Russ Oil-Gas

29–10–2006 RBC News – To ensure sufficient gas supplies, Russian gas giant Gazprom has to at least double its investment, Economy Minister German Gref told reporters on Tuesday. Not only Gazprom but also other gas companies need a clear development strategy, Gref said, noting that it should be aimed at increasing gas production. In 2007 Gazprom will increase its investment program by 42.5 percent to RUR 531.8 billion (approx. $20bn), including RUR 360.56 billion in capital investment and RUR 171.22 billion (approx. $13.5bn and $6.4bn) in long-term financial investment. In 2008 and 2009, Gazprom expects to invest RUR 623.73 billion and RUR 702.95 billion (approx. $23.3bn and $26.2bn), respectively. Capital investment is projected to be RUR 521.63 billion in 2008 and RUR 588.5 billion (approx. $19.5bn and $22bn) in 2009, and long-term financial investment will be RUR 102.1 billion in 2008 and RUR 114.45 billion (approx. $3.8bn and $4.27bn) in 2009. Gazprom’s 2007 investment program focuses on the Yamburg, Bovanenkovskoye, Kharasaveiskoye, Yuzho-Russkoye, Shtokman and Prirazlomnoye fields. Long-term investment will be made in Gazprom’s projects abroad (in Tajikistan, Kyrgyzstan, Uzbekistan, Vietnam and India). Gref said the Economy Ministry was against plans to change the tariff policy in the gas industry in 2007. He stressed that the Economy Ministry was for increasing free trading on the gas market. The Industry and Energy Ministry said earlier that gas prices would rise by more than 15 percent in 2007. According to the 2007 federal budget, gas prices for all gas consumer categories will not rise by more 15 percent next year. In 2008, the average price for natural gas will rise by no more than 14 percent, and by no more than 13 percent in 2009, in accordance with the maximum prices (tariffs) for the products and services of Russia’s natural monopolies as approved by the government.