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Natural gas fuel development strategy to accelerate

2 October 2019
Газомоторное топливо переходит на стратегию опережающего развития
2 October 2019 during the 3rd Russian Energy Week an industrial meeting on ‘Accelerated Infrastructure Development: Strategy for the Development of the Natural Gas Motor Fuel Market’ took place under the chairmanship of Deputy Prime Minister of the Russian Federation Dmitry Kozak.

In 2013–2018 a large-scale pilot project has been completed, which resulted in numerous gas fuel stations open all over the country. Now, vehicles that run on CNG are a mainstay in the utilities sector and in mass transit.

According to Dmitry Kozak, in order to improve the competitiveness of the transportation industry while improving the environmental situation, 2019 saw the new stage of market expansion: implementing accelerated development strategy. It will allow for the investment to go into expanding the gas fuel fleet.
«Currently, a fully functional programme has been developed. It includes a roadmap and financing parameters for 27 regions until 2024. We are planning on implementing the cluster approach geographically on a stage by stage basis. The first pilot zone will include Nizhny Novgorod, Belgorod, and Rostov Regions, after which the programme will be expanded. Major highways need infrastructure that is actually going to be in demand. Utilities sector and urban mass transit switching to gas fuel will save the costs and decrease negative environmental footprint at the same time,» noted Deputy Prime Minister of the Russian Federation Dmitry Kozak.

Key indices will include the number of fuel station and the size of the fleet that uses them.

«Acceleration will be reached with state support. Yet, gradual network development in the regions not included in the priority list of the roadmap should not stop. During the next five years RUB 50 billion will be allocated to refurbish the current fleet, expand the vehicle line-up, support the demand for gas fuel-driven vehicles and build new fuel stations,» added Anton Inyutsin, Deputy Minister of Energy of the Russian Federation.

During the meeting, the experts elaborated on a wide range of issues, including infrastructural development tasks, expanding vehicle the line-up running on LNG and CNG, refurbishment programme development, measures stimulating the switch to gas fuel and its promotion, and creating investment opportunities.

«In 2019 the recuperation period for the gas fuel went down to 3.1 years. Improving the transportation efficiency is a key factor contributing to its procurement and usage in the country’s regions,» reported Deputy Minister of Industry and Trade Alexander Morozov.

Regional leadership present at the event spoke highly of the discounted leasing included in the roadmap and underscored the overall importance of the programme.

«Within the next three years Belgorod Region is planning to move all of the mass transit vehicle to gas fuel. We try to attract investors through tax incentives and leasing land bypassing the auctions,» said Evgeniy Savchenko, Governor of the Belgorod Region.

Sergei Tsivilev, Governor of the Kemerovo Region, shared the experience of expanding the gas fuel-driven fleet: «There are enormous 130-ton trucks running on gas fuel in Kuzbass. It already saved us RUB 3.5 million. This is a significant cost-saving and environmental improvement. I am confident these initiatives can be implemented across the entire coal and mining infrastructure.»

Gazprom Group is a key investor in the industry and works both with the regions and transport manufacturers. Vitaly Markelov, Deputy Chairman of the Board, Gazprom Board Member set the goal for increasing the share of gas fuel transport: it has to grow tenfold by 2024 and reach 7%. Cargo transport is expected to be key driver of growth. At least 189 gas fuel stations are to be open by the date, including those along the federal highways.
The Russian Energy Week is organized by the Ministry of Energy of the Russian Federation and the Roscongress Foundation with the support of Moscow Government.