Gazprom continues large-scale efforts to develop Russia’s NGV market, the Russian gas producer announced in December 2016.

In particular, Gazprom develops its CNG filling network, purchases gas-powered vehicles, collaborates with major motor manufacturers on issues regarding the production of gas-fueled cars, and interacts with authorities on issues regarding the support for the NGV sector.

As of early 2016, there were over 270 CNG stations in operation across Russia, with 209 owned by Gazprom. This year, the company put into operation 19 new stations, with other 16 stations to be built and four stations to be reconstructed by the year’s end. Thus, the company will add 35 more units to its CNG filling network in 2016, bringing the number of stations to 244.

Gas sales at Gazprom’s CNG stations have consistently increased, amounting to 436 million cubic meters in 2015, which is 7.3 percent higher than in 2014. The sales growth rate is expected to exceed 17 percent in 2016, the company announced.

Gazprom collaborates with domestic car manufacturers on issues regarding expanding the NGV sector and increasing the purchases of gas-fueled cars. Thanks to joint efforts, there is a steady growth in the number of gas-powered vehicles across Russia.

The Gazprom Group implements a program for gas conversion of corporate vehicles. The current share of NGVs in the Group’s vehicle fleet is 26 percent. The company plans to expand that share greatly in the medium term. The program has generated significant economic benefits: Gazprom saved a total of RUB1.3 billion (USD20 million) over the period from 2014 through October 2016 as a result of substituting liquefied vehicle fuel for gas fuel.

Gazprom promotes the use of natural gas as a vehicle fuel under the brand name EcoGas and implements marketing programs aimed at motivating consumers to convert their vehicles to run on natural gas.

Gazprom makes efforts aimed at creating the infrastructure to produce and use liquefied natural gas (LNG) as a vehicle fuel. The company has adopted a program for small-scale LNG production and use. Gazprom continues to cooperate with the Russian Railways in promoting the wider use of natural gas in rail transportation.

The Russian gas giant maintains contacts with government authorities to improve the legal framework to facilitate domestic NGV market development.

The Gazprom management committee was instructed to continue the efforts aimed at developing Russia’s NGV market.

Gazprom is the world’s biggest gas company. Its authorized capital is RUB118.367 billion (USD1.95 billion) and consists of 23,673,512,900 common shares of stock with a face value of five roubles. The Russian Federation is Gazprom’s controlling shareholder.

The IFRS net profits of Gazprom to be distributed among the company’s shareholders in the first half of 2016 decreased 10 percent to RUB607.16 billion (USD10.01 billion). Sales revenues, net of VAT and custom duties, increased by five percent to RUB3.064 trillion (USD50 billion). The sales revenue growth was mainly driven by an increase in gas sales to Europe and other countries.