RUSNANO, Gazprom and Government of Belgorod Region Discuss Development of Region’s Gas Engine Fuel Infrastructure

04 February 2019

Dmitry Pimkin, RUSNANO Management Company’s Senior Managing Director for Investment Activities has taken part in a meeting discussing the development of the gas engine fuel market in Belgorod Region. The event was held on February 1, as part of a business trip to the region by Victor Zubkov, Chairman of the Board of Directors of Gazprom OJSC. Other persons participating in the meeting included Igor Shchyogolev, Authorised Representative of the President of the Russian Federation for the Central Federal Region, Anton Inyutsyn, Deputy Minister of Energy of the Russian Federation, Dmitry Sergeev, Deputy Minister of Agriculture of the Russian Federation, Evgeny Savchenko, Governor of Belgorod Region, and Vladimir Mau, Rector of the Russian Academy of National Economy and Public Administration.

In the meeting the participants discussed the possibility of Gazprom Gas-Engine Fuel LLC and RUSNANO cooperating on the development of infrastructure to increase the usage of natural gas as a vehicle fuel in Belgorod Region. Among other things, the project involves the construction of filling stations supplying pressurised natural gas in Belgorod Region. As the market for gas engine fuel develops, the parties may also consider other projects, including localising the manufacture of equipment for filling stations and of gas-fuelled vehicles.

One result of the meeting was the signing of a plan setting out steps to implement a pilot project, Development of the Gas Engine Fuel Market in Belgorod Region, which will run from 2019 until 2021. Among other actions, the plan calls for the number of specialised filling stations supplying compressed natural gas to be increased from 8 to 39. It is estimated that this will cause annual demand for compressed natural gas to increase to 200 mln cubic metres a year.

Gas Engine Fuel Infrastructure

Dmitry Pimkin, RUSNANO Management Company’s Senior Managing Director for Investment Activities: “The Russian gas engine fuel market is growing at a rate of 12.5% a year, and all the conditions for rapid development are present, including the fact that Russia has the largest natural gas reserves in the world. In order to achieve this we need to consolidate appropriate investors and financial institutions. RUSNANO, with its unrivalled experience in investing in technology projects, is ready to participate in the initial stages of creating a network of natural gas filling stations that comply with the highest safety standards for the storage and transport of this ’blue’ fuel. There is a lot of traffic on the main transport routes connecting Belgorod Region, and we are confident that there is sure to be a high demand for compressed natural gas, which is a more economical and environmentally friendly fuel.”

Victor Zubkov, Chairman of the Board of Directors of Gazprom OJSC: “The use of natural gas for transport is a goal of great importance at a state level. Every sector that depends on fuel to any significant extent will enjoy important economic benefits from using gas. Following the project in Rostov Region we have launched a pilot project for the intensive development of the gas engine fuel market in Belgorod Region. We are confident that by 2022 the annual demand for gas engine fuel in Belgorod Region will reach 200 mln cubic metres. Most importantly, that will allow businesses to save money on fuel, as gas is cheaper, and it will dramatically reduce the harmful impact of transport on the environment.”

Evgeny Savchenko, Governor of Belgorod Region: “The implementation of this project to convert regional transport to gas engine fuel is of great interest to our company. By using natural gas, it is possible to halve one’s fuel costs. According to preliminary studies, carrying out this project in our region will enable savings of some RUB 5 bln a year, which will do a great deal to promote the development of the regional economy. Secondly, it will have an environmental benefit, and result in healthier living conditions. It will reduce emissions of harmful chemicals into the environment to a fraction of their current level, and it will also reduce noise pollution. And thirdly, the switch to gas engine fuel at a time when liquid fuel prices are increasing will make it possible to minimise increases in public transport fares and utility bills, and this will have a positive effect on standards of living and on people’s social welfare.”

The pilot scheme in Belgorod Region will be the second such project to be carried out as part of the partnership between Gazprom and RUSNANO. In November 2018 Gazprom Gas-Engine Fuel LLC, RUSNANO and Rostov Region signed a plan setting out steps to implement a pilot project, Development of the Gas Engine Fuel Market in Rostov Region, to run from 2018 until 2021. Among other things, under the plan the number of vehicles using natural gas as fuel will increase to 55,000 units, and the network of specialized gas filling stations in the region will increase to 39 facilities.

Additional information

Reference

RUSNANO Joint-Stock Company was founded in March 2011 through reorganization of state corporation Russian Corporation of Nanotechnologies. JSC RUSNANO contributes to implementation of the state policy on the development of the nanotechnology industry by investing directly and through investment funds of nanotechnology in financially effective high-technology projects providing the development of new production facilities in the Russian Federation. Its primary investment focus is in electronics, optoelectronics and telecommunications, healthcare and biotechnology, metallurgy and metalwork, energy, mechanical engineering and instrument making, construction and industrial materials, chemicals and petrochemicals. 100 percent of RUSNANO’s shares are state owned. Thanks to RUSNANO’s investments, there are currently 97 factories and R&D Centers opened in 37 regions in Russia. JSC RUSNANO has profit for the last 4 years.

Management of assets of RUSNANO JSC is carried out by Limited Liability Company established in December 2013, RUSNANO Management Company. Anatoly Chubais is the Chairman of its Executive Board.

Work to establish nanotechnology infrastructure and carry out educational programs is fulfilled by RUSNANO’s Fund for Infrastructure and Educational Programs, which was also established during the reorganization of the Russian Corporation of Nanotechnologies.