Industrial gases (Russian market)

Gas production in Russia

Main article: Gas production in Russia

Inert gases

Main article: Inert gases

Chronicle

2025: Production of industrial gases in Russia for the year reached 26.8 billion cubic meters

Industrial gas production in Russia amounted to 26.8 billion cubic meters in 2025, remaining at the level of 2024. This became known at the end of February 2026.

According to BusinesStat analysts, the dynamics are related to the optimization of product stocks and production capacities. Adjustment of nitrogen demand from consumer industries affected the result. The decrease in in in-plant needs for technical hydrogen also affected the overall indicators.

The leading producers of industrial gases in Russia are:

• Gazprom Processing Blagoveshchensk;
• Ural Steel;
• "Akron";
• Gazprom Dobycha Orenburg;
• "Shchekinoazot."

In 2024, the production of technical gases in Russia decreased by 2% and amounted to 26.8 billion cubic meters. The reason was the decline in oxygen production for the needs of metallurgy. The slowdown in construction and investment activity reduced demand for steel products. Metallurgy consumes significant volumes of technical oxygen for blast furnace and converter production.

The reduction in investment programs in the construction industry affected the orders of metallurgical plants. Reducing steel production automatically reduces oxygen consumption. The optimization of metallurgical capacity led to the adjustment of the demand for industrial gases.

For the period 2021-2023, the production of industrial gases increased by 4% - from 26.3 to 27.4 billion cubic meters. The growth was supported by an increase in the capacity of specialized companies. Investments in new air separation units have expanded the offering. Upgrading existing equipment has improved production efficiency.

Specialized gas companies actively developed regional capacities. The approach of production to consumers has reduced logistics costs. Long-term contracts with industrial enterprises guaranteed loading. The diversification of the customer base has increased the sustainability of the business.^[1]

2024

The production of steel cylinders for industrial gases in Russia for the year soared by 220% to 128.5 thousand units

The production of steel cylinders of small and medium volume in Russia at the end of 2024 amounted to 128.5 thousand units, which is 220.4% more than in 2023. This is evidenced by data from the analytical company Alto Consulting Group, published in November 2025.

The Ural Federal District became the main center of production, providing 70.4% of the total output. The leadership of the region is due to the powerful industrial base, the presence of metallurgical enterprises and factories specializing in the production of equipment for the oil and gas complex.

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Фото: Freepik

Analysts highlight several reasons that led to a significant increase in the production of steel cylinders:

• intensifying technical re-equipment programs for industrial enterprises in various sectors of the economy;
• increased consumption of industrial gases, including oxygen, nitrogen, argon and carbon dioxide;
• improving safety and quality requirements for steel cylinders in accordance with international standards;
• increased demand from the medical sector and the transportation industry;
• export orientation of enterprises producing products for foreign markets.

The Ural Federal District accounts for more than two-thirds of all national steel cylinder production. There are the largest factories producing containers for various purposes - from industrial and household to specialized for medical needs. The region has a historically strong metallurgical base and high technological capabilities.

Other federal districts are actively included in the development of the industry. The Central Federal District is developing an average volume segment using the potential of engineering enterprises. The Siberian Federal District is actively developing the production of cylinders for transporting technical gases. The Volga Federal District is increasing the share of enterprises producing specialized tanks for the petrochemical industry.^[2]

Reduction of oxygen production in Russia by 6% to 13.4 billion cubic meters

The release of oxygen in Russia in 2024 amounted to 13.4 billion cubic meters, a decrease of 6% compared to 2023. This is evidenced by the data of the analytical company Alto Consulting Group, released in October 2025.

Despite the decrease in volume, oxygen continues to play a strategic role in the country's economy, providing critical needs for key industries. The Ural Federal District became the leader in production, providing 26.9% of the total output.

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Фото: Freepik

The decrease in production volumes in 2024 is due to several factors:

• Industrial capacity adjustment. Enterprises carried out planned optimization of production lines. Equipment upgrades temporarily reduced output.
• Change in demand for metallurgical and chemical products. Seasonal fluctuations in demand from metallurgy and the chemical industry affected oxygen orders. Consumers adjusted procurement volumes depending on production plans.
• Modernization of production lines. Technological updating of the equipment required the shutdown of part of the capacity. The introduction of modern systems will increase efficiency in the future.

The Ural Federal District remains the center of metallurgical production, chemical enterprises and large industrial complexes. This makes the region a key player in the oxygen market in Russia.

The concentration of metallurgical plants forms a steady demand for industrial gases. Chemical industries use oxygen in synthesis and oxidation processes.

For the period from 2022 to 2024, the average cost of oxygen among producers decreased by 54.5%. The price decreased from ₽11,0 per cubic meter to ₽5,0 per cubic meter. The decrease is due to increased competition, an increase in domestic production and optimization of technological processes at enterprises.^[3]

Reducing industrial gas production to 26.7 billion cubic meters

Industrial gas production in Russia in 2024 decreased from 27.4 to 26.7 billion cubic meters. This was reported in an analytical study of the industrial gas market in Russia, published in May 2025.

According to BusinesStat, the decline occurred as a result of a decrease in oxygen production for the needs of metallurgy. The main reasons are a slowdown in construction and investment activity, as well as problems with steel exports, which limited the loading of metallurgical plants.

The largest producers of industrial gases in Russia are:

• Ural Steel JSC.
• PJSC "Akron."
• Gazprom Dobycha Orenburg LLC.
• Gazprom Processing Blagoveshchensk LLC.
• PJSC Dorogobuzh.

At the end of 2024, oxygen took a leading position in the structure of production of technical gases with a share of 50%, which corresponded to 13.4 billion cubic meters. Oxygen gas is used in metallurgy, thermal power, chemical and defense industries, medicine and agriculture.

Nitrogen ranked second in terms of production with a 36% share, which amounted to 9.7 billion cubic meters. Nitrogen gas is used in the metallurgy and food industry to increase the shelf life of products in packaging. Nitrogen is also used for gas welding of metals and as part of special gas mixtures.

In third place in terms of industrial gas production in Russia is hydrogen with a share of 9%, which corresponds to 2.4 billion cubic meters. The largest manufacturers of these products are at the same time its main consumers. The use of hydrogen in most cases is integrated into single chains with the production of final products.

Hydrogen is used in the production of ammonia, methanol and polyamides. Integration is due to the high cost of storing and transporting hydrogen. Hydrogen is also used in oil refining, ferrous metallurgy and the electric power industry.

Carbon dioxide accounted for 3% of technical gas production in Russia, which amounted to 0.8 billion cubic meters in 2024. In the food industry, carbon dioxide is used to carbonate drinks, freeze and store products. Carbon dioxide is used in the chemical industry, metallurgy and agriculture.^[4]

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.^[5]

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.^[6]

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