Gazprom Cuts Budget for 2019
Russian state-run gas giant Gazprom has cut its 2019 investment budget by 11.4% year-on-year to rubles 1,325.724bn ($20.21bn). This year it has already changed its plans twice as the ruble has fallen but it has held steady against the dollar so far this quarter.
|
Item ($bn) |
2019 |
Revised for 2018 |
Y/Y change |
|
Capital investments |
14.68 |
15.01 |
-2.2% |
|
Acquisition of non-current assets |
2.31 |
1.29 |
79.06 |
|
Long-term financial investments |
3.22 |
6.51 |
-50.53 |
|
Total |
20.21 |
22.81 |
-11.4 |
Source: Gazprom
In line with Gazprom’s financial plan for 2019, the external financial borrowings will total rubles 297.761bn. The figure indicates a 42.5% decline year-on-year. “The approved financial plan will provide for a full coverage of the company’s liabilities without a deficit,” Gazprom said.
Gazprom completed TurksStream offshore November 19 and its joint venture with Turkey’s Botas will extend one of the two lines onshore towards the Bulgarian border 180 km away from landfall.
The main investments under Gazprom’s investment program for 2019 cover all of its strategically important projects, including the development of the gas production centres in the Yamal Peninsula and eastern Russia; the gas transmission system in the northwest of the country; the second start-up complex of the Sakhalin – Khabarovsk – Vladivostok gas pipeline; and the implementation of the Nord Stream 2 and TurkStream and Power of Siberia gas pipeline projects, which are projected to complete late 2019.