Gazprom to Invest 4.4 bln EUR on Yamal Next Year

August 25, 2009

Russian gas major Gazprom plans to invest 4.4 billion EUR on the Yamal peninsula in 2010. 3.3 billion will go to development of the gas fields.

It was Prime Minister Vladimir Putin who told Governor of Yamal-Nenets autonomous District Yury Neyelov about Gazprom’s investment plans at a meeting on Friday, Prime-TASS reports.

- Already in 2012 Gazprom plans to produce the first gas from the Bovanenkovo field, Neyelov said. - This will increase gas production on Yamal with 250 billion cubic meters.

In addition to this, oil companies plan to invest more than 2.2 billion EUR on building of oil pipelines that will increase oil delivery from Yamal with 20 million tons per year.

At the meeting Putin and Neyelov decided to work out a plan for setting mineral taxes on all gas fields on Yamal to zero. The governor acknowledged that this will lead to lower tax incomes for the region, but said that other incomes from the project would make up for this that the state would earn more on this arrangement.