Gazprom to Expand Gas Use in St Petersburg Transport

Gazprom has signed an agreement with Russia's industry ministry, the St Petersburg city administration and Russian engine manufacturer Kamaz to expand the role of gas in St Petersburg's transport sector.

The parties have agreed to work together to phase in natural gas as a fuel for automobiles, municipal vehicles and water passenger transport between 2021 and 2023, in order to improve air quality, Gazprom said on March 15. Gazprom plans to expand the number of facilities in its compressed natural gas (CNG) filling network from 10 to 25 by 2024, and wants to create a network for LNG-fuelled road and water transport. The company will also consider fixing the cost of CNG at 50% of the cost of diesel until the end of 2030, in order to make it more competitive.

The St Petersburg administration, meanwhile, plans to increase the number of municipal vehicles that run on gas, and take steps to encourage more commercial and privately-owned vehicles to switch to the fuel as well. It will also file proposals with Russia's transport ministry to simplify the procedure for approving and registering the conversion of ships to LNG, and provide support measures for enterprises that want to use the fuel for water transport.

Kamaz will produce gas-fired automobiles and municipal vehicles to meet the city's needs, and organise training on the operation, maintenance and repair of natural gas vehicle (NGV) equipment. The industry ministry will draw up state support measures, including subsidies, for developers and manufacturers of NGVs and gas-fuelled vessels, and for enterprises purchasing them or converting existing models.