IEA sees risks of financing major Russian gas projects

MOSCOW, November 10. The international energy Agency (IEA) sees risks of financing major oil & gas projects. This is stated in the Agency’s report on the world energy Outlook (World Energy Outlook 2015).

“The prospects for the implementation of new export projects of Russia (specifically Gazprom) is undermined by low prices for hydrocarbons and the international sanctions that restrict Russian companies’ access to Western markets, creating a shortage,” notes the IEA.

Internal sources of financing, such as national welfare Fund and alternative international sources, for example, Chinese financing is unlikely to replace them in full, the report notes.

The IEA emphasizes that the depreciation of the ruble increases the cost of imported equipment, which remains an important for the new LNG projects in Russia, such as the project of NOVATEK “Yamal LNG”. The final investment decision on the project “Yamal LNG” was made, but its future is uncertain because of financing issues, the Agency said.