Gazprom to Expand NGV Fuel Activities, Russia

The Gazprom Board of Directors took notice of the information relevant to the comprehensive regional gasification with due account of the NGV fuel market development.

It was noted that since 2013 the annual Program for Russian Regions Gasification, regional programs for gas supply and gasification development and synchronization schedules for gasification programs will contain mandatory sections on the NGV fuel use and the appropriate infrastructure development. The sections, in particular, will stipulate obligations of the parties to expand the network of CNG filling stations, to provide land for construction and to convert vehicles to compressed natural gas (CNG) in parallel with new CNG filling stations construction.

Gazprom has sent proposals on joint development of the NGV infrastructure to 69 regions participating in the Gasification Program. To date, 37 of them are ready to confirm their commitment to convert vehicles to CNG or purchase them by the time when the CNG filling stations are constructed. Currently, Gazprom is preparing a feasibility study for construction of 37 CNG filling stations in 17 regions.

In addition, it is planned to consolidate Gazprom Group’s assets on the CNG production and sales in a specialized company in order to improve the NGV fuel strategy implementation.

Further joint work of Gazprom and the Russian Federation constituents will accelerate the NGV fuel market development and will start building the nation-wide NGV fuel infrastructure. Consistent implementation of this project will enable the regions to save significantly on transportation costs, as gas is cheaper than conventional fuels: diesel and gasoline. Agroindustrial companies will significantly save on reduced fuel costs, especially during the sowing and harvesting campaigns.

Natural gas remains to be the cleanest fuel. Its active use will significantly reduce emissions of harmful substances into the atmosphere and improve the environmental situation in the residential areas.

The Board of Directors requested the Management Committee to continue the comprehensive regional gasification by including special sections on motor fuel in the gasification programs, particularly providing for the NGVfuel infrastructure development.

[mappress]
LNG World News Staff, December 05, 2012; Image: Gazprom