An agreement to set up a joint venture for construction and operation of a network of CNG stations in Russia on the basis of Vankor UTT was signed by Rosneft and Beijing Gas Group Company Limited during the first Russian-Chinese Energy Business Forum. Under the agreement, Beijing Gas will have a 45% stake.
Pursuant to the document, the parties will build about 170 CNG stations in Russia, and consider the options of using LNG as a vehicle fuel. The document will enable the development of strategic cooperation between the partners in the use of natural gas as an environmentally-friendly fuel.
Development of a CNG station network in Russia is among key priorities of Rosneft’s Retail Business: the use of CNG as a transport fuel will increase the effectiveness of vehicles operation due to fuel cost reduction, and cut the negative environmental impact of vehicles.
It is consistent with Rosneft-2022 Strategy and with the Instruction of the Russian Federation President concerning the need to develop a market for natural gas as a vehicle fuel. Beijing Gas belongs to Beijing Enterprises Group Limited and is a leading company in the area of natural gas supplies, gas/power generation infrastructure construction in the Beijing region. The company manages over 20 gas projects in the People’s Republic of China.