Natural Gas As Vehicle Fuel Blows Past Expectations In Texas

With new stations being built and more fleets converting, sales of natural gas as a vehicle fuel more than doubled expectations in Texas, Railroad Commissioner David Porter said.

"Natural gas vehicles are becoming mainstream faster than expected," Porter said. "And there’s plenty of room for growth. These excellent sales figures represent only a fraction of potential sales, as more and more fleet operators take advantage of the cost savings, lower emissions, and energy security benefits of Texas natural gas."

The state collected more than $2.1 million in taxes on compressed natural gas and liquefied natural gas in the 2014 fiscal year, which ended July 31. That’s 220 percent higher than the $992,000 forecast.

The tax is 15 cents per gallon so the tax revenue represents more than 14.5 million gallon equivalents of natural gas being sold for vehicle fuel. The gallon equivalent is the amount of natural gas needed to get the same energy content as a gallon of gasoline.

Texas is the third-biggest consumer of natural gas as a vehicle fuel behind California and New York, according to the Energy Information Administration.

In May, Texas consumed 205 million cubic feet of natural gas as a vehicle fuel. New York consumed 360 million and California used more than 1.3 billion cubic feet.

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