNG Hopes to Invest Millions in Natural Gas Vehicle Fueling Stations
New Jersey Natural Gas wants permission from the state to begin building the infrastructure in three counties for expanded use of compressed natural gas-fueled vehicles.
The company, based on Wyckoff Road in Wall Township, on Thursday filed with the state Board of Public Utilities seeking authority to invest up to $15 million to build from seven to 10 Compressed Natural Gas (CNG) refueling stations in Monmouth, Ocean and Morris counties.
NJNG wants to develop the market for natural gas vehicles by increasing the availability of such stations. The state currently has only three refueling stations.
Natural gas vehicles produce up to 30 percent less greenhouse gas emissions than diesel, and costs roughly the equivalent of $1.60 per gallon of regular gas, and the investment would add no more than a fraction of a percent to its customers’ bills during the 2011-12 heating season, according to a company release.
“Increasing the use of natural gas vehicles to meet the state’s transportation needs provides a cost effective and environmentally cleaner choice of fuel,” the release says.
The stations would be built on either private or municipal properties, where the host companies or entities would both use the stations and open them to public use, the release says.
“By building the infrastructure to refuel natural gas vehicles, New Jersey Natural Gas can help stimulate the market for alternative fuel vehicles as well as economic development in our state,” said Laurence Downes, company CEO.
New Jersey Natural Gas currently has only one fully CNG vehicle in its fleet, but hopes to have more than a dozen by the end of the year, company spokesman Tom Massaro said.
“Right now we are transitioning our fleet over to natural gas vehicles,” Massaro said. “We’re reinvesting in and rehabilitating the compressed natural gas stations that are at our Wall and Lakewood facilities.”
The goal, according to Massaro, is to eventually convert their entire fleet into CNG vehicles.
“If the technology allows and the vehicles are out there, we’d love to have that,” Massaro said.
With the rising cost of petroleum and the new availability of natural gas, the company has decided it’s the right time to make the investment, Massaro said.
“The supply picture for natural gas is much different now than it was just a few years back,” Massaro said. “The price level that we’ve seen today has been a big change for the natural gas industry; having an access to the supply at reasonable prices. That has really helped.”
The only thing standing in their way, however, is the lack of fueling stations in New Jersey, Massaro said.
“One thing that’s remained constant, that has been kind of the barrier to the implementation of CNG has been this lack of access to the refueling infrastructure,” Massaro said. “We need to invest into this infrastructure in order to pull more vehicles into the marketplace, both from a manufacturing perspective and from a marketing perspective.”
If given approval, NJNG would begin constructing the fueling stations immediately, and no later than December 2012, which the company says would help bolster the economy.
“Building new refueling infrastructure provides construction work along with the growth opportunities for equipment manufacturers, and increased demand for natural gas vehicles necessitates increased vehicle production and sale. All of which provides direct and indirect economic benefits for local businesses, stores and suppliers,” the release says.