July 25, 2024. China’s sales of heavy-duty trucks powered by liquefied natural gas (LNG) rose from below 10% to reach as much as 30% of the market in the latter months of 2023 resulting in the displacement of over 8% of road diesel demand in the country according to a report by Wood Mackenzie.
The report: ‘The threat to diesel from LNG trucking in China’, states that around 220,000 barrels a day of road diesel demand has been replaced by LNG as end-users take advantage of a number of favourable conditions for switching to LNG-fueled vehicles.
“China has been implementing various policies to promote LNG trucks and restrict diesel trucks as part of its efforts to reduce air pollution and lower carbon emissions, including encouraging refueling infrastructure,” says Shiqing Xia, Consultant for Oils and Chemicals at Wood Mackenzie. “Low natural gas prices have also helped in making the switch to LNG-powered vehicles more attractive.”
The report adds that heavy-duty trucks account for over a quarter of the commercial vehicle fleet in China, reaching 8.76 million vehicles by 2023. The number of diesel trucks peaked in 2021 and has been declining thereafter, resulting in LNG’s share of the heavy trucking fleet to increase to over 9% by 2024.
