April 23, 2024. The Gazprom Board of Directors took note of the information about the prospects for the NGV fuel market development in the Russian Federation, including in the agro-industrial complex, and about the company’s performance in 2023.
It was noted that, today, a competitive NGV fuel market has already been created in Russia and the required conditions have been provided for converting vehicles and machines to natural gas, the most eco-friendly and cost-efficient fuel. Gazprom, as key producer of natural gas in Russia, plays a major role in the NGV fuel market development.
Taking into account the refueling infrastructure already created and the extensive work on gas infrastructure expansion being carried out by Gazprom in Russian regions, it is agricultural machinery that emerges as a promising direction in which the use of natural gas as a vehicle fuel can further develop.
With assistance from Gazprom, agricultural machinery manufacturers produced their first natural gas-powered prototypes of tractors and a combine. One of those prototypes, an LNG-powered row crop tractor, was displayed for the first time last year at the St. Petersburg International Gas Forum.
In 2023, the Agreement of Cooperation was signed between Gazprom and the Ministry of Agriculture of the Russian Federation. In terms of its implementation, the parties have identified the need for NGVs intended for the transportation of agricultural products that is going to be observed among agricultural enterprises throughout 2024. To partially compensate agricultural producers for purchasing these NGVs, the Ministry of Agriculture of the Russian Federation is currently looking into the possibility of introducing subsidies in this regard.
In 2024, the parties will shape the program for enterprises of the agro-industrial complex to purchase agricultural vehicles and grain drying equipment and convert them to natural gas.
Other promising areas where natural gas can be used as a vehicle fuel include quarry machinery for the mining sector, as well as railway and waterborne transport.
It was noted that further comprehensive development of the market will be facilitated by the approval of the Concept for the NGV fuel market development in Russia up to 2035, which has been developed by the Ministry of Energy of the Russian Federation with the participation of Gazprom.
