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    Gazprom to Provide NGV Subsidies


Conversion costs will be shared between Gazprom and regional authorities.

by: Joseph Murphy

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Gazprom to Provide NGV Subsidies

Russia's Gazprom has approved a programme to support vehicle owners that want to switch to natural gas fuel, its Gazprom Gas-Engine Fuel subsidiary said on July 22.

Aside from the environmental benefits of switching from diesel, Gazprom also has commercial reasons for expanding gas demand in Russia. Its gas exports have proved a disappointment this year and the long-term outlook is not bright.

Russian regions participating in the programme have agreed to cover two thirds of the cost of converting vehicles to run on gas, whereas 30% of the cost will be borne by Gazprom. Businesses and entrepreneurs will also be able to secure a 10% discount on a limited supply of gas fuel for one year.

Russia's government aims to expand the market for compressed natural gas (CNG) as a vehicle fuel to 2.7bn m3/yr by 2024. The country has a network of 484 CNG filling stations, of which 329 belong to Gazprom. The company sold over 779mn m3 of gas last year and expects growth in 2020 despite the impact of the coronavirus (Covid-19) pandemic.

Gazprom is also looking to build the market for CNG and LNG as vehicle fuels in Europe.