Editorial

                Vladimir V. Dementyev, Editor-in-Chief  

 

The Industry Is Born!

6 years have passed since we published the first issue of our Journal. Autogas Comlex has grown as well. The outlines of the Complex are clearly  defined, the              structural relations are established, the government specialized control institutions -      ecological, consumer, technical, traffic police, Ministry for Emergency Situations, Mass media - all of them have taken part in providing their service to the functioning Autogas Complex. As a matter of fact all these structural chains were created by the   Government of the USSR in 1984-1985 years. During that short period dozens of       Autogas pump and compressor stations were constructed. And these are still                functioning! Dozens of large government auto transport companies were converted      into autogas fuel. Relevant norms and directives were enacted by government               institutions. But for the Coup-de-Etat of 1991, our country would be as advanced in        Autogas Industry as Argentina today. But the so called democrats ruined the State and Autogas structural chains and relations were buried under the debris of the State. Only during the last 5-6 years the demands of economic life have led to rebirth    of the Autogas Industry.                                                                                                           

 

Today all structural links within the Industry are developed by private busines only. No practical support from the Government. Sometimes our State meekly apply to its           nominal "child" - "Gazprom" with a plea to start en mass conversion of petrol and           diesel vehicles into autogas fuel. Yet the largest non-governmental Russian company    "Gazprom" continues its policy aimed at maximization of its own profit, other                  considerations, including beheficial for the State and Russian economy are regarded as irrelevant. To pay a lip service to governmental demands "Gazprom" worked out its own internal Program ( no outsiders, "Gazprom" and its  "daughters" are the only           participants in the Program) aiming at building a few dozens of Autogas filling stations for all vast space of Russia. It's a laughing stock if one is reminded of Russian territory and the demands of its vehicle fleet!                                                                                      

Yet due to efforts of private business Autogas Industry is being developed, the market for autgas fuels is expanding quite dramatically.

Today not only individual scientists but whole  scientific collectives are engaged in Autogas fuel industry. They study characteristics of  gases and  the possibility of their using, they work out recommendations for production of necessary equipment. Scientists send  results of their research to design agencies, where engineers and inventors create all kinds of equipment for Autogas fuelling stations, for conversion of conventional engines, for transportation of gas fuels, etc. At the same time technical and normative documents on practical use of  this equipment are worked out and handed over to plants - producers of  the equipment. When the equipment is manufactured and all relevant information about it  becomes available for potential clients  then comes the next stage- project making by specialized project-design organizations. The client chooses necessary equipment according to the section “ Technological equipment” of the project and places an order to buy this equipment through a specialized trade  company.

Having at his disposal the Project and the guaranties for the equipment supply, the owner ( investor) invites a specialized building company which builds the Object and installs all necessary equipment.

As long as The Government and The State Duma (lower chamber of Russian Parliament) rely on “Gazprom” only and avoid contacts with Autogas private business, advanced participants of the  Autogas market, the latter in many respects have gone far ahead of “Gazprom” and have created their own community. Of course, for private business  today  CNG  is very difficult to work with.  Mainly due to monopolistic hold of “Gazprom” on compressed natural gas market/ Yet  the other market – LPG – is relatively  free from the tentacles of the monopolistic octopus,  though it is not free from “Gazprom” pricing policy pressure. Thanks to its relative freedom,  the  market  of  Autogas  fuels  based on liquefied petroleum gases is developing quite successfully.  Today there are more than 3000 LPG fuelling posts out of which 1200 are full fledged Autogas fuelling stations.

Recent foundation of “Gas Fuels Consumers Union” is a new stage in the Industry development. A “Partnership of Equipment  Manufacturers for LPG”  has also been established recently. The main tasks of these  non-governmental organizations  are as follows: to regulate relations between participants of Autogas Industry and of those in the adjoining Industries, to represent and to protect interests of Autogas Industry in the Government bodies, to promote the development of Autogas Industry. 

Employees from 23 Russian regions have formed an independent Trade Union “Solidarity”, where “Autogas Fuelling Department” is a new large division.

 

Today there are Russian companies which own dozens  Autogas Fuels and Multifuels  Stations each. Design of these stations is no worse than in the Western Europe and sometimes is even better. In experts’ view in 2007 in Russia more than 2 mln. tons of LPG were sold for 300-400 thousand vehicles ( that is about 1- 1,5% of all vehicles in the country). By  2013 the demand for 1582 stationary and 809 моbile new Autogas stations is expected.

Autogas Industry is one of the most profitable industries of Russia. The gross turn over of Autogas stations in 2007 is more than 625 000 000 000  rubles and gross income more than 175 000 000 000 rubles  ( 1 US dollar is about 23 Russian rubles).  “Gazprom” many times declared that for the development of  Autogas conversion in Russia  government privileges from the State  is a must. Of cause, tax and other privileges are always welcome ! But private business in this Industry is developing well enough even without privileges. Private business in the Industry does not ask for privileges. It demands removal of various beurocratic, monopolistic and other hurdles in the development of the industry. It demands a direct dialog with the government on the problems of Autogas Industry. A dialog not channeled through third self-interested parties with their own corporative interests like a “natural monopoly” - “Gazprom” – de-facto a private company, though with a large percentage of the stock nominally owned by the Russian State.

 

The Autogas Industry has recently been born. It is still young and needs help and support. It needs a voice to speak out  its  needs and demands.  We hope that our Journal – the only publication with a principled position to support  private business in the Industry – will serve its purpose: it will unite all those who are interested in rapid development  of non-conventional  ( no pipeline) gas and alternative fuels industry. We await your materials – scientific, technical and economic articles. We appreciate and we shall publish materials on  your  problems and how to deal with them, on your practical experience, on your new approaches and inventions. We hope our journal will play the role of a Communicator because through the pages of our Journal our readers have a chance to get to know each other. Please, contact us, read to us, cooperate with us to make our Journal better and to facilitate the development of Autogas Industry  for the success of the Industry and  personal success of all those who work in this Industry of the XXI Century!