Energy Conversion and Financial Overview slide image

Energy Conversion and Financial Overview

LNG Refuelling Stations Market Potential in North America Abundant natural gas resources Nearly 90% of the natural gas used in the U.S. is produced in the U.S. and U.S. dry gas production (trillion cubic feet per year) 30 ENN 新奥 Natural gas price is very competitive Natural gas price is cheaper and relatively more stable than oil price Annual average price in real 2013 USD per million BTU (MMBtu) nearly all the remaining History Projections 1% supplies come by pipeline from Canada U.S. has around 2,692tcf of natural gas supply, according to current 2210 25 Net imports 25 11% Shale gas 45% 14% 20 15 20% 9% Non-associated onshore 8% Non-associated offshore 8% 15 consumption rate, domestic 28% Tight gas 22% 5 10 natural gas resources 2% 8% 9% ensure future supply of 0 Coalbed methane Associated with oil Alaska 7% 1% 7% 5 more than 100 years 1990 2000 2009 2020 2035 Brent crude oil Asia gas Europe gas United States gas 2000 2010 2020 2030 Heavy Duty Truck Market Has Huge Potential 2040 NGV penetration rate of annual new orders: Class 3-10,001 to 14,000 Walk-in Box Truck City Delivery Heavy Duty Pickup Class 4-14,001 to 16,000 Currently, Class 8 Heavy Duty Trucks consume 28 billion gallon of fuel NGV addressable markets Transit buses Turnover/yr 5,000 NGV purchases 1,500-2,000 NGV % penetration 30-40 Refuse trucks 6,000-8,000 3,500-4,800 50-60 Large Walk-in Box Truck City Delivery Class 5-16,001 to 19,500 Bucket Truck Large Walk-in City Delivery Class 6-19,501 to 26,000 Deverage Truck Bingle do Class 7 -26,001 to 33,000 Refuse Furniture Class 8-33,001 & Over Coaches, shuttles, specialty Class Class 3 % of fuel use Total (ex-class 8) 4% Class 8 trucking market Class 4 2% Ochool Dus Rack Truck Class 5 1% Class 6 12% Cy Transit Bus Truck Tractor Class 7 3% Class 8 78% 3,000-4,000 600-750 15-25 14,000-17,000 250,000 5,600-7,550 33-54 2,000 0.8 Cement Truck Truck Tractor Dump Truck Sleeper Natural gas-powered vehicles penetration in Class 8 trucking market is much lower than other fleet types due to high conversion cost, inadequate infrastructure, when these issues solved, penetration should ramp up There are approx. 3 million heavy duty trucks on the road, it is expected that 7% of the fleet will be LNG-powered by 2020, LNG consumption will be approx. 2 billion DGE Sources: IHS 2014 Q4 report, EIA, DOT and broker reports 8
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