Gazprom directors approve 806-bln ruble 2014 investment program
MOSCOW. Dec 17 (Interfax) - The Gazprom board of directors approved the parent company's development investment program for next year at 806 billion rubles during a Tuesday meeting, the company said.
Capex is slated to total 701.11 billion rubles, including 698.21 billion rubles for capital construction and 2.9 billion rubles to acquire non-current assets. Long-term financial investment will total 104.89 billion rubles.
Revenue from operations and investment activity will total 5.552 trillion rubles, borrowing will amount to 90 billion rubles and spending will total 5.651 trillion rubles, for a net surplus of 0.5 billion rubles (including borrowing within the group and amounts carried over from 2013).
The board also examined the cost-cutting program for 2015-2016.
"The 2014 investment program has been formed based on the need to implement the most important Gazprom investment projects in the gas production and delivery area in the time allotted," the press release says.
The comprehensive development of the Yamal Peninsula is the leading priority for capital construction in the production area, according to the investment program. This involves workup of the Cenomanian-Aptian horizons at the Bovanenkovo field, which will see launch next year of a 125-megawatt booster compressor station, a gas treatment plant with capacity for 30.1 billion cubic meters (bcm) a year and 93 wells.
On the transportation side, the leading priorities are construction of the Bovanenkovo-Ukhta trunk gas pipeline system and implementation of the Southern Corridor project.
Funds will be allocated for development of the underground gas storage system, including expansion of the Punginskoye and Kasimovskoye underground storage facilities, reconstruction of the Sovkhoznoye and Severo-Stavropolskoye facilities and of the Peschani-Umetskaya underground gas storage station.
The 2014 investment program also covers investment in construction and expansion of gas processing capacity, reconstruction of gas transportation facilities, technical re-equipment, reconstruction and expansion of gas production facilities, production drilling at fields and underground storage facilities and geological exploration work.
The long-term financial investment plan covers Gazprom's participation in the South Stream gas pipeline project, construction of an LNG plant in the vicinity of Vladivostok, and financing for Gazprom Gazomotornoye Toplivo to expand NGV fuel usage.
The investment program includes financing for projects in Vietnam, Algeria, Bolivia, the UK, Libya and Uzbekistan.