Russia does not have enough money for gas projects

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The increase in gas production this year and next year due to increased demand for gas consumption in Europe, such as shipments to Austria under the new agreement increased by 1 billion cubic meters of gas per year over contract supplies. Demand for gas in Europe is very large and demand increased by 50 billion cubic meters . meters per year, said Deputy Chairman of Gazprom Alexander Medvedev. Moreover, Russia plans to increase gas supplies to Europe to 200 billion cubic meters a year.
But the Russian gas monopoly “Gazprom” is sorely lacking Finance to implement some of its ambitious projects, particularly the gas pipeline “Nord stream-2” , “Turkish stream and Power of Siberia”. But because the company appeals to Western investors continuing to increase their debt, which is not entirely clear how it will pay off in the future.
Thus, it became known that in October, Gazprom was forced to turn to J. P. Morgan and Intesa Sanpaolo for the provision of long-term loans. In the first case, the gas monopoly took a 1.1 billion Euro and the second of 1.2 billion euros. Thus, only in October “Gazprom” has increased its debt by 2.3 billion euros. And this is excluding regular borrowing from Sberbank.
Russia supplies the gas market in Europe is approximately 35%. The main competitor in the supply of gas to Europe is Qatar, the continent which provides almost 33% of the liquefied natural gas, which supplies more cost-effective than Gazprom. Also, America is making its way to the European gas market and have developed a program to provide loans for the construction of terminals for the acceptance and processing of LNG in the amount of 1 billion U.S. dollars.
And if this program is implemented, Poland will be able to supply liquefied natural gas to Ukraine and the Baltic States, thus, displacing Russia from the European market.
Currently, Russia is successfully implementing two major projects to produce liquefied natural gas “Sakhalin-2” and “Yamal LNG” with a total capacity of 21 million tonnes of LNG a year, recalled Dmitry Medvedev. “In the next 15 years and beyond, we will strive to increase our share in the global LNG market up to 17-20%,” – said the head of government.
Thus, intense competition is pushing Russia to the adoption of more effective measures for the development of infrastructure for transportation and processing as liquefied natural gas and a trunk of supplies, and to recoup their investment, it is necessary to significantly increase the production of natural gas (non-renewable resource of our country), as well as to seek new markets.
Denis Lisitsyn,
A leading economist,