1. Gazprom:
Gas Motor Fuel Market
in Russia and Globally
Oleg Aksyutin
Head of Gas Transportation, Underground Storage and
Utilization Department, Gazprom
1

2. CNG world market – nations in the lead
Vehicle fleet running on natural gas
in the leading countries
Pakistan 2,250,100
Iran 2,070,000
Argentina 2,031,000
…………………………
Russia 86,000
Russian Federation:
– 20th place in the world;
– 4th place in Europe;
– 4th place in the former Soviet Union.
2

3. CNG market in Russia
525 Russia / including Gazprom:
473 Number of CNG stations: 242 / 207
CNG sales: 361.6 million m3 / 317 million m3
394 Number of CNG vehicles: 86,000 / 4.5 thousand
CNG sales in Russia, million m3
362
334 330 346
310
280 286
237
173
139 139
103 114
101
80 69 82
58 62
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
3

4. Comparative growth in cargo traffic tariffs
Source: Official website of the Federal State Statistics Service (www.gks.ru)
4

5. A set of stimulation measures
Organization Road traffic procedures, simplification of permit
documentation issues, quota arrangement.
Technology Granting tax benefits, exemption from payments
and fees, credit subsidization, grants payment.
Finance Design standards, technical regulation rules,
inspection procedure exemption, harmonization
of normative and technical documentation.
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6. Factors for a successful development
of the gas motor fuel market
Federal Law No. 261 “On Energy Conservation and Improving
Energy Efficiency...” dated November 23, 2009
Tightening of requirements, mainly environmental, to motor fuels.
Positive dynamics of prices for natural gas motor fuel.
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7. Prerequisites for successful development
of the gas motor fuel market (continued)
Dynamics of gas motor fuel prices
34.0р.
33.00
32.0р.
30.0р. 29.80
28.0р.
26.0р. 26.70
24.0р.
22.0р. 22.62
20.0р.
18.0р.
16.0р.
14.0р.
12.0р.
10.0р. 8.90 9.50
8.0р. 7.90
6.80
6.0р. 5.90
5.50
4.0р. 2.80
2.0р. 1.40
0.0р.
XII XII XII XII XII XII XII XII XII VI XII VI XII VI XII XII
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2008 2009 2009 2010 2010 2011
А-98 А-95 А-93 А-80 Diesel fuel LPG (equiv.) CNG
7 Transport running on natural gas

8. Prerequisites for successful development
of the motor fuel market
Government subsidies to regions transferring bus fleet to natural gas.
Availability of a wide range of cars and buses with gas engines.
Elaboration of programs of federal regions of Russia on transfer of vehicles
to natural gas (Moscow, Stavropol Krai, Sverdlovsk Oblast, Tambov
Oblast, Kaluga Oblast, Saratov Oblast, Republic of Tatarstan).
Increase in the number of regions that are witnessing growth in the use of
gas motor fuels.
Availability of equipment that allows to convert LNG to CNG.
8

9. Natural gas and the railways
Total output
of gas turbine
engine – 8,300 kW
Fuel – LNG
Fuel capacity – 17 tons
Cruising range – 1,000 km
The GT-1 long-haul gas turbine locomotive was created in 2008
as part of the Program on setting up test operation of
liquefied and compressed natural gas powered
locomotives at the Sverdlovsk railway test grounds
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10. Main areas of activities
1. Setting targets for gas motor fuel use in public
transportation.
2. Development of a set of measures aimed at
creating, expanding and modernizing the infrastructure.
3. Development of legal framework.
4. Improving efficiency of the national coordinating body.
10

11. Transport sector is the most promising and
rapidly growing segment of the European gas market
450 430
400
350
300
300
million tons of oil equivalent.
250
200
All existing volumes of LNG imports to Europe (2011) is not
150 even enough to fully replace conventional fuels only for ships
with natural gas
100
60 50 58
50
7
0
Total consumption in Automobile transport Shipping Aviation Rail transport LNG imports to Europe
transport in Europe
Sources: Eurostat, Pace Global
11

12. Gazprom sells Russian natural gas in Europe:
CNG + LNG as a gas motor fuel
 Gazprom 200+ CNG stations in Russia
 Expansion of CNG refueling infrastructure is also being carried
Russia
out in remote regions of Russia
 Development of production and retail infrastructure to promote
the sales of LNG as a motor fuel
 Gazprom Group intends to expand its presence in the CNG
market, building additional gas stations in Germany by the end
of 2014, and also in Czech Republic by the end of 2013 (from
Europe
4 to 15)  and so on
 Gazprom Group is planning to develop the LNG market in
Europe's transport sector, and also enter the bunkering market
in the Baltic and in the North Sea region
12

13. European market clusters
in the areas of LNG and CNG
• Light-duty vehicles and
passenger cars in the CNG
segment
• Buses and regional Vyborg
distribution promote an Kingisepp
increase in the use of Pskov
CNG, and also will be
introduced into the LNG
Kaliningrad
market
• Trans-border deliveries by
NE-E-Cluster
heavy-duty vehicles and ship NW-E-Cluster
CNG / LNG
CNG/LNG
bunkering segment promote
LNG market growth
SE-E-Cluster
CNG/ LNG
SW-E-Cluster
LNG markets
CNG/LNG South Stream
Samsun
Bunkering markets
LNG bunkering in the Mediterranean Sea
13

14. Gazprom:
strategy to enter gas motor fuel market in Europe
In January 2012, the Board of Directors of Gazprom took a
strategic decision to develop export shipment of small-
capacity LNG and to participate in CNG projects abroad to
increase Gazprom's share in the global gas market.
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15. Thank you for your attention!
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