Gazprom has every opportunity for financing transboundary gas transmission projects
The Gazprom Board of Directors took note of the information about the Company’s financial strategy for major projects on transboundary gas pipelines construction.
At present, the Company is engaged in a number of strategically important gas transmission projects – TurkStream, Nord Stream 2, Power of Siberia and Power of Siberia-2. They will help increasing the reliability of Russian gas supplies to international consumers and setting up new export routes.
The Meeting pointed out that the financial strategy secured a high level of Gazprom’s financial stability necessary for executing such major projects.
Gazprom adheres to a conservative approach to financing capital costs – thus, for nine years already they have been fully secured with operating cash flow. Following the 2014 results, Gazprom Group generated a record-breaking cash flow – USD 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 favorable terms and it also has a successful experience of project financing.
Thereby, Gazprom has every opportunity for financing the scheduled transboundary gas transmission projects.