Gazprom Setting LNG Production as One of Company’s Priorities

Source: 11/22/2022, Location: Asia

The Gazprom Board of Directors expressed its approval of the Company's ongoing projects for the production and supply of liquefied natural gas (LNG).

It was noted that Gazprom considers it a top priority to increase its LNG production. Creation of new capacities generates additional possibilities in terms of diversifying the Company's sales markets and increasing the flexibility of gas supplies to Russian consumers.

A large-scale LNG production plant is currently in operation in eastern Russia within the Sakhalin II project.

In the northwestern part of Russia, Gazprom launched the mid-scale Complex for LNG production, storage and shipment near the Portovaya CS in September 2022. The presence of such production capacities on the coast of the Baltic Sea has considerably strengthened the energy security of the Kaliningrad Region.

Liquefied natural gas is also used in public transport as an efficient and eco-friendly motor fuel. It is delivered from the abovementioned Complex to the transport enterprises of St. Petersburg under the agreement for promotion of the use of LNG in transport, which was concluded between Gazprom and St. Petersburg.

In the Leningrad Region, Gazprom is implementing a project for the construction of a large-scale liquefied natural gas production plant as part of the Complex for processing ethane-containing gas.

The Company is actively working to create small-scale LNG production facilities, including those required for off-grid gas supplies to localities that are situated considerably away from gas trunklines. Such project was successfully implemented by Gazprom in the Perm Territory. Next in line are LNG complexes in the Amur, Tomsk and Sakhalin Regions.

Gazprom uses LNG as a motor fuel in its own road, waterborne and railway transport. In conjunction with Russian producers, the Company takes part in the creation of new models of LNG-powered vehicles and machines.

For instance, a fleet of KAMAZ-5490 NEO freight trucks that run on LNG has been created in the Primorye Territory. The freight trucks are custom-made for Gazprom and operated by Gazprom Helium Service. In 2022, the trucks traveled 10,000 kilometers from Vladivostok to St. Petersburg during the Gas into Engines rally for vehicles powered by natural gas.

A prototype of a new bus for shift personnel, namely the KAMAZ-6250 model, was custom-made by KAMAZ for Gazprom. The new bus model can be equipped with a cryogenic fuel system that runs, in particular, on liquefied natural gas or compressed natural gas. This model will serve as the basis for creating the KAMAZ-62501 mobile workshop truck.

Russia's first LNG bunkering vessel, Dmitry Mendeleev, which was custom-built for Gazprom Neft, started refueling ships with liquefied natural gas in September 2022.

The first Russian shunter powered by LNG – TEMG1 – can be seen at work at a railway station in the Orenburg Region. The shunter, which was developed for Gazpromtrans, is under pilot operation now.

Russian enterprises are currently developing prototypes of LNG-powered machinery, such as pipelaying cranes, loaders and bulldozers.

The Management Committee was tasked with continuing the implementation of the projects for the production and supply of LNG.

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