Gazprom somewhat resuming spending on pipe repair, storage
MOSCOW. Jan 29 (Interfax) - Gazprom financing of a program for the reconstruction an technical re-outfitting of the unified gas-supply system (ESG) has since the company set up a department for managing corporate expenditures headed by Mikhail Sirotkin has held at historically low levels, although it has begun to resume a little this year.
In 2012, the company earmarked 20.83 billion rubles for this, then the figure increased to 23.6 billion rubles, where in the preceding five year it had not gone under 40 billion rubles and in 2011 and 2009 exceeded 50 billion rubles. In 2011, 432 kilometers of trunk pipeline was reconstruction, but only 141 km in 2012. Pipeline reconstruction has been planned for this year at 26.99 billion rubles, an informational memorandum for the gas giant's Eurobond issue says.
Last year's dip in the dynamics of financing along this line at Gazprom is attributable to several things: the department's principled policy for managing corporate expenses not to include in the budget projects without a completed feasibility study, and delays in tender procedures by the department itself. That the situation last year prompted serious conclusion-drawing at the company is evidence by the fact that by the middle of the year the company website had "procurement plans for capital ESG repair in 2013."
Gazprom itself regularly complains about the system's deterioration, which has resulted in explosions along truck gas pipelines. Gazprom's EGS at the start of last year ran for 165,000 kilometers, 75% of which is older than twenty years and 16% older than forty years. Deterioration leads to regular system breakdowns.
Capital investment in the field of underground gas storage will increase to 37 billion rubles from the 32 billion in the final version of the investment program for last year (it was originally only 17.3 billion rubles).
Investment program breakdown in billions of rubles for 2013, and for 2012 in first and second versions.
| 2013 | 2012-2 | 2012-1 | |
| DEVELOPMENT | 705.4 | 974.7 | 776.6 |
| CAPEX | 658.5 | 890 | 709.6 |
| PRODUCTION | 213 | 262 | 253.2 |
| Bovanenkovo | 60.57 | 88.78 | 93.96 |
| Medvezhye, Urengoiskoye, Yamburskoye | 35.19 | 38.06 | 36.35 |
| Kirinskoye | 36.13 | 19.02 | |
| Zapolyarnoye | 2.01 | 10.71 | 11.74 |
| Yubileinoye | 3.05 | 5.02 | |
| TRANSPORT | 319 | 516 | 369 |
| EGS reconstruction, technical re-outfitting | 26.99 | 23.6 | 20.83 |
| UNDERGROUND STORAGE | 37 | 32 | 17.3 |
| Distribution | 8 | 17 | 7.6 |
| Processing | 13 | 10 | 10.3 |
| Bovanenkovo-Ukhta | 102.92 | 201.31 | 128.12 |
| Ukhta-Torzhok | 21.66 | 105.66 | 75.97 |
| Gryazovets-Vyborg | 13.42 | 67.47 | 67.73 |
| Kirinskoye-coast | 11.87 | 21.22 | |
| Southern corridor | 82.53 | 8 | |
| Gasification | 33.4 | 33.76 | |
| FINANCIAL INVESTMENT | 47 | 84.6 | 67.04 |
| Foreign projects | 16.04 | 6.05 | 5.34 |
| South Stream | 15.12 | 6.05 |