Russian Agricultural Bank (RusAg, the Bank) and the Unified operator for the development of natural gas vehicle fuel (NGV) market Gazprom Gas-Engine Fuel LLC (the Company) signed a roadmap for 2020-2022 to expand cooperation in the development of gas-engine infrastructure.
“The goal of the Bank - Company interaction is to increase the consumption of natural gas as a motor fuel in the domestic market in the future. This initiative has a number of economic and environmental benefits. Russia is one of the leaders in natural gas reserves, and its use as a motor fuel reduces fuel costs. The average price of a cubic meter of methane is 2-3 times lower than the price of a liter of gasoline or diesel fuel. Also, the transition to natural gas as a motor fuel contributes to the introduction of advanced technologies, protects the environment and human health”, Denis Konstantinov, Deputy Chairman of the Board at RusAg, said.
“Natural gas is an anti-crisis solution for those industries that have high fuel costs. First of all, these are passenger, cargo and taxi services. Implementation of joint projects with Russian Agricultural Bank will create most comfortable conditions for the transition to the use of natural gas in transport and will contribute to the development of the NGV market”, Timur Soin, General Director of Gazprom Gas-Engine Fuel, said.
The roadmap provides for coordinated cooperation in the implementation of projects in priority regions of the prospective development of the NGV market, the development of consumer lending for these purposes, joint participation in thematic events, and other tasks.
Russian Agricultural Bank and Gazprom Gas-Engine Fuel LLC began active cooperation in 2018. The Bank has implemented a project to adapt the line of loan products for both individuals and legal entities – participants in the NGV market. Thus, RusAg’s product line provides for the possibility of investment and working capital financing for the development of gas filling infrastructure, including the construction of CNG1 filling stations and LNG2 filling stations, the purchase and re-equipment of transport and equipment for the use of methane as a motor fuel, and the purchase of gas-engine fuel.
The provision of loans on preferential terms is possible within the framework of state programs of concessional lending to agricultural producers and small and medium-sized businesses.
According to the Bank, the main interest in loan products related to the development of the NGV market comes from the areas of agribusiness, transport and logistics companies and housing and utilities companies.
1Automotive gas filling compressor station, CNG - condensed natural gas
2Cryogenic gas filling station, LNG - liquefied natural gas