Gas (Russian market)

Gas production in Russia

• Gas production in Russia

Gas exports from Russia

• Gas exports from Russia

2023

Production of gas meters in Russia decreased to a minimum

In 2023, Russian enterprises produced approximately 1.2 million gas meters. This became the lowest value in several previous years, as stated in the review of AnalyticResearchGroup, published on May 29, 2024.

Gas meters operate on the basis of different physical principles. Such devices are divided into two main groups - mechanical and electronic. Each category presents different modifications that differ in design. For example, membrane, rotary, vortex, ultrasonic and tachometric turbine gas meters are offered. Russian enterprises produce domestic, municipal and industrial flowmeters.

The market in question in Russia, as noted, in physical terms demonstrates a jump dynamics, but in general, until 2023 it tends to decline. This is due to a decrease in domestic production. A significant number of gas meters are supplied to the Russian Federation from abroad - primarily from China. At the same time, the largest share in the market is occupied by goods of domestic production. It is estimated that one imported production meter sold on the market in 2017-2023 accounted for an average of about 2.2 Russian meters.

Among the significant players in the domestic industry are named CJSC Gazdevais, LLC RASKO Gazelectronics, OJSC Elektropribor, LLC PKF Betar, LLC NPP Irvis, LLC Zavod Radan, etc. Domestic production of gas meters in Russia for several years until 2023 averaged 1.5 million measuring instruments annually. At the same time, production peaked in 2018, when almost 2 million meters were produced in the country. Analysts believe that in the period from 2024 to 2028, the average production volume in the segment will be about 1.3 million devices per year^[1]

20% increase in gas cylinder production

In 2023, the production of gas cylinders in Russia increased by 19.5% compared to the previous year - from 2.89 million to 3.46 million units. Significant growth is due to the revival of demand in the domestic and foreign markets, as well as the effect of a low base. This is stated in the BusinesStat study, the results of which are presented in early April 2024.

The published data take into account the release of fire extinguishers, as well as containers for compressed and liquefied gases from ferrous metals and aluminum. According to estimates, in 2019 the volume of the market under consideration was 2.98 million units. In 2020, the production of gas cylinders in Russia decreased by 2.9% - to 2.89 million units. The negative dynamics was provoked by the COVID-19 pandemic, due to which the demand for fire extinguishers in the domestic market has significantly decreased. At the same time, the industry was kept from a more significant drop by an increase in export supplies.

In 2021, the production of gas cylinders in the Russian Federation increased by about 13% - to 3.27 million units. At the same time, the increase in the production of fire extinguishers compensated for the decrease in the segment of containers for compressed and liquefied gases from ferrous metals and aluminum. In 2022, a sharp drop followed against the background of a worsening geopolitical situation: the volume of output decreased by 11.6%. Moreover, the most significant decline affected the segment of fire extinguishers: their output for the year decreased by 0.33 million units. The main reason was the collapse of the car market: due to the suspension of car production due to a shortage of components and the withdrawal from the market of foreign companies, orders for fire extinguishers, which complete new cars, decreased.

The study also says that the development of gas cylinder production in Russia is constrained by the lack of state regulation and clearly spelled out requirements for product quality. As of the end of 2023, a significant market share is occupied by gas balloons of outdated design, which are not equipped with a locking device and pose a danger to consumers during refueling. In addition, the technical regulations existing in Russia do not comply with standards adopted abroad, which reduces the competitiveness of domestic products.^[2]

2022: Sales of gas cylinders for 5 years decreased by 10.5%

The volume of the Russian gas cylinder market in 2022 amounted to 3.09 million units, having decreased by 10.5% compared to the indicator of one year ago (in 2018 it was 3.45 million units). The corresponding data of BusinesStat analysts were released in early May 2023.

According to experts, sales of gas cylinders in Russia for five years fell almost steadily - only in 2021 the market showed growth (by 9.5%), which was influenced by the revival of business activity in the main consuming industries after the previous year's decline due to the COVID-19 coronavirus pandemic. In addition, in 2021, the Central Bank of the Russian Federation significantly reduced the key rate, which increased the availability of credit funds and stimulated the renewal of the gas cylinder fleet. However, the foreign policy crisis of 2022 completely offset the growth of the market last year: sales of gas cylinders decreased by 9.1%.

In 2022, the export of gas cylinders from Russia decreased by 18.8% compared to 2021 - to 908.1 thousand units. After the start of the military conflict, the EU countries introduced a ban on the purchase of Russian cylinders made of ferrous metals (with the exception of cylinders for transport). The main reason for the serious decline in 2022 is the complication of foreign trade operations and logistics. In addition, Ukraine, which until 2021 was one of the top 5 largest buyers of Russian gas cylinders, after the start of a military special operation announced a complete embargo on trade with the Russian Federation.

From 2018 to 2022 revenue from the export of gas cylinders from Russia increased by 6.9%: from $29.3 million to $31.3 million. The increase in value exports over the five-year period was much lower than the increase in the natural volume of supplies, as the average export price decreased by 16.4% over the period as a whole. After a sharp increase in 2019-2020. the export price of gas cylinders in 2021-2022. decreased and in 2022 amounted to $34.5 per item, which was 16.4% lower than the price of 2018.^[3]

2020: Growth of gas debts in the Russian Federation by 2.3%, to 178.4 billion rubles

By the end of 2020, gas debts in Russia amounted to 178.4 billion rubles, which is 2.3% more than a year earlier. This was reported in the draft report to the Presidium of the State Council on the gasification of regions, scheduled for the end of March 2021.

As Vedomosti writes with reference to this document, most of the debt for gas (about 80.2 billion rubles) falls on the population. The second place in terms of debts is occupied by heat supply organizations (55.9 billion rubles), the third - by "other" industrial consumers (26.2 billion rubles).

Consumers of the North Caucasus do not pay more than others for energy resources. The debt of enterprises and residents of this region for gas at the end of 2020 increased by 6.7 billion rubles and amounted to 99.2 billion rubles, or 55.6% of the all-Russian, according to the report (there is no breakdown of debts by constituent entities of the Russian Federation).

Gas debts in Russia reached 178.4 billion rubles

Gazprom reported that in the first half of 2020, against the background of restrictive measures to counter the spread of coronavirus (COVID-19) infection, the figure increased sharply, but in the second half of the year the situation stabilized. In accordance with the decision of the Government of the Russian Federation, Gazprom in April-December did not apply such a measure of influence as restricting gas supply to debtors-owners and users of residential premises.

In 2020, the number of constituent entities of the Russian Federation, where debt reduction is ensured, increased from 34 to 49. Among the leaders in debt reduction are Volgograd, Moscow and Ulyanovsk regions, the Republic of Tatarstan and the Astrakhan region. Debts of heat supply organizations for gas are practically absent in St. Petersburg, Leningrad and Kaliningrad regions.

In the course of claim and claim work, interaction with law enforcement and supervisory authorities in 2020, a refund of 117.1 billion rubles was provided. Another 8.7 billion rubles were paid to Gazprom within the framework of debt repayment schedules signed with 30 constituent entities of the Russian Federation.^[4]

Notes