In the eastern central China province of Henan, state-run Henan Ancai Hi-Tech will invest 30 million yuan (USD 4.9 m) to create a wholly owned natural gas company in response to the rapidly growing domestic market for natural gas vehicles. The scope of the new company’s mandate is intended to be “energy technology services, consulting services; natural gas processing and marketing; natural gas plus gas station construction and management; natural gas pipeline network construction and operational management; gas vehicle modification; natural gas logistics and transport”.

The rapid acceleration of natural gas vehicle numbers is largely a result of the implementation of new national ‘gas utilization policy’ implemented December 1, 2012. For the first time the policy included LNG powered vehicles within its scope and in particular proposed to encourage and support the automotive and marine gas filling facilities and equipment construction. The policy has accelerated the development of LNG vehicles.

The company’s feasibility analysis cited China Association of Automobile Manufacturers statistic: in 2008 there were only 50 of LNG buses and no LNG heavy trucks. By 2010 LNG buses reached 2830 and LNG heavy truck 2952; 2012 saw cumulative LNG vehicle sales reach 35,000, more than in the past four years combined.

In the past two years LNG heavy trucks and long-distance buses have shown explosive growth, expected by 2015 China will be more than 1.5 million natural gas vehicles. NGV Global understands from an in-China source that the number of NGV’s has already exceeded that figure.