The head of "Gazprom gas fuel" and said the methane should not be worth at the pump more expensive ₽16,5 per cubic meter

23 January 2019

CEO of PJSC "Gazprom" Viktor Zubkov spoke about the current situation and prospects of the Russian natural gas fuel market by 2030

In an exclusive interview given last week to the channel tv.rbc.ru Chairman of the Board of Directors of Gazprom and General Director of OOO "Gazprom gas fuel" Viktor Zubkov it was about the situation in the market of motor fuel and its development prospects in Russia until 2025.
  
According to him the theme of motor fuel in recent years has gained worldwide importance. Many countries in recent years actively engaged in the transfer of both land and sea and rail transport to natural gas. The win here is that, first, the gas fuel is cheaper, and secondly, it is an environmentally friendly fuel. We in Russia, "Gazprom" began to engage this topic four years ago, created the company "Gazprom gas fuel" – the company started the construction of filling stations and not just gas stations, and modern gas-filling stations with a throughput of 500, 800 and 1000 vehicles per day.

In 2017 in Khimki near Moscow (street the left Bank) was built CNG filling station at 2000 cars per day 

Such stations anywhere in the world – a common practice in European countries is placing one of two gas pumps at conventional gas stations that sells gasoline and diesel fuel. We in our country have gone on this path because we have the developed network of gas pipelines with a total length of 172 thousand km, almost many regions of the gasified at 95-100%, so we can put CNG filling stations apart from the traditional gas stations that we do. We have built over the years about 80 new gas stations, as well as converted about hundreds of old gas stations of the GDR-ovskogo of production 1980s, implement the methane. Made them modern gas filling. We have the system of "Gazprom" 300 gas-filling stations. The country, by the way, not so much – 377 units and a fleet of cars that run on natural gas is about 150 thousand these are the numbers with which we are now beginning a large program for the future 2024-2030. and until 2040. This is consistent with the global trend to increase the transfer of transport to natural gas about the same time 2024-30 until 2040.
In this project we have established in country head office to deal with this problem is energy, which, together with other interested ministries and agencies is preparing for the government program for the development of NGV market. This program must be taken at the end of March this year. The program envisages the construction in the regions of gas filling stations natural gas production industry the required amount of transport, besides the establishment of several industries of the so-called "underhood" systems, because there are many who want to transfer their vehicles, e.g. with diesel gas – if this is done in an industrial environment, that it was safe. Well, still many aspects that need to be in this program provided, including technical expertise and so on. In order starting from 2019, the programme is working fully. The main issue here is the provision of financial resources. 

About the necessity of state support
I have focused on natural gas fuel for a long time and traveled a lot of countries that are now leaders in the on this subject, in particular China, the middle East, Europe (Italy, Germany and Austria) and everywhere there is no precedent that without government support, this topic has gone very actively. In all countries, if there is a state program and state support (subsidies), because, unfortunately, the cost of transport to gas fuel is higher than regular fuel. It happened not only in our country but globally and therefore countries compensate for the difference in price of transport on natural gas and traditional fuel. In preparing the programme supports infrastructure development of motor fuel in the amount of ₽175 billion for the period until 2030, including in 2019 is a little – ₽4 billion, but still this is a big deal, as even elementary calculation will allow this year to build hundreds of high-quality modern CNG and in the longer term to increase the network of filling stations up to 1.5 thousand. Therefore, the "Gazprom" is actively involved in the development of this program. In addition, we also allocated its own considerable corporate funding, about ₽10 billion will directly allocate "Gazprom". It is important that the process of introducing natural gas fuel will get support of regions. "Gazprom" already has agreements with many regions of Russia, and this year we have selected two regions as a pilot is in Rostov and Belgorod region. Which is organized so that after 3-5 years, for example, to show the entire nation what it is possible to have economic effect, environmental effect, if the whole work is built so specifically, objectively and clearly. For example, in Rostov-on-don we are not alone, but connected to the topic and also the local business structures and the authorities of the Rostov region, in short all interested parties, including the social block, industrial enterprises and small business that would like to participate in the construction of gas filling stations. We are ready to organize this collective work.

reference:

V. Zubkov in the first meeting (17.01.19) joint working group on implementation of the pilot project of accelerated development of motor market in the Rostov region 

  the pilot project in Rostov region is in accordance with the agreement signed in November 2018 Gazprom, RUSNANO and the Imperial Rostov region Road map. The project involves the construction until 2022 20 automotive CNG stations and the installation of eight modules for refueling with natural gas at filling stations. The result is gas network of Gazprom in the region, taking into account already existing 11 stations, will consist of 39 objects.

