DEVELOP THE USE OF NATURAL GAS IN TRANSPORT

Roundtable: Natural gas new outlets

Didier Lebout, Strategy and Development Director Gazprom Marketing and Trading France
Paris, 6 November 2013

Tables of contents

Properties of natural gas for vehicles and comparison with other fuels

Outlook on gas as a fuel for vehicles globally

Gazproms assessment of NGV potential growth in Europe

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Natural gas as a tool for European energy transitions: NGV vs diesel

120 100 80 60 Diesel NGV

Quiet and safe

Natural gas engines significantly reduce noise emissions compared with diesel engine and make operations possible at 24/7 Crash tests prove that NGVs are as safe as conventional vehicles Resource availability of gas longer than oil

40
20 0 CO2
Clean and economic

N0x

Cot

20% less CO2 and 85% less NOx compared to diesel Euro V Using bio-methane decreases CO2 emissions even more Virtually no particulates and therefore no filters or AdBlue required (contrary to diesel) Economically the most attractive alternative to comply with environmental regulation compared with diesel (30% cheaper than diesel in France).
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Compressed and liquefied natural gas are complementary in transports

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Outlook on NGV in the world

IEA - Medium-Term Gas Market Report 2013 Development of gas fuelling in transport may amount to an additional consumption of 50bcm globally by 2018, ie, a 9.4% increase
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NGV 1O top markets in the world at the end of 2012

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Gazprom assessment of NGV potential growth in Europe

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State of play in France, Germany, Bulgaria and Italy

France
177 NGV stations (including 40 public ones) 13 500 vehicles (0.04% total)- No private car users Price = 1.26 EUR/kg (no excise duty since 2008) 71% diesel price

Germany
904 NGV stations (838 public)
95 162 vehicles (0.2% total) Price = 1.05 EUR/kg incl. 0.2 EUR/kg excise duties 58% diesel price

Bulgaria
103 NGV stations (102 public)
61 256 vehicles (1.83% total) Price = 0.77 EUR/kg 40% diesel price

Italy
903 NGV stations (856 public)
746 470 vehicles (1.83% total) Price = 0.87 EUR/kg 40% diesel price

The development of NGV is primarily related to the tax and incentive policy led in each country

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A glance on a successful developped NGV market: Italy

The Italian NGV market : Continous and efficient incentive policies at both national and regional scales 962 CNG stations and 5 LNG et LCNG stations 4 LDV OEMs and 17 models Favorable taxation

35 millions vehicles in circulation, including 779,000 using natural gas as a fuel

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Comparison of NGV markets growth in France and Sweden

History show that incentives and availability of vehicles are necessary to support a fast growing NGV market.

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The case of central Europe

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