Gazprom's board has approved the Investment Program, Budget (Financial Plan) and Cost Optimization (Reduction) Program for 2014. The company will invest up to RUB 806bn (US$24.5bn).
The top priority in capital construction costs allocation will be given to the comprehensive development of the Yamal Peninsula fields. In particular, the funds are to be allocated for the pre-development of the Cenomanian-Aptian deposits of the Bovanenkovskoye field, where in 2014 it is planned to launch a 125 MW booster compressor station, gas treatment units with an aggregate capacity of 30.1 bcm/year and 93 wells.
The main priorities in the area of gas transmission are the construction of the Bovanenkovo – Ukhta gas trunkline system and the implementation of the Southern Corridor project.
Funds will be also channelled for developing the underground gas storage system, namely for expanding the Punginskoye and Kasimovskoye UGS facilities as well as retrofitting the Sovkhoznoye and Severo-Stavropolskoye UGS facilities and the Peschano-Umetskoye UGS station.
The 2014 Investment Program also envisages investments into constructing and expanding the gas processing capacities, retrofitting gas transmission facilities, re-equipping, retrofitting and expanding gas production facilities, performing production drilling in fields and UGS facilities as well as conducting geological exploration.
The long-term financial investment plan for 2014 provides for Gazprom's involvement in implementing the South Stream project, constructing an LNG plant near Vladivostok and financing the activities of Gazprom Gazomotornoye Toplivo for promoting natural gas use as a vehicle fuel.
The financing of projects in the Republic of Vietnam, Algeria, Bolivia, the UK, Libya and Uzbekistan was also taken into account.