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    Rosneft Strikes Deal to Supply Gas to Moscow Region

Summary

The Moscow region is the biggest consumer of gas in Russia.

by: Joseph Murphy

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Rosneft Strikes Deal to Supply Gas to Moscow Region

Russia's Rosneft has signed a deal to deliver 13.4bn m3 of gas to Mosoblgazpostavka, one of the largest gas suppliers in the Moscow region, over a six-year period beginning in 2021, it said on August 19.

The agreement was signed during a meeting between Rosneft CEO Igor Sechin and the Moscow region's governor Andrey Vorobyov. Rosneft said the new contract would ensure reliable gas supply to the region at stable prices, expanding its market share there to 11%. The gas will be sourced from its projects in the Yamalo-Nenets region of Western Siberia. 

The Moscow region surrounding the Moscow city area is the biggest consumer of gas in Russia. Mosoblgazpostavka's customers range from small to large businesses.

Sechin and Vorobyov also discussed the development of natural gas vehicle (NGV) infrastructure, according to Rosneft. The company plans to build four NGV filling stations in the region, it said, without specifying a timeframe for their completion.

The Russian government, in partnership with Gazprom, recently approved a subsidy programme to support vehicle owners that want to switch to gas fuel, to spur the market's development.