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