Following the signing of an Agreement on the prices (tariffs) formation procedure for natural gas supply to the Republic of Belarus and transmission via gas pipelines located in the country last week, Gazprom took full control of Beltranzgas, a natural gas infrastructure and transportation company of Belarus. While the main outcome will be increased gas supply to Europe by Gazprom, it will also provide impetus for economic development in Belarus, including stimulating a natural gas fuel market for transportation.
The subject of discussion between Alexey Miller, Chairman of the Gazprom Management Committee and Alexander Lukashenko, President of the Republic of Belarus, the prospects for gas use as a motor fuel in Belarus were explored. It was noted that the conversion of vehicles and facilities to gas would allow vehicle owners and manufacturers to considerably cut down their fuel expenses, since methane prices in the Republic are much lower than those for gasoline and diesel fuel. Eventually, these actions may become one of the effectual measures for improving performance of the Belarusian economy.
The parties stressed that the measures for increasing the NGV fuel sales volumes should be actively implemented in cooperation with the government authorities. In addition, attention should be paid both to the expansion of compressed natural gas (CNG) vehicle fleet and to the promotion of the NGV fuel use in motor vehicles.
(This article compiled using information from a Gazprom press release)