Tulsa Gas Technologies has become the largest manufacturer of CNG dispensers in North America. The company has offices in Tulsa, Okla., and New Delhi, India.

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Tulsa Gas Technologies Inc. started out as an electrical contractor in 1984, but that changed after installing a compressed natural gas (CNG) station for Phillips 66. “We had to do so much modifying to it to make it operate with gasoline station controls, we told them we could just make [a CNG dispenser] in the same amount of time,” founder and President Tom Sewell recalls. “They said, ‘OK. Make one in Oklahoma City right now.’ So we did.

“Within a year, we were in the equipment business, so that’s all we’ve been doing for the last 19 years.”

In those 19 years, Tulsa Gas Technologies has become the largest manufacturer of CNG dispensers in North America.

Essentially, a CNG dispenser resembles a typical gas pump, but it fills vehicles with compressed natural gas at a set price – in Oklahoma, it will remain at 90 cents gasoline gallon equivalent (GGE) for 2008, Sewell notes.

“Mostly we do heavy transit buses, trash trucks and a lot of fleet vehicles like UPS and gas utilities,” he says.

In 2001, the company opened up an office in New Delhi, India. “We’ve been doing work overseas for years, but in 1999, we started a fuel system in New Delhi that would fuel 8,500 buses a day,” Sewell says.

“So, we had to put a shop in there in 2001 because of the expanding growth and the maintenance of all those businesses.” In addition, Tulsa Gas Technologies intends to open up an office in Cairo, Egypt, later this year.

For Tulsa Gas Technologies, every manufacturing shop the company runs is what Sewell calls “a Winston Cup clean shop.

“And, we take very good care of our employees. But, we also expect top-quality work out of them. What I like about my employees is they are motivated and conscious of what they’re doing. They have pride in the parts they manufacture. I like to see a guy that’s proud of our business.

“Our dispensers cost around $30,000 and we expect them to look as nice as a $30,000 car when it leaves the shop – no dents, no scratches, it’s got to be perfect,” he adds.

Business Booms
Business has increased for Tulsa Gas Technologies ever since gas prices hit $3 a gallon, Sewell says. “After Katrina, our phones have run nonstop,” he notes. “Even during Katrina when gas stations ran out of gas, CNG [stations] stayed alive because they depend on distribution from gas utilities.

“The biggest advantage is 80 percent of the gas we use is from the United States, so all of the money we spend stays home. No. 2 is that it’s cheaper than gasoline and diesel, and you can get fixed pricing.”

He says federal tax credits enable the energy alternative to grow stronger still.

“One of the things that has made it so popular in Oklahoma is there is a 50 percent state income tax credit and that gave us work right off the bat,” Sewell comments.

“Honda manufactures a CNG-dedicated vehicle and 100 percent of the cost of the vehicle is covered in tax credits, and they’ve got 40 on order presold.”

Overcoming Obstacles
The main thing slowing down CNG is that “it is hard to convert the vehicles from gasoline to CNG because the Environmental Protection Agency [EPA] has a lot of control on the certification of the systems and it is very expensive to get the certification done,” Sewell notes.

“I don’t understand why they do not have a simpler process,” he says. “The EPA is doing their job and what Congress has told them to do, but the system we have in place is so hard.

“In Canada, they can take the same vehicles we have in the United States and if the emissions are fine, it can go out the door,” he adds. “We can’t even convert a vehicle here unless the system is precertified by the EPA.

“I also don’t understand why OEMs like Ford, Chevrolet and Chrysler do not manufacture CNG cars in the factory anymore,” he continues. “They built vehicles in 2005 and then they stopped.

“Now, there is such a demand for these vehicles that the used vehicles are getting more than the Blue Book price for the same vehicle.”

In fact, he adds, there are some dealerships in Oklahoma that are “taking it upon themselves to start doing conversions.”

Despite these obstacles, Sewell says he expects to see the industry continue growing.

“I don’t see why in the next five years we can’t be selling more than $10 million worth of the equipment a year if things continue to grow at the rate they’re growing right now,” he asserts. “Our whole industry is growing at the same rate.

“We’re going to continue to see new competitors coming into the market – people that don’t have a full understanding of this equipment – but competition is good.”