Viktor Zubkov, Chairman of the Gazprom Board of Directors held a number of working meetings to address the NGV fuel market evolution in Russia. The meeting was comprised of top managers from Russian and foreign companies specializing in motor vehicle equipment, CNG filling stations components, road transportation, NGV fuel production and sales: KAMAZ, RariTEK, GAZ Group, Volgabus, AvtoVAZ, Stork, Gazprom Export, Gazprom Germania , MAN Truck & Bus Rus, BAUER COMP, Iveco Russia. Attending the meetings was Vitaly Markelov, Deputy Chairman of the Gazprom Management Committee.

The participants shared information on gas-powered vehicles and special machinery production and measures to boost its development, organization of maintenance, the state of regional NGV infrastructure and measures for its expansion, as well as addressed proposals on updating the relevant regulatory system.

Viktor Zubkov highlighted that today's main objective was to unify the dispersed efforts on Russian motor vehicles conversion to natural gas, harmonize the work being done by carmakers, gas producers and Russian constituents, as well as to introduce the required amendments into the regulatory framework.

The key role here will be played by a recently set up company – Gazprom Gazomotornoye Toplivo which is the single operator of Gazprom in this area. The company will consolidate all the core NGV fuel production and sales assets.

Viktor Zubkov stressed that in 2013 Gazprom included pilot projects for CNG filling stations construction and motor vehicles conversion to natural gas into the Russian Regions Gasification Program. The pilot projects will be carried out in regions already having the experience of motor vehicles conversion to natural gas and the required financial and economic conditions. He also defined the main target groups where to convert vehicles to natural gas: public motor transport, housing and utilities sector, agroindustrial enterprises, small and medium-sized businesses. Replacement of conventional fuels in these segments will allow avoiding the tariff growth in public motor transport, reducing the prime cost of agroindustrial products, saving vehicle maintenance related costs and improving the ecological situation.

The participants agreed to hold regular topical meetings in a number of regions chosen as venues of pilot projects for motor vehicles conversion to natural gas. The first meeting is to take place in Kazan on February 27.

Background

In 2012 Gazprom stepped up its efforts on developing the regional NGV fuel markets. Proposals on joint development of the NGV infrastructure were sent to 69 Russian constituents participating in the Gasification Program. By now, 10 regions have made up a list of pilot investment projects on CNG filling stations construction, developed feasibility studies and adopted decisions to start the construction as early as in 2013. Six regions have made up a list of pilot investment projects and are finishing feasibility studies. 23 regions are engaged in determining the locations of future GNG filling stations.