Auto gas infrastructure being developed in MoU signed between Russian Machines Corp and Rosneft Oil Co

Rosneft_logoRussian Machines Corporation, a basic element business group along with Rosneft Oil Company will be jointly developing auto gas infrastructure and expanding the use of auto gas fuel in Russia. A memorandum of understanding to this effect has been signed between the two parties as they plan on coming together for the production and distribution of auto gas fuel in automobile transportation in Russian Federation besides in Moscow and Leningrad and other major European auto routes.

The two companies will be setting up a joint operating company wherein Rosneft will be studying possibility of placing CNG filling modules in their own filling stations and connecting these modules to a gas pipeline. Russian Machines, on their part will be in charge of developing technical solutions for integration of auto gas filling modules which will be supplying gas powered vehicles to be used in domestic fleet operations.

Rosneft is an oil company which is owned by the Government of Russia. It is based in Balchug, Russia and is a leading extractor and refinement company. Earlier this month the company became the largest public trading oil company following acquisition of TNK-BP.

Commenting on the agreement, Oleg Deripaska, Chairman of the Supervisory Board of Basic Element Group, said: “The mission of Basic Element’s machine building business is to support economical and environmentally friendly passenger and freight transportation in Russia. Cooperation with Rosneft oil company will enable us both to give a new impetus to inland transportation development and create a fleet of gas-powered buses and light commercial vehicles in Russia. Conversion of transport vehicles to economical auto gas fuel will also become a major factor boosting competitiveness of individual businesses and the country’s economy as a whole”.