We are falling behind with gas fueling stations infrastructure building

1 september 2016 | Rossiyskaya Gazeta

Transition to gas motor fuel is a slow process in transport industry. In the absence of adequate demand, the companies are reluctance to develop fueling stations infrastructure fearing low efficiency and high risks, and without that infrastructure, consumers are not making the transition to the new fuel. Alexander Amiragyan, Senior Adviser to the Department for Fuel and Energy Sector of the Analytical Center, commented on the situation in an interview to Rossiyskaya Gazeta.

Alexander Amiragyan
Alexander Amiragyan
Department for Fuel and Energy Sector

“The decision to make a partial transition of public transport to gas motor fuel has several main purposes,” Mr. Amiragyan says. “First, it will result in cost cuts for municipal traffic organizations due to lower prices for gas fuel as compared to diesel fuel, and it will also help the environment in large cities. Second, the commitment to transition public transport to gas fuel with specific targets for 2020 gives a degree of security to investors in automatic gas fillers that there will be demand for the products, for which they are building the infrastructure.

According to the expert, there was not a significant growth in the gas motor fuel market in 2014-2015, including the public transport sector. The reason for that is that the first large investments never came to fruition, particularly in the area of building automatic gas fillers. They started in 2014-2015, but their completion is planned for this and the following year.

“However, the targets for building gas fueling stations infrastructure and for purchasing compressed gas vehicles in 2015-2016 are not being met, which will have a negative effect on the development of the industry in the next few years. The main reason is financial difficulties experienced by businesses as well as the growing cost of the projects due to the fact that most of the equipment for the stations is imported and the prices have gone up. In part, the deadlines are being moved forward because it takes time for the local authorities to negotiate the terms of the projects with the main investor (mainly Gasprom or Rosneft)," Mr. Amiragyan says.

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