Gazprom wants to create a network of natural gas fueling stations
Filed under: Natural Gas, European Union
Russia's giant natural gas company, Gazprom, has proposed developing a network of compressed natural gas (CNG) filling stations for automobiles across Europe. Currently, most Central European countries get natural gas from Russia via continental pipelines. What Gazprom says now is that they and their partners could expand the use of that existing network, or even make it bigger, in order to feed CNG stations for CNG cars. Gazprom's CEO Alexei Miller said that "there is no real alternative for the use of hydrocarbons at present or in the next decades," and stated that biofuels weren't a good solution because they increase food prices. Miller also said that natural gas costs half the price of oil and that Gazprom had plenty of it. Check the full press release after the jump. Thanks to John for the tip.
[Source: Gazprom]
PRESS RELEASE:
Russia's Gazprom proposes CNG filling station network for Europe
Russia's state-controlled gas giant Gazprom would like to develop a network of compressed natural gas (CNG) filling stations for automobiles across Europe, Gazprom CEO Alexei Miller said Friday.
"I would like to announce Gazprom's new initiative. We are offering our European partners to consider together a project to set up an extensive network of natural gas filling stations in Europe with Gazprom's participation," Miller, who is also deputy chairman of Gazprom's board of directors, told the company's annual shareholder meeting in Moscow.
Miller said CNG could be a substitute for traditional motor fuels, prices for which continue to surge to record highs.
There is no any real alternative for the use of hydrocarbons at present or in the next decades," Miller said, adding that "an attempt to replace motor fuel with biofuels has lead to a threat of the global food crisis."
"At the same time, gas as a replacement for gasoline and diesel, especially taking into account prices for traditional fuels, is a real alternative," he said.
Discussion:
If you look at natural gas prices you can see why Gazpro are doing this – in the UK, to but natural gas today costs 60 p/therm, oil costs $140/bbl. Gas is less than half the price of oil in energy terms, it has never been so relatively cheap. Never ever.
Gazprom sell gas, they have a lot of it, they have huge financial resources, why not move into the transport market to keep demand up (demand for gas to make electricity will fall in long term as wind turbines and nuclear come on stream).
Now that the major EU OEMs like VW (new CNG Passat) and MB (new B Class) are launching new high performance high spec NGVs (as opposed to first generation which were basically petrol conversions) the market is set to grow dramatically. 25% lower CO2 than petrol, half price fuel, next to zero NOX and Particulates. Hard to beat that. In India there have been announcements re launches of right hand drive NGVs by Toyota, Mercedes, Fiat, Proton, Hyundai and GM in the last month or so. The NGV market is incredibly dynamic at the moment, copuple with hybrid and you can have a Mondeo sized car at 90 g/km!!!
Ford's tiny Ka might come to America after all
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Reader Comments (Page 1 of 1)
6-29-2008 @ 11:24AM
A.Brien said...
With a good conversion kit or if it's installed at the factory we can have bi-fueled car too, natural gas and petrol. Here in north america it's full of natural gas but goverment, usa and canada and car compagny both own and operated by big oil and big army and big money and state terrorism and pusching the price and use of gasoline and are burning the remaining food crop instead of using natural gas and algae farming bio-fuel.
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6-29-2008 @ 11:49AM
John Baldwin said...
Given all this, you can perhaps see where Gazprom may be coming from. Everything that
you would want to happen to promote NGVs is happening:
high oil price (the gas between oil and natural gas has never been as large as this),
less use of natural gas in the long term for heating and electricity due to renewable and nuclear
liquid biofuels out of favour due to impact on food prices and rainforests
reduction in cost of making and moving LNG
CNG as most efficient way to store excess wind energy
new NGVs being produced by OEMs
the range issue falling away as vehicles become more efficient and OEMs hide CNG tanks under the floor
EU taxation favouring low CO2 transportation
growth of biomethane as the most economic 2nd generation biofuel (ie not made from food crops)
In the last month in India we have seen right hand drive CNG vehicle launches announced by Mercedes, Toyota, GM, Proton, Hyundai and Fiat. All OEMs can produce NGVs, its not rocket science. However, they just have not seen customer demand in the EU and North America, instead they have appeared to be focused on flex fuel ethanol, on mild hybrids and on the potential from electric vehicles including fuel cells. Maybe this will change in the West as it has in Asia and South America. Watch the impact from Q4 2008 of the new CNG Passat and CNG Sprinter in Germany to find out. Not long to wait.
At a strategic level, it could be that Gazprom have recognized these factors before others have. If they have then its great news both for NGV folk and for consumers in the EU who are looking for a clean and low CO2 alternative to petroleum.
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6-30-2008 @ 3:54AM
Dave said...
"The current list of available [CNG] vehicles includes the following:
Honda Civic GX;
Chevrolet Express Van
Chevrolet Silverado pickup
GMC Sierra pickup
GMC Topkick
Ford E-450 shuttle bus
Ford Crown Victoria
Ford F-150
F-250 pickup
Ford Van
Ford E-350 cutaway "
http://www.autobloggreen.com/2008/06/26/natural-gas-vehicle-cooperative-launches-in-three-western-states/
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6-30-2008 @ 3:56AM
Dave said...
I agree that CNG makes a lot of sense.
We are wasting CNG on electricity production when it is the ONLY currently viable replacement for gasoline/diesel.
We need more nukes and/or renewables.
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