Gazprom’s new plan

Gazprom to extract more

Russian energy major Gazprom in its draft General Development Plan for the period until year 2030, outlines total investments of up to 647 billion USD. The investments will help boost the company’s annual gas production to almost a trillion cubic meters.

The plan, currently under elaboration in the company, shows that the gas giant believes investments of between 544-647 billion USD will be necessary in order to meet supply obligations in the period. The investments will be made both in reconstruction and in new projects, newspaper Vedomosti reports.

More production

Meanwhile, gas extraction will see a major increase in the period. According to Vedomosti, which has obtained copy of the plan, gas production will by 2030 amount to an annual of 876-981 billion cubic meters, which is up to 50 percent more than today.

Most of the gas will be spent on the growing Russian domestic demands (550-613 billion m3), while exports will increase to between 415 and 440 billion m3. Of the exports, between 343-373 billion cubic meters will be sold to the “far abroad”, while between 98-114,9 billion cubic meters will be sold to the “near abroad” of former Soviet republics.

Modest drilling

Despite the ambitious production figures, Gazprom does not intend to much step up investments in new field development. An average of 192-122 new wells will be drilled per year, which is about the same as for 2008

The plan might however not be approved by the company board. On the contrary, experts believe that the company will have to adjust the figures, and especially the ones on the production increase.

Gazprom in 2007 produced a total of 654 billion cubic meters of gas, of which 245 billion was exported. Of the exports, 91 billion m3 was sold to “the near abroad”, while 154 billion m3 was sold to the EU and other European countries