Industrial gases (Russian market)

Gas production in Russia

Main article: Gas production in Russia

Inert gases

Main article: Inert gases

Chronicle

2023

Growth in nitrogen production by 2.1% to 9.5 billion cubic meters

At the end of 2023, nitrogen production in Russia reached 9.5 billion cubic meters, which is 2.1% more than a year earlier. This is evidenced by the data of the analytical company TK Solutions, which were released in November 2024.

According to experts, the largest nitrogen production in Russia falls on the central federal district, whose market share in 2017-2023. amounted to 28.5%. Next comes the Siberian Federal District with an indicator of 23.3%.

In Russia, the production of industrial gases increased by 1.2% to 27.4 billion cubic meters

In 2023, the production of industrial gases in Russia reached 27.4 billion cubic meters. This is 1.2% more compared to 2022, when the figure was 27.08 billion cubic meters. The growth is associated, in particular, with an increase in the capacity of specialized companies. This is stated in a study by BusinesStat, the results of which were published in mid-August 2024.

The report takes into account the production volumes of nitrogen, argon, hydrogen, helium, carbon dioxide (carbon dioxide, carbon dioxide, carbon dioxide) and other inert gases. It is noted that industrial gases are produced by domestic enterprises both for further in-plant consumption and for sale to other companies that use these products in their activities. Among the key players in the industry are Gazprom Yamburg Mining LLC, Vyksa Metallurgical Plant JSC, Akron PJSC, Ural Steel JSC and Kazanorgsintez PJSC.

In 2019, according to BusinesStat, 24.27 billion cubic meters of industrial gases were produced in Russia. Since then, the market has shown steady growth. In 2020, the volume of output increased by 3.4% - to 25.08 billion cubic meters, and in 2021 - by another 4.9% with a result of 26.31 billion cubic meters. An increase of 2.9% followed in 2022. In general, in 2019-2023, the production of industrial gases in the Russian Federation increased by 12.9%.

The study says that in 2023, more than half of production (52%, or 14.26 billion cubic meters) came from industrial oxygen, which is used in metallurgy, heat power, chemical and defense industries, medicine and agriculture. In second place in terms of output with a share of 35% (9.54 billion cubic meters) is nitrogen, which is used for gas welding, as part of special gas mixtures that increase the shelf life of products, etc. Hydrogen closes the top three with a share of about 9% (2.4 billion cubic meters): this gas is used in oil refining, metallurgy, electricity, as well as in the production of ammonia and methanol.^[1]

2022: Market growth of 16.6% to 7.2 bcm

The volume of the Russian industrial gas market in Russia in 2022 increased by 16.6% (to 7.2 billion cubic meters), which is almost twice the growth rate a year ago (+ 8.8%; absolute indicator - 6.2 billion cubic meters). This is evidenced by the data released in May 2023 by BusinesStat analysts.

According to them, the demand for industrial gases in the Russian Federation in 2022 showed steady growth even against the background of a significant increase in the cost of almost all types of technical gases. The fact is that against the background of sanctions, the cost of production has noticeably increased, the availability of imported equipment and components has decreased. Industrial gas producers were forced to change supply chains and optimize the procedure for mutual settlements with suppliers. Prices for the neon-helium mixture and carbon dioxide increased the most in 2022 - by 37% and 23%, respectively.

Russian prices for neon and raw materials for its production (neon-helium mixture) soared after the world after the cessation of Ukrainian supplies of neon to the world market in February 2022. Neon is used for semiconductor production, and Ukraine supplied up to 50% of its global volume to foreign markets.

In 2022, the output of carbon dioxide at Russian enterprises decreased. At the same time, in 2020-2021. part of carbon dioxide was spent on the production of medical oxygen, which led to a decrease in its warehouse reserves on the market. In turn, in 2022 there was an increased demand for carbon dioxide from the food industry. After the departure of Coca-Cola and PepsiCo, Russian manufacturers faced a shortage of carbon dioxide for the production of carbonated drinks. In addition, due to a shortage of packaging, beverage manufacturers began to switch to larger containers, which led to an increase in carbon dioxide consumption per liter of products. The excess of demand over supply caused a noticeable increase in prices.^[2]

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