LNG implementation in fleets

A Hypothetical ROI Analysis

The significant price advantage of LNG over diesel (approximately $1.23 a fully delivered diesel gallon equivalent) allows fleets to receive a very fast return on the invest (ROI) they make in the additional capital expenses needed when converting to LNG. These expenses include natural gas engine trucks, fueling stations and possible maintenance upgrades.

Typically, the ROI is two years or less for the average trucking fleet. From a corporate perspective, this payoff is extremely attractive. The ROI Analysis below enables fleet owners to make the case for an economic and sustainable transportation solution for their fleet.

Inputs and Assumptions
Total Trucks: 50
Annual Mileage/Truck: 100,000
Annual Diesel Gallons for Tractors: 793,650
Diesel fuel economy: 6.3 mpg
5% fuel economy degradation for LNG
No truck residual values included
Diesel: $3.006 (2/18/19 EIA national retail average)
RINs Value: 2.5%, $0.04/gallon
Both fuels shown at fully delivered, fully taxed price
LNG IN taxes: $0.714/gallon
Incremental cost for LNG Truck: $43,971
Kinetrex provides the Fueling Station
Natural Gas Maintenance Center Upgrades included at $100,000

About Kinetrex Energy

Kinetrex is the U.S.’s leading inter-state liquefied natural gas (LNG) company and operates two significant LNG production facilities. Kinetrex provides turn-key energy solutions from a comprehensive portfolio of natural gas solutions including: LNG, renewable natural gas (RNG) and pipeline natural gas for customers in the transportation, commercial, industrial, agricultural and power markets.