Documents Signed to Develop Russia’s NGV Market

Source: www.gulfoilandgas.com 6/17/2022, Location: Asia

A number of documents for a wider use of natural gas as a vehicle fuel in Russian regions were signed at the St. Petersburg International Economic Forum 2022.

Alexey Miller and Andrey Bocharov, Governor of the Volgograd Region, signed a Memorandum of Intent to implement a project for developing comprehensive infrastructure for the production, storage, transportation and consumption of liquefied natural gas (LNG) in the Volgograd Region.

The purpose of the Memorandum is to create additional favorable conditions for the construction of a small-scale LNG production complex with an hourly capacity of 1.5 tons in the Bykovsky District. The project is implemented by Gazprom Helium Service.

Pursuant to the document, the regional authorities will identify the needs for the procurement of vehicles powered by LNG and devise incentive measures for carrier companies. Gazprom will draw up a plan on the expansion of gas filling infrastructure and determine their locations taking into account the routes of LNG-powered transport. The list of specific activities, target indicators and project implementation timelines will be enshrined by the parties in the relevant synchronization plan.

The Memorandum was signed as a follow-up to the quadripartite Agreement of Cooperation inked in 2021.

Bilateral agreements on a wider use of natural gas as a vehicle fuel between the Company and regional authorities were signed by Alexey Miller with Igor Babushkin, Governor of the Astrakhan Region, Sergey Melikov, Head of the Republic of Dagestan, and Dmitry Artyukhov, Governor of the Yamal-Nenets Autonomous Area (YaNAA).

The Agreement with the Astrakhan Region was concluded to replace the expired document and is valid until 2030. The Agreements with the Republic of Dagestan and the YaNAA are open-ended and were signed to update the effective Agreements.

The parties intend to intensify their efforts on developing regional NGV fuel markets. The regions will focus on creating the conditions required for a wider use of natural gas in municipal motor vehicles and machinery, while Gazprom will explore the ways of further expanding the gas filling infrastructure.

At present, three CNG filling stations of Gazprom are functioning in the Astrakhan Region, two in Dagestan, and two in the YaNAA.


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