Gas use in vehicles

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Gazprom Gazomotornoye Toplivo – a sole operator company focused on expanding the use of natural gas as a vehicle fuel

 

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Strategy

The production and marketing of compressed and liquefied natural gas as a vehicle fuel rank among Gazprom’s top priorities. Gazprom Gazomotornoye Toplivo, a special-purpose company, was set up as part of the systematic efforts to develop the natural gas vehicle (NGV) market.

Exceptionally economical and eco-friendly

Natural gas is the most economical, eco-friendly and safe type of fuel available today. It is essentially a ready-to-use vehicle fuel, which makes it much cheaper than gasoline and diesel fuel. Moreover, the engines of gas-fueled vehicles comply with the highest emission standards, Euro 5 and Euro 6. According to the Russian Emergencies Ministry’s 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 market segments for the fuel are as follows:

  • CNG – passenger and light cargo transport, motor cars and municipal vehicles;
  • LNG – line-haul cars, railway and waterborne transport, quarry machinery and agricultural equipment.

Russian NGV market

The use of natural gas as a vehicle fuel is steadily increasing in Russia.

The Russian NGV market has a considerable capacity for growth, which is facilitated by:

  • immense natural gas reserves and a well-developed gas distribution network providing for reliable supplies of gas as a vehicle fuel in the long term;
  • introduction of energy-efficient fuels in transport, including via conversion of passenger and municipal vehicles to natural gas in the cities with over 100,000 people;
  • growing variety of natural gas-fueled equipment and the expanding gas filling infrastructure;
  • low price of natural gas compared to conventional vehicle fuels.

As of December 31, 2019, there were 299 operational CNG filling stations owned by the Gazprom Group in Russia, of which 239 were operated by Gazprom Gazomotornoye Toplivo and 60 by the subsidiaries of Gazprom.

Gazprom’s CNG station
Gazprom’s CNG station

Gazprom’s CNG station

Gazprom sold 779.2 million cubic meters of CNG through its gas filling network in 2019.

Vehicle being refueled by mobile cryogenic refueling unit
Vehicle being refueled by mobile cryogenic refueling unit

Vehicle being refueled by mobile cryogenic refueling unit

NGV infrastructure development

The strategic approach to creating a retail station chain in Russia implies an expansion of the NGV infrastructure in 60 constituent entities of the Russian Federation.

CNG station in Moscow (operating since 2017), largest station of its kind in Russia and Europe
CNG station in Moscow (operating since 2017), largest station of its kind in Russia and Europe

CNG station in Moscow (operating since 2017), largest station of its kind in Russia and Europe

In conjunction with the Federal Road Agency, the General Layout for gas filling infrastructure on federally maintained roads was developed. The Layout provides for the creation of a core network of 181 facilities by 2030 and the establishment of so-called NGV corridors on key existing and planned highways across Russia.

In 2019, construction of 23 CNG stations, three platforms for mobile refuelers, and one cryogenic filling station (with an LNG refueling point and a CNG refueling point) was completed. Two CNG stations were bought from entities outside the Gazprom Group.

Construction site of first cryogenic filling station on M-11 Moscow – St. Petersburg highway
Construction site of first cryogenic filling station on M-11 Moscow – St. Petersburg highway

Construction site of first cryogenic filling station on M-11 Moscow – St. Petersburg highway

Work is underway to build an LNG production and utilization infrastructure for the NGV market. In addition, Gazprom approved the 2016–2032 Development Program for small-scale LNG production and use.

Foreign NGV markets

The increased use of natural gas in road and waterborne vehicles is a focus area for Gazprom in foreign markets as well.

CNG station in Germany
CNG station in Germany

CNG station in Germany

In Europe, Gazprom carries out NGV-based activities in Germany, the Czech Republic, and Poland through Gazprom NGV Europe, as well as through NIS, which is affiliated with the Gazprom Neft Group and sells CNG in Serbia.

In 2019, Gazprom had 68 CNG stations in European countries. CNG and LNG sales in Europe via the Gazprom Group-owned stations totaled 13.8 million cubic meters that year.

The Gazprom Group also sells CNG at CNG stations based in Armenia, Belarus, and Kyrgyzstan. In 2019, the volume of sales amounted to 55.4 million cubic meters.

Joint efforts for NGV market development are being made with partners from China, Germany, Hungary, Kazakhstan, the Republic of Korea, and Vietnam.