Natural gas motor fuel: will the balance on the domestic market really change?

At the moment there are good prospects for development of the natural gas motor fuel in Russia.

Difficulties with expansion of gas exports raise the question about promotion of gas consumption on the domestic market, particularly given that oil companies promise to increase their natural gas output. If the domestic demand for natural gas is not elevated, the oversupply of natural gas may become an unexpected and serious problem.

Switching motor vehicles to a cheaper type of fuel may give an impetus to development of the economy through reduced costs of commodities and advance in buying activity.

Moreover, it will provide for additional quantities of oil available for exports, as domestic oil production has reached its peak and in the near future it will start easing back.

It is clear that development of the natural gas motor fuel market requires investments: it is necessary to create the fueling infrastructure, manufacture natural gas vehicles or actively transfer existing vehicles to natural gas.

The report elaborates on the following issues:

• The condition of the fleet of motor vehicles in Russia

  • The fuel market structure

• Peculiarities of the natural gas motor fuel

  • Main types, advantages and disadvantages

• Economy of using the natural gas motor fuel

  • Costs of using the NG motor fuel compared to petrol and diesel fuel
  • Costs of transfer of motor vehicles to NGMF

• The past and the present of NGMF

  • The history of NGMF introduction in Russia
  • The current condition of the NGMF market

• State support to NGMF development

  • The program of transfer of public transport to natural gas; provision of subsidies to buying NG powered buses and municipal service vehicles
  • Is support of state authorities efficient and sufficient?

• The program of building NG fueling stations. Who will benefit?

  • Officials responsible for NGMF development; the position of regulators

• Main beneficiaries of NGMF development in the country. Efficiency of their efforts on developing NGMF

• Medium-term forecast of developments: pros and cons of the NGMF boom in Russia

Contents of the report: