Page 93 - bne IntelliNews Country Report: Russia Dec17

Japan’s Marubeni Corporation and Mitsui O.S.K. on building a liquefied natural gas (LNG) transhipment terminal on the Kamchatka Peninsula, the company said on November 28. The terminal is central to Novatek's LNG ambitions as it would ensure flexible supplies of LNG to the key market of Asia-Pacific countries.
Russian state-run natural gas giant Gazprom will borrow a record RUB417bn ($7bn) abroad in 2018 to finance its most expensive ever investment programme, the company announced on November 23, as much as the government used borrow annual from the international market before the sanctions regime was imposed. The investment programme and borrowing plan were approved by the management board but still need to be approved by the board of directors Until 2016, Gazprom's borrowing plans were never above RUB80mn, but actual borrowing always exceeded the plan In 2017, Gazprom's debt payments are to peak, with $11.7bn to meet repayments of $6.9bn slated for 2019 and $4.3bn for 2020 Gazprom will need to borrow abroad to finance its most expensive ever investment strategy, which is to surge by one third to RUB1.2 trillion ($17.bn) in 2018, year-on-year In the centre of investment scheme will be several major projects, such as Chayanda gas field in Yakutia , the resource base for the Power of Siberia (Sila Sibiri) gas pipeline to China, the pipeline itself, the pipeline infrastructure in the North West region and the Turkish stream pipeline.
Russian state-run natural gas giant Gazprom is preparing its most expensive ever investment strategy worth RUB1.2 trillion ($17.bn) for 2018 , Interfax reported on November 22, quoting a source familiar with the company's plans. The value of Gazprom's investment is to increase by one third, compared with 2017. The main growth, compared with the original plans, will concern several major projects, such as Chayanda gas field in Yakutia , the resource base for the Power of Siberia (Sila Sibiri) gas pipeline to China, the pipeline itself, the pipeline infrastructure in the North West region and the Turkish stream pipeline. Gazprom board is expected to consider the investment scheme on November 23 at a board meeting. Gazprom's investments have been growing year-on-year since 2013, when the company began several major pipeline projects, including the Power of Siberia and now abandoned South Stream, later replaced by Turkish Stream and North Stream 2. In 2017, Gazprom's highest spending was on the Power of Siberia, construction of which began in 2014, following the signing of a 38bn cubic meter a year gas supply agreement with China's CNPC. The original completion date was 2021. Meanwhile, funding for North Stream 2 has not yet been finalized, and Gazprom could end up footing the good part of the bill by itself. In January-July 2017, Gazprom's exports to Europe soared 12.6% y/y to 110.8bn cubic meters.
Some creative accounting allowed the holding company that owns state-owned oil giant Rosneft to report a net loss in 2016 despite earning billions of dollars from the privatisation of a 19.5% stake, the biggest privatisation in years. The privatisation of Rosneft brought the state-run Russian holding Rosneftegaz a loss of between RUB167bn and RUB170bn (circa $2.8bn), RBC reported on November 20, quoting the company's accounting documents.
Russian state-owned gas behemoth Gazprom managed to annoy its minority investors again by massively expanding its charity programme by 60% to a record RUB26.3bn ($438mn) a year. Minorities in the gas
93 RUSSIA Country Report December 2017 www.intellinews.com