Gazprom has every opportunity for financing transboundary gas transmission projects

At present, Gazprom is engaged in a number of strategically important gas transmission projects – TurkStream, Nord Stream II, Power of Siberia and Power of Siberia-2. They will help to increase the reliability of Russian gas supplies to international consumers, and help set up new export routes.

The meeting

At a meeting, it was pointed out that the financial strategy secured a high level of Gazprom’s financial stability necessary for executing such major projects.

Past experiences

Gazprom adheres to a conservative approach to financing capital costs; for nine years already they have been fully secured with operating cash flow. Following the 2014 results, the Gazprom group generated a record-breaking cash flow – US$17.2 billion – and came out on top among global major public oil and gas companies by this indicator. Due to the pursued strategy, Gazprom shows impressive liquidity ratios and a rather low debt load level.

In addition, the company is in a good position for attracting borrowings from international capital markets on favourable terms and it also has a successful experience of project financing.

The outcome

Therefore, Gazprom has every opportunity for financing the scheduled transboundary gas transmission projects. 

 Edited from press release by Stephanie Roker

Read the article online at: https://www.worldpipelines.com/business-news/29072015/gazprom-has-every-opportunity-for-financing-transboundary-gas-transmission-projects/