In Russia the consumption of compressed natural gas (CNG) as fuel increases steadily. As a result, in 2020, CNG consumption is 1.1 billion cubic metres and the number of CNG filling stations totalled to 530 units. According to experts, consumption of CNG in the Russian Federation by 2035 can reach 9.4 billion cubic meters.
The main document defining the target indicators for the development of the CNG market in Russia is the “CNG Market Development” sub-programme of the state programme “Energy Development”.
The significant growth of the CNG market is facilitated by:
- significant natural gas reserves and a well-developed gas distribution network that ensures a constant and long-term fuel supply;
- the introduction into transport of energy-efficient fuel, including the conversion of passenger transport and specialised communal natural gas technology in cities with a population of over 100 thousand people;
- expanding the range of specialised natural gas technology and gas supply infrastructure;
- low price for CNG fuel compared to traditional fuels (on average 20 rubles per 1 cubic meter, which is 2.5–3 times cheaper than gasoline);
- Federal subsidies for transforming vehicles on to CNG – ensure the return to the owner of the car of 60% of the cost of installing gas equipment. In addition, “Газпром газомоторное топливо” will compensate its participant for a further 30% of the costs (thus, the total reduction reaches 90%);
- the presence of laws in many russian regions under which gas-powered vehicles became subject to a reduced transport charge, and in some regions it has been cancelled altogether.