The Gazprom Board of Directors took notice of the information about the Company's efforts aimed at expanding natural gas use as a motor fuel abroad.

The Company’s Management Committee was tasked to continue strengthening Gazprom positions in international NGV markets.

Background

Gazprom considers the natural gas vehicle (NGV) market as a promising area of the Company's activities targeted at increasing the economic efficiency of Russian gas sales abroad, primarily in Europe.

The NGV market is still mainly driven by the tightening environmental requirements for exhaust gases of motor vehicles and the steadily growing prices of the engine fuel produced from oil. In particular, the main factor stipulating the use of NGVs in Europe is the upcoming introduction of the Euro 6 standard from 2014.

Until now, natural gas has been the only type of fuel meeting modern environmental and economic requirements. Its use in motor vehicles will reduce CO2 and CO emissions by 25 and 80 per cent, accordingly.

Comprehensive efforts aimed at amplifying natural gas use as a vehicle fuel abroad with Gazprom's participation started in 2008.

Nowadays, Gazprom Germania and Vemex represent Gazprom Group on the European NGV market.

In 2012 the number of CNG filling stations owned by Gazprom Germania increased from 2 to 6. These stations fill motor vehicles with compressed natural gas (CNG) in Germany. By 2015 it is planned to increase the number of the company-owned stations to 15 due to the construction of new CNG filling stations.

Vemex owns 6 CNG filling stations in the Czech Republic, 4 of those were acquired in 2012. In addition, gas was delivered to 2 CNG filling stations owned by other companies. Vemex also expects to bring the number of stations up to 15 by 2015.

Moreover, Gazprom Group is making efforts to secure the Company’s NGV initiatives through the support of European countries and regions. Gazprom intensifies cooperation activities aimed at promoting natural gas use with international organizations, i.e. the UN Economic Commission for Europe, the International Gas Union, the European Business Congress, the Gas Exporting Countries Forum as well as regional NGV associations.

In addition, Gazprom promotes NGVs in Europe. Particularly, in 2011 and 2012 Gazprom Group took an active part in arranging and conducting Blue Corridor – NGV marathons in Europe. Besides, in 2012 Gazprom Germania successfully presented an LNG passenger bus and a mobile cryogenic refueller in five cities of Poland.