Gazprom saves RUB 4.8 billion by converting its motor vehicles to natural gas

RELEASE

At meeting

A working visit by Viktor Zubkov, Chairman of the Gazprom Board of Directors, took place in Nizhny Novgorod today.

Viktor Zubkov held a meeting on the prospects of the Russian NGV market.

Taking part in the event were Igor Komarov, Presidential Plenipotentiary Envoy to the Volga Federal District; Vitaly Markelov, Deputy Chairman of the Gazprom Management CommitteeVladimir Markov and Vyacheslav Mikhalenko, Members of the Gazprom Management Committee and Heads of Departments; heads of the Company’s subdivisions and organizations of the Gazprom Group; representatives of the Russian Ministry of Energy, Ministry of Industry and Trade, Ministry of Transport, Ministry of Agriculture, and the State Duma; the authorities of the Nizhny Novgorod Region and other constituent entities of the Russian Federation; and industrial, transport, utilities and financial organizations.

Viktor Zubkov pays working visit to Nizhny Novgorod
Viktor Zubkov pays working visit to Nizhny Novgorod

Viktor Zubkov (center) at meeting on prospects of Russian NGV market

It was noted at the meeting that Gazprom is consistently working to expand the use of natural gas as a vehicle fuel. The main goal at this stage is to shape and develop the local NGV markets that will be subsequently linked via NGV corridors on key federal highways.

Between 2015 and 2018, Gazprom built 86 new NGV refueling units (state-of-the-art CNG filling stations and refueling modules at the existing gas stations, as well as platforms for mobile refuelers). It is planned to complete the construction of 43 units in 2019.

At present, Russian automakers are successfully producing a wide range of natural gas-powered vehicles numbering more than 220 models, including passenger, heavy and specialized vehicles.

Gazprom is converting its own vehicles to natural gas. From 2014 to the end of July 2019, the number of NGVs in the Gazprom Group’s vehicle fleet totaled 11,658 units, which accounts for more than 50 per cent of its vehicles that can be converted to gas. This figure is expected to reach 55 per cent by the end of 2019.

Examples of successful conversion of vehicles to gas in agricultural entities were also reviewed at the meeting. Special attention was paid to the federal and regional measures required to support and accelerate NGV market development in Russia.

“Natural gas is an effective tool for cutting costs in all sectors of the economy where transportation is involved, as is clearly demonstrated by the results of Gazprom’s work. We are actively converting our own vehicle fleet to natural gas. Since 2014, the Company has saved RUB 4.8 billion as a result of using natural gas instead of petroleum fuels, and pollutant emissions have been reduced by over 108,600 tons.

It is apparent that the greater the importance of vehicles in the activities of a commercial or governmental unit, the more significant will be the economic and environmental effect from converting vehicles to natural gas,” said Viktor Zubkov.

Gazprom’s delegation visited the factory of the GAZ Group in Nizhny Novgorod at which, among other things, NGVs are manufactured. Other places visited by the delegation included a taxi company that uses methane-powered passenger cars and an enterprise that manufactures gas cylinders for motor vehicles and mobile NGV refuelers. A specialized motor vehicle unit of Gazprom Transgaz Nizhny Novgorod offered the meeting participants an exhibition displaying up-to-date models of the NGVs employed in the business activities of the Gazprom Group.

Viktor Zubkov pays working visit to Nizhny Novgorod
Viktor Zubkov pays working visit to Nizhny Novgorod

Visit to factory of GAZ Group

Viktor Zubkov pays working visit to Nizhny Novgorod
Viktor Zubkov pays working visit to Nizhny Novgorod

NGV exhibition at specialized motor vehicle unit of Gazprom Transgaz Nizhny Novgorod

Background

The production and marketing of natural gas (methane) as a vehicle fuel is one of Gazprom's priorities. A special-purpose company, Gazprom Gazomotornoye Toplivo, was established for ensuring the continuous development of the NGV market.

Today, Gazprom has more than 300 refueling facilities for gas-powered vehicles in Russia.

Natural gas is one of the most eco-friendly and cost-effective motor fuels, with up to 10 times less hazardous emissions compared to other fuels, and with an average price of about RUB 16 per cubic meter. In terms of fuel consumption, 1 cubic meter of methane is equivalent to 1 liter of gasoline. It costs the drivers of methane-powered cars RUB 1.6 per kilometer driven. Within Gazprom’s NGV refueling network, natural gas is sold under the brand name EcoGas.

 

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