Price of compressed natural gas in Estonia up 70 percent from summer

While the price of compressed natural gas (CNG) in Estonian fueling stations was around €0.90 per kg in the summer, the price has now increased to €1.50 per kg.

Alexela board member Tarmo Kärsna told ERR on Wednesday that prices for CNG in the summer were between €0.899-0.934 per kg, but they have increased to €1.47-1.51 as of Wednesday.

He said the price of CNG is related to the global market price of natural gas, which has gone up significantly in the recent months and the price increase in expected to continue until spring. “The price increase could be slowed or turned by a warm winter and the implementation of the Nord Stream 2 gas pipeline,” Kärsna added.

CNG is used by new cars, but also public transportation vehicles in Tallinn and Tartu. The CEO of Tallinn public transport firm Tallinna Linnatranspordi AS (TLT) Deniss Boroditš has stated that the state should support the domestic production of biomethane more, because it could potentially replace all use of Russian natural gas and free Estonia of price swings.

Kärsna noted that CNG is still a cheaper fuel for driving than gasoline or diesel, regardless of increasing prices. “By converting the fuel consumption per km today, the cost of CNG per km is lower than that of petrol and diesel. I’ll point out an example – the CNG consumption per 100 km for a 96 KW engine is €5.66 and the gasoline consumption of a 110 KW gasoline engine is €8.52,” the Alexela board member said.

Olerex CEO Piret Miller told ERR that the prices for both CNG and liquefied petroleum gas (LPG) have both increased significantly this year, but CNG is still cheaper than gasoline and diesel.

Read more: ERR.EE

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