Russia is developing a rocket engine powered by natural gas

From GNV Magazine:

January 15, 2016. The Russian space agency Roscosmos is preparing to develop a new rocket engine powered by methane to remain in international competition.

Roscosmos requests a grant of 25,000 million rubles (USD 326 million) from the federal budget to develop the basic elements of cruise engines that operate on the basis of methane.

With this amount, the agency will also develop engine prototypes for new generation liquid powered rockets, equipped with diagnostic system and emergency protection as well as the basics of engines based on composite materials.

"We intend to create a methane-driven, although there are still no plans to build rockets with those equipments, because we want to make technological progress and not fall behind foreign competitors," the agency said.

Meanwhile, the US aerospace SpaceX is developing a rocket propellant called Raptor which also works with methane.

This fuel provides advantages in the longest space missions as it is less bulky than hydrogen and their storage is easier. In addition, methane tanks do not need as much insulation, making the rockets can be lighter and cheaper costs. Finally, this gas could be found and collected on other planets, like Mars, Jupiter or Titan.