New ANGA Study Points to Opportunities for LNG Use in Rail and Marine

America’s Natural Gas Alliance (ANGA) has released a study performed by Gladstein, Neandross & Associates (GNA) that identifies locations across three key areas—the Great Lakes, the Gulf of Mexico, and the Mississippi River and its tributaries—with the best potential for demand growth to support LNG infrastructure investment. The study finds that with continued coordination between end-users, suppliers, and stakeholders, potential U.S. LNG demand from high horsepower users—in just these three regions—could reach one billion gallons annually by 2029, approximately seven times all current domestic LNG use for transportation. Much like power generation, manufacturing, and on-road transportation, use of natural gas for marine and rail is being driven by abundant supplies, low cost, and a cleaner profile. Already, LNG-powered marine vessels are underway or under construction at many of our nation’s shipyards. There are currently 19 confirmed orders for LNG or LNG- conversion-ready vessels in North America, and GNA estimates that within 15 years 363 U.S.- flagged vessels could generate 380 million gallons of LNG demand annually. Not far behind LNG adoption in marine applications, major railroads across the country are in various stages of testing LNG as a locomotive fuel, with the study estimating that commercial locomotive adoption is likely to begin later this decade. Class I railroads in North America consume approximately four billion gallons of diesel each year. If the railroads converted even one third of their operations to natural gas, they would be able to save approximately $2.6 million each day. To view the full report, click here.