Site map Contact information RU EN DE Contrast site version All Gazprom websites About Gazprom Investors Media Environment Social Responsibility Careers Gazprom today Governance Production Gas and oil reserves Gas and oil production Gas purchases Transmission Processing Power industry Gasification NGV fuel Projects Marketing Strategy Subsidiaries History Legal information About Gazprom / Production / NGV fuel Photo essay To Black Sea for 500 rubles Install Adobe Flash Player Strategy Infographics The wider use of natural gas as a vehicle fuel is a strategic business activity of Gazprom. With this objective in mind, the Company set up Gazprom Gazomotornoye Toplivo a special-purpose company that became an integrated operator focused on NGV market development in the Russian Federation. NGV fuel and environment Natural gas is the most eco-friendly fuel that is nowadays used by vehicles. Gas-powered bus Enlarged photo (JPG, 2 MB) On average, it comes to a five-time reduction of air pollution from natural gas-powered vehicles compared to gasoline-powered vehicles (for instance, CO2 emissions are down by 25 per cent and carbon monoxide – by 80 per cent). In big cities where a share of motor fleet may reach 90 per cent of all air pollution sources, the vehicle conversion to natural gas will help ease the burden on the environment and, as a consequence, improve public health. CNG and LNG Two types of natural gas are used as a vehicle fuel: compressed natural gas (CNG) and liquefied natural gas (LNG). Target segments of the market are as follows: CNG fuel – road transport (passenger and public transport as well as mid-sized commercial vehicles); LNG fuel – road transport (heavy-duty and long-haul vehicles) as well as marine and rail transport. What is compressed (pressurized) natural gas What is liquefied natural gas Pilot projects in Russia With a view to implement phase one of municipal transport conversion to natural gas, the Company identified 10 pilot projects to be carried out in Moscow and the Moscow Region as well as in St. Petersburg, Tatarstan, Nizhny Novgorod, Yekaterinburg, Krasnodar, Tomsk, Volgograd and Rostov-on-Don. CNG consumption Russian CNG market Compared to 2011, in 2012 Russia showed a 5 per cent increase in CNG consumption as a vehicle fuel – up to 390 million cubic meters (0.45 million tons of fuel equivalent). If the Russian market continues to progress steadily, by 2020 the CNG fuel consumption is forecasted to increase up to 10.4 billion cubic meters per year. Potential CNG fuel consumption in Russia, billion cubic meters. Factors favoring the potential for intense growth of the Russian CNG fuel market are as follows: immense natural gas resources and well developed gas transmission system that allows for reliable NGV fuel supplies in a long run; high environmental performances; low price of CNG fuel compared to prices of conventional fuels. CNG filling station in Samara Enlarged photo (JPG, 259 KB) The wider use of CNG fuel in public, commercial and private vehicles becomes an important stage of the CNG market development in Russia. When it comes to growing prices of gasoline and diesel fuel, as well as to worsening environmental conditions, particularly in big cities, such an approach is proved to be cost-effective and eco-friendly. Gas-fueled KAMAZ truck, purpose built sports model Enlarged photo (JPG, 1 MB) It is anticipated that by 2020 the proportion of CNG fueled transport to vehicles powered by conventional fuels will be as follows: public transport and municipal vehicles – 50 per cent; freight transport for local trucking services and lightweight commercial vehicles – 30 per cent; private vehicles – 10 per cent; agricultural equipment – 20 per cent. CNG filling station owned by Gazprom Transgaz Stavropol Enlarged photo (JPG, 3 MB) Russian LNG market prospects Liquefied natural gas use as a vehicle fuel will be a new stage of improving technological and economic efficiency of transport. It is the most sought-for fuel in long-distance cargo transportation, in railway vehicles as well as in agriculture (heavy agricultural equipment). Global LNG sales behavior and forecast, million tons a year Provided that all the planned measures aimed at the Russian LNG market development are implemented, including the construction of required LNG production capacities, the aggregate consumption of this fuel in the transport sector will reach 3.8 million tons by 2020. Estimated growth in LNG demand in Russia according to target segments, thousand tons It is planned that in Russia the share of vehicles using LNG as a motor fuel as compared to the same means of transport running on conventional fuels will reach the following rates by 2020: agricultural equipment – 20 per cent; long-distance motor vehicles – 30 per cent; rail transport – 2 per cent. Priorities of Russian NGV market development 1. Creating the infrastructure for the Russian NGV market development: construction of compressed natural gas filling stations, cryogenic filling stations, natural gas liquefaction facilities and other required facilities. 2. Consolidating investment resources to develop the Russian NGV market infrastructure. 3. Optimizing the law regarding the NGV market and creating efficient Government regulation mechanisms in the sector. CNG filling station in Krasnodar Enlarged photo (JPG, 1 MB) 4. Diversifying natural gas-powered vehicles and equipment: Gazprom cooperates with major motor vehicle manufacturers and distributors, namely, KAMAZ, AVTOVAZ, GAZ Group and Kirov Plant, VOLGABUS, MAN Truck & Bus Rus, Iveco Russia and STORK. A Memorandum of Cooperation in the NGV sector was signed with Russian Railways. Gazprom in foreign NGV markets The wider use of natural gas in road and waterborne vehicles became a new area of Gazprom’s activities in the European market. The imposed limits of emission into the Baltic and North Seas as well as Euro-6 standards required from motor vehicles allow forecasting a high demand in natural gas as a vehicle fuel in Europe. Gazprom plans to create the infrastructure for production, transmission and distribution of LNG and CNG as motor fuels. Gazprom is represented in the European market (as of 2012 – in German, Czech and Slovak markets) by its subsidiary companies Gazprom Germania and Vemex. In 2012 the number of CNG filling stations owned by Gazprom’s subsidiaries in these countries increased from 4 to 12, and it is planned to raise their number to 30. CNG filling station in Germany Enlarged photo (JPG, 2 MB) Gazprom Group intends to expand its presence in the European NGV sector both through constructing or acquiring CNG filling stations (mostly in Germany, Poland, the Czech Republic, Turkey and some other countries) and through offering in collaboration with car makers the kits for converting motor vehicles owned by major transportation companies from oil to natural gas. The Gazprom Group companies consider the possibilities for NGV projects implementation outside Europe as well. For instance, in 2012 Gazprom International held talks with PetroVietnam regarding the possibility of implementing the project for CNG production and use in Vietnam. In 2012 Gazprom started taking measures for creating the client portfolio in the segment of marine vessels LNG bunkering through concluding non-binding agreements with prospective consumers. In particular, on September 20, 2012 a Memorandum of Understanding was signed between Gazprom and Summa Group providing for the use of Gazprom’s LNG as a bunker fuel for marine vessels owned or operated by Summa Group as well as the cooperation between the companies in developing the bunkering infrastructure. In September 2013 Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee and Mladen Antunovic, Chief Executive Officer of the state-owned LNG Croatia signed a Roadmap to implement projects for natural gas use as a motor fuel in the Republic of Croatia. The document defines the priority action plan for Gazprom to cooperate with Croatian transportation companies and logistic operators as part of the pilot projects for municipal bus fleets gasification in Croatia. © 2003–2015 GazpromContact information Accessibility Send... Print...