Australia's CNG refuelling market boosted by Caltex entry

Caltex has taken a lead in the Australian natural gas transportation market by launching a Compressed Natural Gas (CNG) refuelling facility, becoming the first of the major fuel suppliers to do so.

Partnering with AGL Energy Limited (AGL), Caltex will bring CNG to its Star Mart site at Tullamarine. The facility opened yesterday and is expected to mainly serve truck fleets already operating on the fuel.

Despite the low demand for CNG, Caltex’s Executive General Manager Commercial, Bruce Rosengarten, said they hope to encourage private motorists to switch over to natural gas by providing more service points.

“While commercial trucks, buses and machinery represent the vast majority of the 3000 existing CNG vehicles operating nationally, building this type of refuelling infrastructure will give motorists with compatible vehicles access to the niche fuel too,” Rosengarten said.

According to Rosengarten, a major barrier is the lack of new vehicles designed for CNG, resulting in a lack of demand for refuelling facilities.

“By opening the Tullamarine CNG facility, Caltex and AGL will ensure the alternative fuel is available,” added Rosengarten.

Natural gas powered vehicles are a growing market with more than 13 million units worldwide, most of them designed for CNG. Lower running costs, reduced emissions and potentially more stable pricing are some of the reasons behind its surge.