Russian energy giant Gazprom announced on November 28 its 2025 investment budget of 1.52 trillion rubles (approximately $14 billion). This represents a 7% decrease compared to the 1.64 trillion rubles allocated for 2024.
This decision aligns with Gazprom’s focus on strategic priorities, including expanding gas infrastructure in Russia and Asia. The funds will support the development of gas production centers in Eastern Siberia and the Yamal Peninsula, as well as ongoing efforts to increase gasification in Russian regions.
“The approved financial plan will ensure that all of Gazprom’s obligations are met without a deficit and in full,” the company stated in an official release.
Focus on China
China now plays a central role in Gazprom’s gas exports. The Power of Siberia pipeline, a key component of this strategy, is expected to reach its full capacity of 38 billion cubic meters per year by 2025. In 2024, planned deliveries through this infrastructure will amount to 30 billion cubic meters.
Additionally, a new pipeline connecting Russia to China via the Far Eastern route will begin operations in January 2027. It will have an estimated capacity of 10 billion cubic meters per year, bringing total exports to China to 48 billion cubic meters per year.
Gazprom is also continuing its Power of Siberia 2 project through Mongolia, with a planned capacity of 50 billion cubic meters per year. However, the terms of this agreement are still under negotiation between Moscow and Beijing.
Revenue Growth Expected
Despite the reduced investment budget, Gazprom forecasts a 6% increase in revenue for 2024, estimated at 7.9 trillion rubles. This growth is attributed to increased domestic and international gas supplies and an improved pricing environment in the second half of the year.
European gas prices reached new highs in November 2024. According to Platts, the benchmark Dutch TTF month-ahead price was assessed at €48.58/MWh, the highest level since November 2023.
