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    Russia's Rosneft, Inter RAO partner in LNG, CNG


The market for natural gas as a vehicle fuel is dominated by Gazprom.

by: Joseph Murphy

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Natural Gas & LNG News, Europe, Liquefied Natural Gas (LNG), Corporate, Contracts and tenders, Gas for Transport, News By Country, Russia

Russia's Rosneft, Inter RAO partner in LNG, CNG

Russian oil company Rosneft has partnered with power supplier Inter RAO to produce and supply LNG and compressed natural gas (CNG) for use as motor fuels, the companies said on June 3.

The pair will assess whether it is technically feasible to produce LNG and look at the prospects for supplying it and CNG as a motor fuel at Rosneft's retail filling stations. Inter RAO is currently designing LNG production plants, and the partners are also drawing up plans to retrofit Rosneft's stations to serve the fuels.

Russia is eager to expand the use of CNG and LNG as vehicle fuels, for environmental reasons but also because of its lower cost compared with more conventional fuels, projecting that reduced transport costs will boost the competitiveness of Russian manufacturing. Sales of CNG as a vehicle fuel reached 1.1bn m3 in 2020, but are expected to reach 2.72bn m3 in 2024, according to Moscow-based Vygon Consulting.

Gazprom dominates the market, but Rosneft wants to offer LNG and CNG at its filling stations as well. CNG is seen as a good option for cars and light-cargo vehicles, whereas LNG is better suited for heavier vehicles.