Media 2008-07-31 "Compressed Natural Gas?" DLP

Press Release
31st July 2008

"Compressed Natural Gas the way to go?" DLP

Peter Kavanagh, DLP MLC for Western Victoria in Parliament yesterday, encouraged the Victorian government to consider promoting Compressed Natural Gas (CNG).

Mr Kavanagh observed that :
-CNG cars are being sold in the US and distribution networks there are being expanded rapidly.
-Australia has huge resources of natural gas which are being exported at very low prices.
-Natural gas produces almost zero emissions.
-Australia's balance of trade could benefit enormously from replacing oil imports with CNG.
-Unlike LPG, CNG is not derived from oil.
-CNG has the potential to dramatically cut fuel costs for motorists.

Mr Kavanagh's speech in Parliament follows:


VICHANSARD
Title: Motor vehicles: alternative fuels
House: COUNCIL
Activity: Questions without Notice
Members: KAVANAGH
Date: 30 July 2008
Page: 2787

Motor vehicles: alternative fuels

Mr KAVANAGH (Western Victoria) -- My question is for the Minister for Industry and Trade and relates to innovation in alternative fuels. Of the many possible alternative sources of energy for cars, compressed natural gas (CNG) seems to be ideally suited to Australia because we have vast reserves of natural gas which we are exporting at very low prices. CNG, unlike liquefied petroleum gas, is not oil or petroleum dependent. The technology has been proven and is growing rapidly in the USA, where Honda is providing a CNG-dedicated car. CNG has almost no emissions, and its widespread use would greatly benefit our balance of trade by replacing oil imports. Of course, CNG also has the potential to greatly reduce the cost of fuel for motorists in Australia.

I ask the minister: as Victoria is the centre of Australia's car building industry, does the government have any plans to encourage car producers here to build CNG vehicles or to spur, or even help, distributors to establish networks for the retailing of compressed natural gas?

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For further comment, please call Peter Kavanagh 03 5222 1503.