Rosneft and Beijing Gas Set Up a Joint Venture to Develop a Network of CNG Filling Stations
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 (hereinafter, Beijing Gas) 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 motor fuel. The document will enable the development of strategic cooperation between the partners in the use of natural gas as an ecological fuel.
Development of the CNG station network in Russia is among key priorities of Rosneft's Retail Business: the use of CNG as a motor fuel will increase the effectiveness of vehicles operation due to transportation cost reduction, and reduce a negative environmental impact of motor vehicles. It is consistent with Rosneft-2022 Strategy and with the Instruction of the RF President concerning the need to develop a market for natural gas a motor fuel.
For reference:
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.
In June 2017, Rosneft and Beijing Gas Group Company Limited closed the deal to sell a 20% stake in Verkhnechonskneftegaz to the Chinese company. The price of the acquired stake was about $1.1 billion.
Rosneft Information Division
Tel.: +7 (495) 411 54 20
Fax: +7 (495) 411 54 21
November 29, 2018
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