China counts on NGV in cleaning up the air

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China hopes that natural gas vehicles (NGV) will improve the country’s ecology. At the annual trade exhibition experts from all over the country and industry discussed ways to develop the country’s “Oil to Gas” policy, oilprice.com informs.

Since 2014 sales of NGVs in China have been getting lower and lower. The reason is the cost of oil to natural gas in the country. At a ratio below 0.5:1 NGVs were quite popular with the local consumers, while with a ratio of 0.75:1 much fewer Chinese citizens prefer natural gas vehicles to traditional cars.

Natural gas has always been centrally priced in China. Price liberalization has been happening only in some cities, lowering the prices according to market demands. Moreover, Chinese government sets prices for all kind of fuel and if international oil prices below $40 a barrel, China will not decrease prices further on refined crude products. Analysts suppose that it may ensure a price ratio of 0.65:1 and no one who switches to natural gas from oil will get back.