For now, transportation accounts for almost 20% of global energy consumption and 25% of greenhouse gas emissions. This opens a window of opportunities for us. There are environmental, technological and economic conditions for development of gas consumption as a motor fuel — Viktor Zubkov, Chairman of the Board of Directors, Gazprom.
Transport is one of the major polluters of the atmosphere, it accounts for around 40% of all emissions <…> full transition of motor vehicles from traditional fuels, especially diesel, to gas will allow to cut emissions of sulfur oxides and low-dispersive particles by 100%, nitrogen oxides – by 47%, carbon dioxide – by 42% in the upcoming years — Evgeniy Ditrikh, Minister of Transport of the Russian Federation.
According to Platts, there are 1.4 billion cars in the world. 24 million of them work on gas, less than 10 million work on electricity. We can talk about the scale of transformation and opportunities in the context of gas vehicles; as the world will go through major changes in the energy sector over the next decades — Martin Fraenkel, President, S&P Global Platts Inc..
[In the Asia-Pacific region] most vehicles run on oil products. We need to figure out how to replace oil and coil with gas both in transportation and in cooking — Armida Salsiah Alisjahbana, Executive Secretary, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
Transition to natural gas as a motor fuel will allow to cut transportation costs due to prime cost decrease by 15–20% because of its lower price. <…> Emissions will be significantly reduced, engine and vehicle lifetime will increase, as well as energy efficiency of Russian transport system in general — Evgeniy Ditrikh, Minister of Transport of the Russian Federation.
We can see at least four serious consequences [of transition to NGV fuel, – Ed.]. This impact on growth would be around extra 0.4% over the next 10–12 years. It will also have influence on competitiveness, as it leads to significant decrease of expenses; on inflation, as it can drive down producers’ prices in the middle term. <…> This will also reduce emissions: transition to NGV can help decrease emissions of solid particles to 80% — Vladimir Mau, Rector, Russian Presidential Academy of National Economy and Public Administration (RANEPA).
The advantage of methane is the matureness of the technology. We can implement and use it right here and right now. It means that gas can and must fill its niche in the nearest future — Anton Inyutsyn, Deputy Minister of Energy of the Russian Federation.
Gazprom extracts almost 500 billion cubic metres of gas <…> and there are 35 trillion cubic metres in deposits. This is a great opportunity to use resources to develop NGV fuel market not only in Russia, but all over the world. Russia has the longest gas pipes, 172,000 kilometres. There are 700,000 kilometres of distribution networks. <…> We can set up methane stations anywhere — Viktor Zubkov, Chairman of the Board of Directors, Gazprom.
The main problem is the imbalance in state policies of a number of developed and developing counties. The stake is placed on electric cars, hydrogen-powered cars, whereas NGV-fueled cars are ignored when state policies are established — Yury Sentyurin, Secretary General, Gas Exporting Countries Forum (GECF).
In Germany the potential for using gas in public transportation is huge, but we have a lot of electric car fans. We even subsidize electric cars, which is kind of ironic. You tell people that they make an eco-friendly choice by buying an electric car. But this car runs on electricity produced from coal. <…> The cost of an electric bus is at least 60% higher than that of a regular bus, and the cost of a gas bus is just 2–3% higher [than a regular one] — Mario Mehren, Chairman of the Board, Chief Executive Officer, Wintershall Dea GmbH .
The gas station infrastructure is underdeveloped. There are 31,000 stations in the world, but over half of them – 18,000 – are located in three countries: Iran, India and China. There are 4,000 of them in Europe and 2,000 in the US. In Russia we are actively developing the gas station infrastructure, but a lot still needs to be done — Yury Sentyurin, Secretary General, Gas Exporting Countries Forum (GECF).
We have problems with a relatively low density of methane station network — Aleksey Fedotov, Director for Business Development in Russia, Yandex.Taxi.
There is a risk of inconsistency of development of infrastructure and vehicles. Emergence of an excise component in the NGV fuel price. It is important to prevent monopolization of this market — Vladimir Mau, Rector, Russian Presidential Academy of National Economy and Public Administration (RANEPA).
The public opinion is not adequately informed about economic and environmental benefits, as well as issues of practical use of NGV fuel as a safe fuel — Yury Sentyurin, Secretary General, Gas Exporting Countries Forum (GECF).
At the car expo in Geneva no one is talking about natural gas — Marco Alvera, Chief Executive Officer, Snam SPA.
[According to the transport strategy, – Ed.], by 2030, the share of vehicles running on alternative fuels, including NGV, will reach at least 49%. <…> In order to increase the number of NGV-fueled vehicles, we suggest providing targeted support for purchasing NGV-fueled transport in the regions that have already created conditions for its exploitation. Now in Russia there are 26 such regions. We suggest combining them into seven clusters for accelerated development of the NGV fuel market. <…> We plan to help regions purchase passenger transport that runs on NGV. There are 20 billlion roubles reserved in the federal budget for these purposes — Evgeniy Ditrikh, Minister of Transport of the Russian Federation.
The Ministry of Energy and Ministry of Transport have to make it clear how they encourage and how they can stimulate the development of this market. <…> We need to prepare a number of fundamental technical documents, including a quality standard for NGV fuel — Igor Tonkovidov, First Deputy General Director, Chief Engineer, Sovcomflot.
Fuel will get more and more eco-friendly. We need more persistent and coordinated efforts to promote gas as a vehicle fuel — Viktor Zubkov, Chairman of the Board of Directors, Gazprom.
Four years ago, Gazprom started creating the gas station infrastructure. Today we have 310 stations, with the total capacity of 2.2 billion cubic metres of gas — Viktor Zubkov, Chairman of the Board of Directors, Gazprom.
Taxi companies have a territory where they keep their vehicles. We can build stations there and make them accessible to everybody <…> Together with leasing companies and banks we are now working on facilitating crediting for compressed gas equipment — Aleksey Fedotov, Director for Business Development in Russia, Yandex.Taxi.
In Italy the situation is pretty good. We have an agreement with Fiat that Snam is going to build gas stations, while Fiat is going to produce [gas-fueled, – Ed.] cars. Now there are 1,300 gas stations in Italy. 1.2 million vehicles, or 5% of all cars, run on gas — Marco Alvera, Chief Executive Officer, Snam SPA.