Natural Gas 4 min read
29. Apr 2025

Our Guide to Compressed Natural Gas (CNG)

Compressed natural gas is a cleaner, cost-effective fuel used in transport, industry, and energy systems. This guide explains what CNG is, how it works, and why it matters for efficient and responsible energy use.
Industrial gas tanks in factories. LNG or liquefied gas storage. Global energy crisis. Energy crisis. Natural gas storage industry. Above-ground gas storage tank.

Compressed natural gas is handled as one of the cleaner types of fossil fuels. Derived from compressed methane, the odorless and non-corrosive gas causes lower emissions than traditional fuels and has become significantly important in the transport and energy sectors. By many, compressed natural gas is considered a reliable part of the energy transition.

This guide explains what compressed natural gas is, how it’s used, and where it fits in today’s energy systems.

What is compressed natural gas?

Compressed natural gas (CNG) is natural gas that has been compressed to a high pressure, typically around 200 to 250 bar, to reduce its volume and make it easier to store and transport. It remains in a gaseous state but takes up much less space than uncompressed natural gas.

Unlike liquefied natural gas (LNG), which is cooled to extreme temperatures to become a liquid, CNG is stored at room temperature in high-pressure tanks. This makes it simpler to handle in many everyday applications, especially for short-distance transport and local distribution.

How compressed natural gas is stored and transported

CNG is stored in robust, high-pressure containers made from steel or composite materials. These tanks are commonly mounted on vehicles or used in stationary applications like backup power units or industrial equipment.

For vehicle use, CNG is typically distributed through a network of filling stations connected to the regional gas grid. The gas is compressed on-site and delivered directly into vehicle tanks. In areas without direct pipeline access, CNG can also be transported by truck in portable storage cylinders. This method is also known as virtual pipeline transport.

Applications of compressed natural gas

Compressed natural gas is used in a variety of settings, with transportation being one of the most common due to its low volume.

  • Public transport: CNG buses are in use in many cities, offering lower emissions and quieter operation compared to diesel models.
  • Delivery and logistics: Fleet vehicles powered by CNG are popular in regional delivery networks due to lower fuel costs and emissions.
  • Private vehicles: Some passenger cars and vans are equipped with factory-installed or retrofitted CNG systems.
  • Industrial use: CNG is used in forklifts, generators, and some small-scale industrial heating systems.
  • Backup power: In certain regions, CNG-powered generators provide reliable electricity during outages or grid instability.

Further, CNG is being integrated into dual-fuel or hybrid systems, where it complements diesel or electricity to balance performance and sustainability.

8 examples of natural gas as a fuel source

Natural gas is used for much more than heating. This article explores eight practical examples of natural gas as a fuel source: from home heating to industrial power, transport, and microgrids. Find out where it fits into today’s energy systems and why efficient use matters.

Natural gas tank in the morning

Advantages of compressed natural gas

Using compressed natural gas offers a number of benefits, both environmental and economic. Compressed natural gas offers several advantages, especially in sectors like transport and small-scale power generation. It burns more cleanly than diesel or petrol, resulting in lower emissions of carbon dioxide, nitrogen oxides, and particulates. 

In many regions, CNG is also more cost-effective than conventional fuels, making it an attractive option for fleet operators and local energy providers. Engines running on CNG tend to operate more quietly, which is particularly useful in urban areas or during nighttime use. 

Because it can be distributed through existing pipeline networks, CNG also supports greater energy security by reducing reliance on imported fuels.

An overview of the advantages of compressed natural gas:

  • Lower emissions: CNG burns cleaner than petrol or diesel, producing significantly less carbon dioxide, nitrogen oxides, and particulates.
  • Cost savings: In many regions, CNG is cheaper per unit of energy than traditional fuels, especially for large fleet operators.
  • Quieter operation: CNG engines are typically quieter, making them a good fit for urban or nighttime operations.
  • Energy security: In areas with strong pipeline infrastructure, CNG provides a stable and locally available fuel option.

These advantages make CNG an appealing choice for companies looking to improve sustainability without compromising reliability.

Limitations and challenges of compressed natural gas

While compressed natural gas has clear advantages, it also comes with a few challenges. One of the main limitations is infrastructure. CNG requires dedicated refueling stations and high-pressure storage systems, which are not yet widely available in all regions. 

Vehicles and equipment must be specially designed or converted to handle CNG, which can mean higher upfront costs. In addition, CNG has a lower energy density compared to liquid fuels like diesel, which can reduce the range of vehicles unless larger tanks are used. 

An overview of the limitations of compressed natural gas:

  • Infrastructure requirements: Widespread use of CNG depends on the availability of refueling stations and maintenance facilities.
  • Lower energy density: CNG contains less energy per volume than liquid fuels, which can limit vehicle range unless larger or additional tanks are used.
  • Upfront costs: CNG-compatible engines and retrofits require initial investment, though these costs may be offset by long-term fuel savings.

Understanding these trade-offs helps operators and businesses make informed decisions about when and where CNG makes sense.

CNG in context: Where it fits in the energy transition

Compressed natural gas is often seen as a bridge fuel. That means it’s considered as a cleaner option that helps reduce emissions at present, while more renewable energy infrastructure is built. It’s especially useful in transport and logistics, where electrification can be difficult or expensive.

CNG can also be paired with renewable natural gas (RNG). Since RNG has the same chemical structure as fossil-based natural gas, it can be compressed and used in the same systems. This opens the door to even lower emissions without changing infrastructure or engine technology.

In this way, compressed natural gas plays a valuable role in creating more flexible and resilient energy systems, especially in areas where full electrification is not yet feasible.

How PowerUP supports efficient CNG engine operation

At PowerUP, we help operators get the most out of every gas-powered engine — including those running on compressed natural gas. Our focus is on efficiency, longevity, and reliability, especially in sectors where downtime isn’t an option.

We support CNG systems with:

  • High-precision engine parts designed for consistent, clean combustion
  • Repair and upgrades that improve performance and lower emissions
  • Condition-based overhauls that extend engine service life and reduce total cost of ownership
  • Remote diagnostics and monitoring, enabling early detection of wear and performance issues

By helping our customers use energy more efficiently, we support long-term sustainability and day-to-day operational performance — no matter the fuel source.

Whether you’re already working with compressed natural gas or considering a transition, PowerUP offers the expertise and support to help you operate more effectively and responsibly.

Related articles

Get your quote!

Looking for a tailored solution for your gas engine needs?
Request a quote from us today.
Let’s take the next step towards optimizing your operations!

Get your quote
Save Your Cart
Share Your Cart
Posts
Filter
Apply Filters