Penza-Based CityGAZ to Produce Smart Gas Meters for Russia and CIS Markets
A new smart gas meter manufacturing operation is set to launch in Russia. CityGAZ plans to establish production at the Zarechny advanced development area in the Penza region.
CityGAZ is a new resident of the advanced development area in Russia’s Penza region. The new facility will operate as a full-cycle production site that combines research, engineering development and manufacturing.
The new meters are built around precision electromechanics and an integrated LoRaWAN module. The wireless data transmission technology is a modern standard for the Internet of Things. Its key advantage is the ability to transmit small data packets over distances of up to 10 kilometers in urban environments and up to 20 kilometers in open terrain while maintaining very low power consumption.
CityGAZ plans to establish a fully integrated production chain, from NIOKR (research and development work) to pilot manufacturing. That approach could accelerate the digital transformation of one of the most conservative segments of Russia’s utility sector. The company’s meters are designed for both industrial and residential use. Russian households and businesses are expected to benefit from a product that costs significantly less than comparable Western alternatives.
According to estimates from Russia’s Energy Ministry, large-scale domestic production of gas meters could generate up to 240 billion rubles (about $3.1 billion) in tax revenue by 2030.
From Pilot Projects to Mainstream Deployment
Russian manufacturers of smart gas metering systems see substantial room for expansion. According to Gazprom Mezhregiongaz, only about 70,000 of its nearly 33 million residential customers currently use smart gas meters.
The Energy Ministry estimates that the nationwide rollout of smart gas meters will require investments totaling 550 billion rubles (about $7 billion). Over the next decade, Russia plans to replace 25 million conventional gas meters with intelligent metering devices. That creates a long-term order pipeline for companies such as CityGAZ.
Meanwhile, the Penza-based manufacturer is not limiting its ambitions to the domestic market. Company executives say they plan to produce meters for industrial facilities and residential housing sectors across CIS countries.
How the Industry Is Taking Shape
Over the past five years, Russian developers and manufacturers have significantly expanded their capabilities in smart gas metering technologies. In 2020, Donskoye nauchno-proizvodstvennoye predpriyatiye Skaymetr (Donskoye Scientific and Production Enterprise Skaymetr) received a grant to develop a new smart meter model.
In 2024, the Start foundry and mechanical plant launched serial production of components for intelligent gas meters. The same year also marked an important milestone with approval of Russia’s national LoRaWAN standard, reducing the risk of technological fragmentation among different smart metering manufacturers.
In 2025, Gazprom Mezhregiongaz CEO Sergey Gustov announced plans for a large-scale initiative to equip residential buildings with smart gas meters.
All that places the Penza project squarely within the broader nationwide push to digitize Russia’s gas utility infrastructure.
On the Verge of Large-Scale Gas IoT
The CityGAZ project represents more than the launch of another manufacturing facility. It signals that Russian developers and manufacturers are responding directly to market demand and government priorities by investing in practical industrial projects. The company’s plans to supply foreign markets also suggest confidence in both product quality and competitiveness. Russian manufacturers have already demonstrated that they can produce equipment that matches Western alternatives in performance and functionality.
