Gazprom to spend 34 billion dollars in three years

Gazprom’s investment program will make up not less than a trillion rubles annually from 2009 to 2011, deputy chairman of the company’s administration, Alexander Ananenkov said. The growth of the investment is connected with Gazprom’s development of Russia’s Yamal region. Experts say that 35 percent of the spending will cover the construction of pipelines, whereas 45 percent will be used for exploration and production works.

Photo: Gazprom to spend 34 billion dollars in three years

Alexander Ananenkov pointed out that the volume of investments during the current year would make up 850 billion rubles and would be increased to one trillion rubles and higher next year. The year 2010 will be marked with a 1.3 trillion-ruble investment, the official said. A slight reduction of the investment is to be made in 2011.

The increase of the investment program is connected with the development of Yamal, RBC Daily reports. The Yamal gas-transmission corridor is expected to increase reliability of the gas-transmission system. When the corridor is put into operation, it will be possible to launch the reconstruction and capital repairs of the central and southern corridors of Russia’s gas-transmission system.

British-Dutch company Royal Dutch Shell declared the largest volume of investments for this year among oil and gas companies – up to $36 billion. Gazprom is very close to it with $34 billion.

Gazprom will spend not less than 35 percent of the trillion-ruble amount on the construction of the Yamal-Europe pipeline.

Gazprom’s spending on Nord Stream and Southern Stream will increase next year too. Thus, the monopolist’s spending on transportation projects will increase 45 percent during 2010-2012. The gas giant’s own income will be the main source of funds. The cash flow generated by Gazprom may make up not less than one trillion rubles in 2008-2011 if prices on oil are maintained on the level not lower than $90 per barrel.