Comprehensive Government Support to Speed up NGV Fuel Market Development in Russia

| Russia, Moscow

Following a┬ámultisectoral meeting on the promotion of NGV fuel use in July this year, Gazprom’s Board of Directors have again met to discuss natural gas vehicle (NGV) fuel market development, progressing its domestic market objective to considerably expand the NGV fuel business while positively addressing fuel-related societal issues of environmental friendliness and economic efficiency using NGV fuel.

The Board discussed the absence of a federal law to set in place measures to promote the conversion of motor transport to gas, as one of the main problems for the domestic NGV fuel market development.

Consequently, Gazprom issued a proposal to the Russian Federation President to entrust the concerned ministries, departments, oil and gas companies with a task to prepare a draft document determining target values and specific measures of government support to conversion of motor transport to gas. That issue is already being elaborated in the Russian Federation Government.

Gazprom decided on including a special section concerning motor transport conversion to gas into the Russian Regions Gasification Program beginning with 2013.

The Board of Directors charged the Management Committee with the continuation of work on expanding the use of natural gas as a motor fuel in Russia in cooperation with state authorities. At the moment, gas filling capacities are being promoted in Eastern Siberia and the Far East. A CNG filling station has already been built in Bratsk. A methane filling station is being designed in Petropavlovsk-Kamchatsky. In the nearest future, CNG filling stations will be built in Khabarovsk, Blagoveshchensk, Vladivostok and Yuzhno-Sakhalinsk.

Cooperation agreements on natural gas use as a motor fuel have been entered into with the Kaluga, Orel, Nizhny Novgorod and Tambov Regions. Regional regulatory acts aimed at developing local CNG markets have been adopted in Moscow, the Stavropol Territory, the Sverdlovsk, Tambov, Kaluga and Saratov Regions and the Republic of Tatarstan.

Today, 243 compressed natural gas (CNG) filling stations are operating in 59 Russian regions, 208 owned by Gazprom, servicing approximately 86,000 NGVs.

In 2011, 361.6 million cubic meters of compressed natural gas was sold through Russian CNG filling stations, which is 16.6 million cubic meters more than in 2010, but amounts only to 18 per cent of Russian CNG filling stations’ design capacity.

The Management Committee was also tasked to continue work on expanding the use of natural gas as a motor fuel abroad, among other things through constructing or purchasing CNG filling stations. The Board of Directors will be made aware of the progress with this work in the first quarter of 2013. In the European NGV fuel market, Gazprom Group is currently represented in Germany and in the Czech Republic.

(This article compiled using information from a Gazprom press release)

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