Tuesday, 07 November 2006 11:36
Shtokman LNG project may cost $40Bln
Gazprom’s biggest ever project is on the global scale as an investment, but also on the global scale in terms of risk
The Russian company will be disappointed with what Chevron, Total, ConocoPhillps, Statoil and Hydro have put on the table
John McKay, London
Russian natural gas monopoly Gazprom, whose announcement of partners for the Shtokman LNG project has repeatedly been delayed, is continuing to create doubts in the minds of investors about its determination to push the project forward and about the likely final costs.
The cost of the venture was initially put at $10 billion. Gazprom’s latest estimate is around $14Bln, but that is just for Phase I. Analysts now say that the whole project could cost between $35Bln and $40Bln, while the planned start-up of 2010 has already slipped to 2012.
The Russian company will be disappointed with what Chevron, Total, ConocoPhillps, Statoil and Hydro have put on the table
John McKay, London
Russian natural gas monopoly Gazprom, whose announcement of partners for the Shtokman LNG project has repeatedly been delayed, is continuing to create doubts in the minds of investors about its determination to push the project forward and about the likely final costs.
The cost of the venture was initially put at $10 billion. Gazprom’s latest estimate is around $14Bln, but that is just for Phase I. Analysts now say that the whole project could cost between $35Bln and $40Bln, while the planned start-up of 2010 has already slipped to 2012.
Published in
June 2006
