LNG as fuel: demand opportunities and supply challenges in Austria

The transport sector is one of the most energy consuming and highest emission-causing sectors. In order to counteract this circumstance, the European Commission has developed a European alternative fuels strategy. This strategy also encompasses the use of liquefied natural gas (LNG). In Austria, as well as in other landlocked European countries, LNG offers new market opportunities. However, there are lots of uncertainties and hurdles like no existing LNG infrastructure and very limited supply options to overcome. To make a significant contribution for the introduction of LNG as a fuel in Austria, the aim of this paper is on the one hand to identify pioneer customers to define interest and demand for LNG as a new fueling alternative and on the other hand to investigate different supply options and their economic performance. The analyses were conducted through desktop research, inquiries to LNG suppliers and transport companies as well as interviews with operators. First results of the supply analysis revealed LNG transportation costs, depending on the choice of transport mode (train, truck or inland vessel) and the reference terminal (Rotterdam or Zeebrugge). Findings of the demand analysis have highlighted that some interview partners already considered switching to LNG for very different purposes, whereby for other partners LNG is not an option. In fact, the missing LNG infrastructure and various hurdles in different supply options have been identified as the most apparent obstacle, which is impeding LNG usage