State subsidies will extend to the production of LNG powered vehicles

Russian state subsidies will extend to the production of LNG powered vehicles. Manufacturers of cars on liquefied natural gas (LNG) will share their benefits with colleagues producing more popular vehicles with compressed natural gas (CNG). The relevant statement has been made by the minister of industry and commerce Denis Manturov to Izvestiya newspaper. According to Manturov, the amendments on the subsidy programme for CNG and LNG powered vehicles have already been approved by the government. 33% of Russian automobile market may be formed of vehicles using liquid gas by 2030.

As told by Manturov, the total amount of subsidies will remain unchanged in 2018, at 2.5 billion rubles.

“Gas-powered fuel, especially liquefied gas, is on our priority list. CNG and LNG powered vehicles will be within the same subsidy programme. The subsidy will give the clients the choice on which vehicle to buy” – the minister explained.

The government will compensate for up to 30% of the purchase price of the automobile. A little bit more than 2 million vehicles have been sold via subsidies in 2016. The amount has already reached 2.5 million by the end of the first half of 2017.

Gazprom will run a federal programme for the expansion of gas filling stations network and the construction of small LNG plants. According to the company forecast, the volume of LNG consumption by freight transport will be equivalent to 33% of the total amount of fuel sold in Russia by 2030. In future, LNG usage will not only be limited to automobiles, expanding to railways and maritime transport.

Source: RusAutoNews.Com