Strategy of Russian Gazprom

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.

On average, it comes to a five-time reduction of air pollution from natural gas-powered vehicles compared to gasoline-powered vehicles (for instance, CO₂emissions 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.Natural gas is the most eco-friendly fuel that is nowadays used by vehicles.

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.

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, VolgogrRostov-on-Don.

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.

Compared to 2011, in 2012 Russia

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.

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.

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.

Date: 2015-12-24; view: 779