Gazprom-AR2014

Performance Results
69
The successful implementation of the Programme will expand gas infrastructure coverage from
22% to 60%. Investments in the upgrade and construction of gas supply facilities will amount to
RUB 34bn over a period of three years.
Development of NGV fuel markets
Production and sales of compressed (CNG) and liquefied natural gas (LNG) as motor fuel is a
strategic line of Gazprom’s business. OOO Gazprom gazomotornoe toplivo is a special-purpose
company set up outside Russia to develop the gas motor fuel market in the Russian Federation.
Targets were determined for the development of the NGV fuel market, which Gazprom intends to
achieve by focusing on the following key areas:
— coordinated interaction with federal authorities to create a relevant legal framework to encourage
the development of the NGV fuel market;
— NGV infrastructure expansion;
— development and implementation of incentives to boost demand for natural gas as motor fuel.
Ten priority regions were selected for the systematic expansion of the LNG and CNG production
and distribution infrastructure from 2015 through 2017: the cities of Moscow and St. Petersburg;
the Moscow, Leningrad, Rostov and Sverdlovsk Regions; the Krasnodar and Stavropol Territories;
the Republics of Tatarstan and Bashkortostan.
Agreements were signed with 35 Russian regions to promote the use of natural gas as motor
fuel. In cooperation with regional authorities, the Group is planning the locations and technical
profile of first-priority production and distribution facilities offering the highest potential.
Gazprom Group owns and operates 205 CNG filling stations in Russia. Throughout 2014,
404.8 mmcm of natural gas were sold as motor fuel, a 28 mmcm (7.4%) growth y-o-y. CNG sales
are estimated to grow 10% at the 2015 year-end.
Gazprom Group is also consolidating its NGV assets within the structure of OOO Gazprom
gazomotornoe toplivo.
Marketing activities in 2014 to promote the use of natural gas as motor fuel in the European and Russian markets
— Cooperation began with 54 NGV process equipment manufacturers and 7 agreements of intent were signed.
— 2,170 natural gas-fired vehicles were delivered to the Russian market.
— The EcoGas fuel trademark was designed and filed for registration.
— The Blue Corridor 2014: Baltic — Adriatic motor rally was held, during which vehicles covered 6.5 thousand km across
17 countries, using only natural gas as fuel.
— Volkswagen Scirocco R-Cup race for CNG-fuelled cars was held. All cars participating in the race sported
OAO Gazprom’s logos. A section of the racing cup took place in Moscow.
Gazprom operates in the LNG and CNG motor fuel segments of the German, Czech and
Polish markets through its subsidiary Gazprom Germania GmbH. In 2014, the number of CNG
filling stations operated by Gazprom Group’s subsidiaries in those countries increased to 30. The
construction of a fixed LNG filling station was completed in Olsztyn, Poland. Another station is
under construction in Warsaw. Five stations were owned by Gazprom’s affiliate Vemex s.r.o. (the
Czech Republic). Plans are also being made to develop the NGV fuel market in Bulgaria.
Gazprom Group was also active in the NGV fuel segment in Vietnam, where a joint venture
registration is being finalized, PV Gazprom Natural Gas for Vehicles. It is a third Russian-Vietnamese
joint venture with Gazprom’s membership, which testifies to the rapid expansion of Russian-
Vietnamese strategic partnership and confirms the implementation of arrangements for using
natural gas as motor fuel, which also provide for a switchover of the public transport of the city
of Ho Chi Minh to NGV fuel.
To promote natural gas as motor fuel in global markets, Gazprom made arrangements for the
development of NGV fuel markets in the FSU countries (the Republics of Belarus, Kazakhstan,
Kyrgyzstan).
OAO Gazprom Annual Report 2014