Page 14 - FSUOGM Week 25

FSUOGM POLICY FSUOGM

Russia boosts subsidies for gas-

fuelled vehicles

RUSSIA THE Russian government has doubled subsidies entails the construction of almost 1,300 more
to pay for the cost of converting vehicles to run CNG filling stations over the next five years.
Russia wants to expand on compressed natural gas (CNG) instead of Gazprom is looking to develop CNG fuel
the market for CNG as gasoline, it said in an announcement on June 22. sales not just in Russia but also across Europe,
a vehicle fuel to 2.7 Under a decree signed by Russian Prime helping to offset weaker growth in its conven-
bcm annualy by 2024. Minister Mikhail Mishustin, the government tional gas sales on the continent. The company
will pay for up to 60% of the total cost of con- currently operates 47 CNG stations in Germany
verting a vehicle to gas, instead of 30% at pres- and a further 16 in the Czech Republic.
ent. This subsidy is on offer to both citizens and Earlier this month Gazprom announced
small- and medium-sized enterprises (SMEs). it had closed two CNG stations in the Czech
Additional support is provided by state gas firm Republic while expanding two others, in order
Gazprom. to optimise its business.
Russia wants to expand the market for CNG “The gas mobility in the Czech Republic
as a vehicle fuel to 2.7bn cubic metres annually is a clear success story with steadily growing
by 2024. The country currently has a network of sales volumes over the last 15 years and one
484 CNG filling stations, of which 329 belong to of the best CNG station networks in Europe,”
Gazprom. Gazprom sold 779.2mn cubic metres the firm’s branch manager for Czech gas
of CNG as vehicle fuel in 2019 and expects this transport, Tobias Jacobs, said in a statement.
amount to rise in 2020 despite the effects of the “Together with a continuous political support
coronavirus (COVID-19) pandemic. The com- – like the recently approved National Action
pany said last year it anticipated total vehicle Plan for Clean Mobility – and the attractive-
CNG sales to exceed 1 bcm in 2020. ness of gas vehicles especially for the envi-
Under its five-year plan, the government has ronmentally important public transport and
set aside RUB19.3bn ($280mn) in budget funds logistics, we see a big potential for CNG and
to support the sector’s development. The plan LNG in the Czech Republic.” ™

PROJECTS & COMPANIES

Sakhalin-2 project secures

licence extensions

RUSSIA THE Gazprom-led Sakhalin Energy consortium oil and gas in 1999, while Lunskoye was brought
has secured five-year licence extensions for its on stream in 2008. Sakhalin-2 was originally a
The licences were two fields off Russia’s Far East coast, it reported Shell-led venture, with Gazprom only joining the
first awarded in the on June 18. project in 2007.
mid-1990s. The fields, Piltun-Astokhskoye and Lun- Oil and gas from the fields is pumped ashore
skoye, together form the Sakhalin-2 project. and then dispatched to markets via tankers. The
Sakhalin Energy has been developing Sakhalin-2 gas is first liquefied at an 11mn tonne per year
since the mid-1990s under a production-shar- (tpy) LNG terminal.
ing agreement (PSA) – one of only a handful still Gazprom and its partners have been discuss-
active in Russia. ing for years adding a third train at the LNG
Sakhalin Energy, whose other investors terminal, with the company signing a memo-
include Royal Dutch Shell and Japan’s Mitsui and randum with Shell on the project in 2015. But
Mitsubishi, said the field licences were now valid despite Gazprom’s desire to build up its LNG
until May 2026. The PSA enables them to be business, the expansion has never progressed
extended by an additional five years until 2031. beyond the drawing board.
“The successful extension of the licences gives There have long been concerns about
us grounds to say that the company is doing its whether there is enough gas supply to justify
business openly and safely in compliance with all building a third train, and competition for the
commitments taken under the subsurface law,” Asia-Pacific market among suppliers is currently
Sakhalin Energy’s CEO Roman Dashkov stated. fierce. There was no mention of the third train in
The Piltun-Astokhskoye field began flowing Sakhalin Energy’s announcement. ™

P14 www. NEWSBASE .com Week 25 24•June•2020