Map of gas pipelines of the Rostov region

It is planned that the Park of NGVs will rise to 55 thousand, which would bring the implementation of natural gas as a motor fuel in the region of 250 million m³ per year.

the Experience of "Gazprom"
Where Russia now can occur in a technological breakthrough in the future? Experts at the Gaidar forum this year just expressed that one of the priorities is to scale the translation of all types of transport (road, rail and sea) to natural gas, including compressed natural gas methane, and liquefied petroleum gas (propane-butane). Scientists estimate that if we go in the development of this issue at the planned pace, then by 2030 the country will be able to obtain a GDP growth of 1.5% and 100,000 jobs, as well as a significant gain for the environment, if we are to seriously address these issues. For example, data on "Gazprom", which works, by the way, 462 thousand people. So, five years ago we started an experiment for transfer of its corporate fleet, which amounted to more than 30 thousand natural gas. During these years, the gas was transferred 40% of the Park, so that's only due to the difference in the price of natural gas and traditional liquid fuel savings of the order of ₽3.7 billion and reduced emissions of harmful substances into the atmosphere at 100 000 tonnes. These are impressive figures.

is There a place in the market of motor fuel small players?
Of course, in the Rostov region and the Krasnodar and Stavropol edges have the interest of the privateers with whom we are negotiating. They are ready to build their own gas stations.

The issue of the buses LOTOSpowered by methane (compressed and liquefied) in 2018 mastered Chelny GK "Raritek"

We, i.e. "Gazprom" it is profitable for the full increase of natural gas sales, as only at the moment the company has idle capacity for the production and implementation of 100 billion cubic meters of natural gas, despite the fact that today the supply of natural gas as motor fuel amount to 680 billion cubic meters and we hope in the next 2-3 years to increase the volume of supplies and sales to 2 billion cubic meters, and by 2030 to increase this amount to 11-12 billion cubic meters of gas, which corresponds to the consumption of whole European countries. So that it is profitable to Gazprom in terms of creating real consumers in the country.

One of the largest CNG stations in the Moscow region (Balashikha) otkryla at the end of the 2018 TD "Neft'magistral'"

the situation with the cost of gas fuel in the country
Did rising prices for conventional liquid fuels (petrol and diesel) on the price increase to natural gas?
Still "Gazprom gas fuel" kept the price of methane at around ₽12-14 per cubic meter, but to my knowledge some filling to raise the price to a ₽16-18 per cubic meter.

The price of CNG at ₽of 16.5 per m³ is already a reality on the suburban CNG filling stations 

But my opinion is that in this difficult moment, do not bully the prices to natural gas when people are moving to gas just to save, take loans, converted their machines. Now it's time to hold the price at ₽16 per cubic meter. This is despite the fact that the prices of conventional fuels grow at a faster pace, according to the information I presented 10 years ago a litre of diesel fuel cost just ₽21, and today he is already ₽47 per liter and is committed to ₽50, and it is possible that it may be ₽50 per liter! Against this background, even if the gas we will sell at ₽18 per cubic meter it will still be a lot cheaper. In addition, the government has a full opportunity to adopt a new resolution on the restriction of prices for gas fuel, for example, not more than 50% of the retail price of diesel fuel, as it was in Soviet times, when it was decided that gas fuel cannot cost more than 50% of the price then the most common motor petrol A-76 (A-80). And the issue is closed.

Refueling with compressed methane – a complex technological operation, which it is best to trust a qualified filler

reference:
Production and sale of natural gas as a motor fuel is a strategic direction of OJSC "Gazprom". For systematic work on the development of NGV market created by a specialized company — OOO "Gazprom gas fuel".
Rostov oblast takes one of leading places among the Russian regions on volume of sales of natural gas as a motor fuel. In 2016 its sale through a network of filling stations "Gazprom" in the region amounted to 32.1 million m³, in 2017 — 33,4 million m³, in 2018 36.6 million m³. The level of loading of the CNG in 2018 amounted to 33% (average in Russia — 28%)..