Novatek Eyes Extra LNG Vehicle Sales in Russia

Russian gas producer Novatek signed a co-operation pact with the country’s oil pipeline operator Transneft, covering the possible sale of LNG to the company as fuel for its cargo truck fleet.

Under the agreement, Transneft has also stated its intent to replace old diesel-powered trucks with new gas-fuelled vehicles.

“This agreement is consistent with Novatek’s strategy to expand the use of LNG as a motor fuel and to develop the necessary refuelling infrastructure,” Novatek’s deputy chairman Lev Feodosyev said. “Switching to LNG in road transportation can significantly reduce harmful emissions into the atmosphere, as well as achieve a lower overall cost to consumers compared to diesel fuel.”

Novatek wants to develop the market for LNG as a vehicle fuel, as a future channel for gas sales both in Russia and overseas. It sells LNG at many of its more than 70 filling stations in Russia, and recently launched its first LNG filling station in Europe, in the German coastal town of Rostock. Gazprom is also working on developing demand for compressed or liquefied gas as a fuel for heavy and light transport.