Move is opposed by Russian KAMAZ which plans to make similar machines.
Market players have proposed canceling import taxes and utilization fees for commercial vehicles fueled by LNG until 2025. The target of the measure is the development of LNG-transport until the appearance of domestic analogs of such machinery.
The suggestion comes from foreign makers of LNG on-highway tractors and supported by Gazprom. Now, no imported vehicles are exempted from these taxes.
The import tax for on-highway tractors is 5% of their cost, and the utilization fee is 10 to 12K Euro. LNG tractor is more expensive than its diesel analog by about 35K Euro.
LNG as motor fuel is rarely used in Russia because of the absence of gas stations for this kind of fuel. Currently, Russia has a program for developing a network of CNG stations. There are 500 CNG stations in Russia, about double the number since 2013.
LNG is more advanced technology than CNG. 1 liter of LNG is equal to 5 cubic meters of NG. It gives 2 to 2.5 larger effect for the same fuel volume.
The only LNG truck model in Russia is produced by KAMAZ. Today, they have made only a few units. CNG trucks are made in greater number – more than 40 models of CNG trucks and buses in total number exceeding 10,000 units were made during last five years.
PSR Analysis: The program of natural gas fuel for motor vehicles was announced in 2013. After seven years, the output of this program implementation from Gazprom and its subsidiaries involved in the program is close to zero. PSR
Maxim Sakov is a Market Consultant in Russia for Power Systems Research
