Prospect of CNG Vehicle Development in Shanghai, China

Compressed Natural Gas (CNG) is a clean substitute fuel for vehicle with broad application prospect, due to its enormous advantage in resource, environment and economy. This paper investigated development of CNG vehicle in Shanghai. Main factors constraining CNG vehicle application in Shanghai were scarcity of gas resource and gas station, declining in power performance and higher original investment CNG vehicle in Shanghai has broad prospect. CNG vehicle showed remarkable economic benefit. Calculation showed obvious reduction in fuel cost, 77.71 million RMB and 158.35 million RMB per year with 50% and 100% fuel replacing by CNG for public bus in Shanghai, while 129.42 million and 258.71 million RMB with 50% and 100% fuel replacing for taxi. Sufficient gas resource supply will be guaranteed, estimating 10 billion m3 totally in 2011. Positive policies are initiated by the government. Development of related technologies strongly supports its application. However, further improvements on CNG engine, gas station and government policy are essential.