Gazprom Pledges €1.07 Billion Investment Into Sakhalin Projects

Russian major Gazprom has said that it will spend around RUB42 billion (approximately €1.07 billion) in the Sakhalin region of Russia this year, including in the creation of gas distribution networks.

Gazprom made the announcement following a meeting with Gazprom CEO Alexey Miller and Governor of the Sakhalin Region Alexander Khoroshavin last week. In a statement released on its website, Gazprom said that it was planning to spend RUB700 million (approximately €17.4 million) on constructing gas distribution networks in the region as well as continuing the construction various gas pipelines currently under construction and which are expected to be completed in 2013.

The investment will complement a heavy investment already made by Gazprom between 2008 and 2011 into the Sakhalin region, during which time the company has made an investment of RUB95 billion (approximately €2.36 billion).

Sakhalin is a gas-rich project in the Far East of Russia, which is expected to grow in output in the coming year. Earlier this year, the Sakhalin-2 project went into production sooner than expected. The Sakhalin-3 project, which is expected to produce 4.2 billion cubic metres of gas a year when it is at full production in 2015, is due to open for production by the end of this year.