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Global oil & gas majors eyeing Russian startup to transform their fueling business

On September 21, Gastech’s global conference for major players of Gas and LNG industry will kick-off in Dubai World Trade Centre United Arab. It is set to reunite the industry as well as to set the tone for the future direction of the industry seeks to strike a balance between business priorities and the social license to operate. And one of the obvious problems to be solved is where to distribute fuels while the world is galloping towards a carbon free future. As such oil and gas producers are seeking for technologies to transform their existing business models. 

The electric car industry is expanding rapidly. The International Energy Agency says the number of electric cars, buses, vans and heavy trucks on roads is expected to hit 145 million by 2030. It is also predicted that in 20 years more than 50% of new cars on roads worldwide will have an electric powertrain. This rapid transformation poses a serious question for gas stations, service stops and other roadside businesses that need to attract motorists as well as for oil and gas majors to which these services are a bold share of their business.

Gasoline sales have been declining steadily since the 2007 crisis. And while combined sales of diesel and gasoline peaked in 2017, with the electrification of the vehicle fleet it seems unlikely that this figure will ever recover. This dramatic transformation wasn’t the case just a couple of years ago, though innovations with batteries and re-energizing methods continue to emerge, a full recharge still takes anywhere from 40 minutes to an entire night. This means the process requires places for cars to sit, making home charging and parking lot plug-ins. A 50-kilowatt charger can add 100 kilometers of range in 25-30 minutes. Different EV models are limited to certain charging rates, which have been rising as electric vehicles technology quickly advances. Charging companies contract with a wider variety of locations — grocery stores, malls, hotels, workplaces, parking garages — generally places where people can pass the time waiting for a charge. All of these take clients away from the traditional gasoline stations.

However, most of EV chargers are too slow. There are over 2 MM charging stations worldwide and they are not enough. Russian startup presented its service in Moscow earlier this year seems to have the solution.

“This is the right time for first movers to transform their gas stations into energy hubs. The infrastructure and technology needed to give EV owners a fast and seamless charging experience already exists. It’s easy to fit. It’s scalable. And for gas station owners, it’s a great way to stand out from the crowd, build brand loyalty, future-proof their business and attract a new wave of consumers” – Dmitry Lashin CEO of L-Charge said.

L-Charge off-grid charger adds more than 100 km of range in 3-8 minutes. Their EV charger is actually a mini powerplant. It uses the cleanest fuel types for their chargers: LNG (liquid natural gas) or an LNG/H2 mixture (the ratio depends on regulations and fuel prices) or pure H2. Natural gas and hydrogen can be stored and transported as a gas or as a liquid for conversion into low-carbon or clean and feasible energy almost anywhere in the world.

Using LNG or an LNG/H2 mixture instead of connecting to the power grid connection is the most efficient way to provide power on site. Low carbon fuels are currently the most economically feasible solution and can be used as a bridging technology towards a carbon-neutral solution such as hydrogen. Even using pure LNG to charge EVs is already a great move to more than two times reduce emissions. Altogether with it creates extra demand for LNG globally and could help traditional gasoline stations transform their business and help their owners to adjust with the low carbon future.