An agreement to set up a joint venture — LLC Vankorsky UTT — for construction and operation of a network of CNG stations in Russia was signed by Rosneft and Beijing Gas Group Company Limited (hereinafter, Beijing Gas), the largest supplier and services provider of piped natural gas in China, during the first Russian-Chinese Energy Business Forum.
Under the agreement, Beijing Gas will have a 45% stake.
Pursuant to the document, the parties will build about 170 CNG stations in Russia, and consider the options of using LNG as a motor fuel. The document will enable the development of strategic cooperation between the partners in the use of natural gas as an ecological fuel.
Development of the CNG station network in Russia is among key priorities of Rosneft’s Retail Business: the use of CNG as a motor fuel will increase the effectiveness of vehicles operation due to transportation cost reduction, and reduce a negative environmental impact of motor vehicles. It is consistent with Rosneft-2022 Strategy and with the Instruction of the RF President concerning the need to develop a market for natural gas a motor fuel.
Rosneft is 50.00000001% owned by JSC ROSNEFTEGAZ, which in turn is fully owned by the Russian Government.
Beijing Gas, part of Beijing Enterprises Group Limited, manages over 20 gas projects in the People’s Republic of China.
In June 2017, Rosneft and Beijing Gas Group Company Limited closed the deal to sell a 20% stake in Verkhnechonskneftegaz (operating in Eastern Siberia) to the Chinese company. The price of the acquired stake was about $1.1 billion. Vankor Field is an oil and gas field in Eastern Siberia.