The National Energy Security Fund has released a new report, Natural Gas Motor Fuel: Will the Balance on the Domestic Market Really Change?’, focusing on Russia.
At the moment there are good prospects for development of the natural gas motor fuel in Russia. Difficulties with expansion of gas exports raise the question about promotion of gas consumption on the domestic market, particularly given that oil companies promise to increase their natural gas output. If the domestic demand for natural gas is not elevated, the oversupply of natural gas may become an unexpected and serious problem.
Switching motor vehicles to a cheaper type of fuel may give an impetus to development of the economy through reduced costs of commodities and advance in buying activity, according to the report. Moreover, it will provide for additional quantities of oil available for exports, as domestic oil production has reached its peak and in the near future it will start easing back.
It is clear that development of the natural gas motor fuel market requires investments: it is necessary to create the fuelling infrastructure, manufacture natural gas vehicles or actively transfer existing vehicles to natural gas.
Adapted from press release by Rosalie Starling