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The production and sales of compressed and liquefied natural gas as a vehicle fuel is one of Gazprom’s priorities. Gazprom set up Gazprom Gazomotornoye Toplivo, a special-purpose company, in order to ensure the systematic development of the NGV market.
Cost-efficiency and eco-friendliness
Natural gas is the most cost-effective, eco-friendly and safest type of fuel at present. The average price of 1 cubic meter of gas for vehicles in Russia is RUB 12, while the engines of gas-fueled vehicles comply with Euro 5 and Euro 6, Europe’s highest emission standards. According to the Russian Ministry of Emergency Situations’ classification, natural gas belongs to the category of the least dangerous flammable substances.
Two types of natural gas are used as a vehicle fuel: compressed natural gas (CNG) and liquefied natural gas (LNG).
The target segments of the NGV market are as follows:
- CNG fuel – passenger and light cargo transport, motor cars and municipal vehicles;
- LNG fuel – line-haul cars, railway and waterborne transport, quarry machinery and agricultural equipment.
Russian NGV fuel market
The consumption of natural gas as a vehicle fuel is steadily increasing in Russia.
There are several factors facilitating the considerable growth of the Russian NGV fuel market, such as:
- immense natural gas resources and a well-developed gas transmission system, which allows for a reliable and long-term NGV fuel supply;
- introduction of energy-efficient fuels used in transportation, including the conversion of passenger transport and municipal vehicles to natural gas in the cities with over 100,000 inhabitants;
- increase of the variety of natural gas-fueled equipment and expansion of the gas filling infrastructure;
- low price of NGV fuel compared to conventional fuels.
Gazprom singled out 10 priority regions for the purposes of NGV infrastructure development in Russia for 2015–2017, among them the Republics of Tatarstan and Bashkortostan, the Krasnodar and Stavropol Territories, and the Leningrad, Moscow, Rostov and Sverdlovsk Regions, as well as the cities of Moscow and St. Petersburg.
The Company signed agreements on wider use of natural gas as a vehicle fuel with 45 constituent entities of the Russian Federation.
As of February 2016, there are more than 270 CNG filling stations in Russia, 213 of them belonging to Gazprom.
Gazprom sold 433 million cubic meters of CNG through its gas refueling network over the course of 2015.
CNG sold at Gazprom’s CNG filling stations in Russia, million cubic meters
The Company is planning to complete the construction of 35 CNG stations and renovate 4 stations in 21 Russian regions in 2016. Gazprom’s CNG station network will include some 500 units by the end of 2020.
Moreover, Gazprom is currently developing projects aimed at installing natural gas compression units at the existing filling stations. The Company also uses mobile NGV refueling stations to deliver gas to areas remote from CNG stations.
There are about 110,000 natural gas-fueled vehicles in today’s Russia.
Gazprom Transgaz Samara’s bus at CNG filling station
Gazprom is making a significant contribution to increasing the number of natural gas vehicles in the country. The Company is implementing a special program for converting Gazprom-owned vehicles to natural gas. It bought 1,184 gas-fueled vehicles in 2015 and is planning to buy 1,459 more in 2016.
Foreign NGV fuel markets
The wider use of natural gas in road and waterborne vehicles is one of Gazprom’s focus areas in the European market as well.
CNG filling station in Germany
With regard to NGV fuel, Gazprom Group is represented in Germany, the Czech Republic and Poland by its subsidiary Gazprom Germania GmbH.
As of 2015, Gazprom operates 28 compressed natural gas filling stations in Germany and owns 12 gas filling stations in the Czech Republic. It also has an LNG filling station for buses in Poland, with another filling station under construction.
In addition, Gazprom is developing the NGV markets in Belarus, Vietnam, Kazakhstan and Kyrgyzstan.