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
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, 2018, there were 293 operational CNG filling stations owned by the Gazprom Group in Russia, of which 235 were operated by Gazprom Gazomotornoye Toplivo and 58 by the subsidiaries of Gazprom.
Gazprom sold 598.2 million cubic meters of CNG through its gas filling network in 2018.
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
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 2018, 21 CNG stations and three platforms for mobile refuelers were built or bought out from private investors. In addition, four CNG stations and two platforms for mobile refuelers underwent renovations.
Construction site of first cryogenic filling station on M-11 Moscow – St. Petersburg highway
The Company is implementing the 2017–2019 Program for the construction of gas filling infrastructure at the industrial sites of Gazprom’s subsidiaries, with 100 gas compressor units to be installed for servicing corporate vehicles.
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.
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 2018, Gazprom had 70 CNG stations and cryogenic filling stations in European countries. CNG and LNG sales in Europe via the Gazprom Group-owned stations totaled 12.9 million cubic meters that year.
The Gazprom Group also sells CNG at CNG stations based in Armenia, Belarus, and Kyrgyzstan. In 2018, the volume of sales amounted to 42.3 million cubic meters.
NGV infrastructure construction projects are underway in Bolivia and Vietnam.