• Natural Gas News

    Gazprom Makes no Change 2020 Investment Plan

Summary

The company has earmarked around $14bn in capital spending this year.

by: Joseph Murphy

Posted in:

Natural Gas & LNG News, Europe, Premium, Corporate, Exploration & Production, Investments, News By Country, Russia

Gazprom Makes no Change 2020 Investment Plan

Russia's state gas producer Gazprom does not foresee any difficulty in financing its 2020 investment plan, company head Alexei Miller told Russian president Vladimir Putin in a meeting on March 27.

Gazprom announced in February a capital expenditure programme worth rubles 1.08 trillion ($14bn) for this year, down from a rubles 1.32 trillion spend in 2018. The company is bucking the trend by not cutting its capex, as many other producers have done in recent weeks in response to the market downturn.

"The financial capabilities, the financial stability of the company fully allows [the plan] to be fulfilled," Miller told Putin, according to the Kremlin's website. "At present we say there will be no problems fulfilling our obligations to finance the investment programme in 2020."

The projects Gazprom plans to commission in 2020 include 1,942 km of gas pipeline, 114 wells, three gas treatment plants with a capacity of 27.5mn m³/yr and an extra 180mn m3 of gas storage space.