Fuel cost savings with natural gas

You can save big on fuel costs when using liquefied natural gas (LNG) rather than diesel.

LNG fuel rates

Natural gas rates for transportation are similar to rates for our residential and commercial customers. We buy natural gas on the open market and do not mark up the cost of gas—you pay what we pay. We review rates regularly with the British Columbia Utilities Commission (BCUC) and the BCUC must approve any changes to our rates.

A typical rate for LNG refuelling includes:

• Delivery charge: the charge to deliver natural gas through our system.
• Commodity charge: the cost per gigajoule of natural gas you use. (One gigajoule is equivalent to 25.9 litres of diesel.¹)
• Basic charge: a fixed, flat daily fee that partially recovers the fixed cost of our system and service.
• Fuelling charge: a regulated cost of service based on your fuelling station costs and minimum volume commitment.

Like gasoline or diesel, natural gas for transportation is subject to the BC carbon tax. But since natural gas is a lower carbon fuel, it’s taxed at a lower rate.

Payback period: recouping your vehicle upgrade investment

While natural gas vehicles have a higher initial cost, the fuel cost savings offered by natural gas vehicles can mean a three- to four-year payback period, and with our incentives this can be reduced further. Your payback timing will depend on vehicle type, fuel consumption and annual mileage.

¹Calculation based on GHGenius model which is based on Canadian fuel and supply sources.