Gazprom Adheres to 2019 Budget
Russian giant Gazprom will spend rubles 1.325 trillion ($20.5bn) this year, including up to rubles 226bn in major gas export routes, it said January 24. The figure is in line with revised budget plan for 2019 last November. The company’s focus is on Nord Stream 2 (NS2), TurkStream (TS 1&2) onshore as well as the Power of Siberia.
Gazprom’s investments (Bn ruble)
|
Pipelines
 |
2017 |
2018 |
2019 |
|
|
North Stream 2 |
104.2 |
92.2 |
53.2 |
|
|
Power of Siberia |
158.8 |
219.04 |
147.53 |
|
|
TurkStream |
92.8 |
172.45 |
26.03 |
Source: Gazprom
Nord Stream 2
About 370 km of the 55bn m3/yr pipeline have already been laid as of end-2018, according Gazprom. The 1,200-km pipeline is expected to complete late 2019 and deliver gas to Germany directly through Baltic sea. Gazprom plans to invest about $805mn in NS2 this year, about 42.3% less than 2018.
US has repeatedly threatened to impose sanctions on companies involved in NS2 and recently its embassy to Germany sent warning letters to companies. Germany's foreign minister Heiko Maas (SPD) has asked the US ambassador in Berlin, Richard Grenell, to stay out of an economic project that would ensure energy security in Europe.
TurkStream
Last year Gazprom completed offshore section of two tranches of TS under the Black Sea. The first branch aims to deliver 15.75bn m3/yr to the Turkish market, but the second branch with the same capacity is to stretch 180 km in land to reach Europe. Gazprom sees the line carrying gas to Bulgaria, Serbia, Hungary and Austria. It could also be used for gas supply to Greece and south Italy. Gazprom plans to invest about $394mn in this project this year, about 85% less than 2018.
Power of Siberia
Russia plans to send 5bn m3 to China through the Power of Siberia to China in 2020, rising in later years to 38bn m3/yr.
Recently Gazprom reported that in 2018 it completed the bulk of the construction work for the linear part of the Power of Siberia gas pipeline; the pre-development work on the Chayandinskoye field, meant to provide first gas to the Chinese market, is well underway.
In the current year, Gazprom plans to invest above $2.23bn in the pipeline, of which about three quarters are to be spent on the linepipe and the rest on compressor stations.