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Gazprom: Gas Motor Fuel Market in Russia and Globally

Oleg Aksyutin

Head of Gas Transportation, Underground Storage and Utilization Department, Gazprom

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CNG world market – nations in the lead

Iran 2,070,000

Argentina 2,031,000

Pakistan 2,250,100

Russian Federation:– 20th place in the world;

– 4th place in Europe;– 4th place in the former Soviet Union.

Russia 86,000

…………………………

Vehicle fleet running on natural gas in the leading countries

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CNG market in Russia

525

473

394

280

139

10380 69 58 62

82101114

139173

237

286310

334330346

362

19

90

19

91

19

92

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93

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95

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CN

G s

ales

in R

ussi

a, m

illio

n m

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Russia / including Gazprom: Number of CNG stations: 242 / 207

CNG sales: 361.6 million m3 / 317 million m3Number of CNG vehicles: 86,000 / 4.5 thousand

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Source: Official website of the Federal State Statistics Service (www.gks.ru)

Comparative growth in cargo traffic tariffs

 

 

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A set of stimulation measures

Road traffic procedures, simplification of permit documentation issues, quota arrangement. 

Granting tax benefits, exemption from payments and fees, credit subsidization, grants payment. 

Design standards, technical regulation rules, inspection procedure exemption, harmonization of normative and technical documentation.

 Organization

Technology

Finance

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Federal Law No. 261 “On Energy Conservation and Improving Energy Efficiency...” dated November 23, 2009

Tightening of requirements, mainly environmental, to motor fuels.

Positive dynamics of prices for natural gas motor fuel.

Factors for a successful development of the gas motor fuel market

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Dynamics of gas motor fuel prices

Prerequisites for successful development of the gas motor fuel market (continued)

XII 1999

XII 2000

XII 2001

XII 2002

XII 2003

XII 2004

XII 2005

XII 2006

XII 2007

VI 2008

XII 2008

VI 2009

XII 2009

VI 2010

XII 2010

XII 2011

0.0р.2.0р.4.0р.6.0р.8.0р.

10.0р.12.0р.14.0р.16.0р.18.0р.20.0р.22.0р.24.0р.26.0р.28.0р.30.0р.32.0р.34.0р.

8.90

33.00

7.90

29.80

6.805.905.50

26.70

1.40

22.62

2.80

9.50

А-98 А-95 А-93 А-80 Diesel fuel LPG (equiv.) CNG

Transport running on natural gas

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Government subsidies to regions transferring bus fleet to natural gas.

Availability of a wide range of cars and buses with gas engines.

Elaboration of programs of federal regions of Russia on transfer of vehicles to natural gas (Moscow, Stavropol Krai, Sverdlovsk Oblast, Tambov Oblast, Kaluga Oblast, Saratov Oblast, Republic of Tatarstan).

Increase in the number of regions that are witnessing growth in the use of gas motor fuels.

Availability of equipment that allows to convert LNG to CNG.

Prerequisites for successful development of the motor fuel market

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Natural gas and the railways

The GT-1 long-haul gas turbine locomotive was created in 2008as part of the Program on setting up test operation ofliquefied and compressed natural gas poweredlocomotives at the Sverdlovsk railway test grounds

Total output of gas turbine engine – 8,300 kW

Fuel – LNGFuel capacity – 17 tons

Cruising range – 1,000 km

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1. Setting targets for gas motor fuel use in public transportation.

2. Development of a set of measures aimed at creating, expanding and modernizing the infrastructure.

3. Development of legal framework.

4. Improving efficiency of the national coordinating body.

Main areas of activities

430

300

60 50

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58

0

50

100

150

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250

300

350

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450

Total consumption in transport in Europe

Automobile transport Shipping Aviation Rail transport LNG imports to Europemill

ion

tons

of o

il eq

uiva

lent

.

All existing volumes of LNG imports to Europe (2011) is not

even enough to fully replace conventional fuels only for ships

with natural gas

Sources: Eurostat, Pace Global

Transport sector is the most promising and rapidly growing segment of the European gas market

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Gazprom sells Russian natural gas in Europe: CNG + LNG as a gas motor fuel

Gazprom 200+ CNG stations in Russia

Expansion of CNG refueling infrastructure is also being carried out in remote regions of Russia

Development of production and retail infrastructure to promote the sales of LNG as a motor fuel

Gazprom Group intends to expand its presence in the CNG market, building additional gas stations in Germany by the end of 2014, and also in Czech Republic by the end of 2013 (from 4 to 15) and so on

Gazprom Group is planning to develop the LNG market in Europe's transport sector, and also enter the bunkering market in the Baltic and in the North Sea region

Russ

iaEu

rope

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Kaliningrad

Kingisepp

Samsun

LNG markets

Bunkering markets

South Stream

LNG bunkering in the North Sea

NW-E-ClusterCNG/LNG

SW-E-ClusterCNG/LNG

SE-E-ClusterCNG/ LNG

LNG bunkering in the Mediterranean Sea

LNG b

unke

ring

in

the

Baltic S

ea

NE-E-ClusterCNG / LNG

European market clusters in the areas of LNG and CNG

Sh

tokm

an L

NG

• Light-duty vehicles and passenger cars in the CNG segment

• Buses and regional distribution promote an increase in the use of CNG, and also will be introduced into the LNG market

• Trans-border deliveries by heavy-duty vehicles and ship bunkering segment promote LNG market growth

Pskov

Vyborg

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Gazprom: strategy to enter gas motor fuel market in Europe

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In January 2012, the Board of Directors of Gazprom took a strategic decision to develop export shipment of small-capacity LNG and to participate in CNG projects abroad to increase Gazprom's share in the global gas market.

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Thank you for your attention!