Less gas, more money
Russian energy giant Gazprom is unlikely to reach its pre-crisis gas production before after 2012. Still, the company expects to boost revenues already in 2010 and subsequently expand its investment program.
The Gazprom board of directors in a meeting this week approved the company’s 2010 budget and investment program, and assessed draft prognosis documents for the years 2011-2012, a press release from the company reads.
According to the prognosis, Gazprom will in 2012 produce a total of 542 billion cubic meters of gas, which is one percent less than in 2008. The financial crisis has resulted in a major drop in demand and subsequently also in the production of gas. According to newspaper Vedomosti, the demand is likely to start increase again only in the period 2013-2015. That increase will take place first of all in Europe, while Russia is unlikely to see an increase in demands before even later.
Meanwhile, Gazprom still expects to boost revenues. That will be achieved with a strong price increase both in the CIS area and domestically in Russia. While Gazprom’s prices in the CIS area already from January 2010 will increase with 60 percent compared with the 2008 level, domestic prices in Russia will double by 2012.
The growing incomes will enable the company to inject major sums in new projects. According to Vedomosti, the company’s investment program for 2011 will amount to 1.5 trillion RUB, which will be a doubling of 2010 figures and an increase of 67 percent compared with the 2008 level.
The bigger investment program will also enable the company to step up focus on its two main investment objects – the Shtokman field in the Barents Sea and the Bovanekovo field in the Yamal Peninsula.
