Lack of NGV Law Hampering Progress - Gazprom

Gazprom, the huge Russian gas provider, says lack of legislation for gas-powered transport is delaying such a changeover in the Federation.

The state company has asked President Putin to order all ministries to assess measures for  conversion of transportation to natural gas, and says directions to this effect have been given.

The Natural and bioGas Vehicle Association Europe reports that  Gazprom representatives told the association that the lack of a federal law setting out measures for the conversion of motor transport to gas, is a major obstacle to domestic natural gas vehicle (NGV) fuel market development.

Out of a global fleet estimated at 15 million NG vehicles, Russia, with a population of 143 million, has 86,000 units at current estimates.

Gazprom has decided on including a special section concerning motor transport conversion to gas into the Russian Regions Gasification Program, beginning next year. The NGVA noted that one of Gazprom’s main objectives in the domestic market is to considerably expand the NGV fuel business.

The board of directors charged Gazprom'sm management committee with continuing work on expanding the use of natural gas as a motor fuel in Russia, in cooperation with state authorities. The Management Committee was also tasked to continue work on expanding the use of natural gas as a motor fuel abroad. Gazprom's board is due to receive a progress report in the first quarter of 2013.

According to the NGVA, natural gas use as a motor fuel is rapidly expanding around the world, with 80 countries now using NGVs. There is an annual global increase in gas-powered vehicle fleet of around 26%. The world's leading vehicle producers turn out more than 80 models of gas-powered cars.