Shaanxi Auto, CNOOC join forces on LNG heavy-duty trucks
2010-8-20
Chinese automaker Shaanxi Auto is cooperating with the CNOOC Gas and Power Group on a LNG heavy-duty truck business, according to a report by 21st Century Business Herald. Shaanxi Auto is responsible for developing LNG heavy-duty trucks for long-distance transportation companies, while CNOOC Gas and Power is expected to ensure LNG supply for the trucks by building LNG stations on their running routes.
 
Both the two companies refused to comment on the cooperation, saying only that the LNG vehicle technologies are mature now and they hope to gain the first-mover advantage in the LNG vehicle market.
 
Shaanxi Auto is applying to the central government to include LNG heavy-duty trucks into the new-energy vehicle subsidize program, Fu Guojian, a Shanghai dealer of Shaanxi Auto said, but refused to give the specific amount of the subsidy requested.
 
Huang Xianwen, director of a natural gas vehicle website in China, was confident about the development of the natural gas vehicle market. He predicted that China's natural gas vehicles in use would account for 30 percent of the total vehicles in China by 2020.
 
In contrast, Sun Muzi, an auto analyst at Sinotrust Marketing Research and Consulting, was pessimistic about the development of the natural gas vehicle market, doubting the convenience of gas supply.
 
Zhou Ximin, deputy general manager of a gas company in Luoyang city of central China's Henan province, said that the biggest challenges for natural gas vehicle development are gas supply and future price changes, as under government control natural gas is likely to lose its price advantage over petroleum.
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