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Gazprom to Splurge on EU Gas Pipe as U.S. Weighs Penalties

  • Gas exporter to spend 1.52b euros on Nord Stream 2 next year
  • Exports to Europe seen holding at 188 bcm/year through 2020
An employee secures a protective cap to a steel pipe destined for OAO Gazprom, produced by OAO TMK at the company's plant in Volzhsky, near Volgograd, Russia, on Thursday, Sept. 22, 2011. Russia's largest producer of steel pipes for the oil and gas industry, isn't planning a secondary offering this year, its billionaire owner Dmitry Pumpyansky said.

Photographer: Andrey Rudakov/Bloomberg

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Russia’s natural gas exporter is channeling more money into the fight for market share as the U.S. threatens its biggest European pipeline project with possible sanctions and delivers tankers of fuel to the region.

Gazprom PJSC plans to spend 802 billion rubles ($13.7 billion) on routes to Europe and China in 2018, almost 41 percent more than this year, according to a draft budget prepared for a board meeting Tuesday that was seen by Bloomberg News. The biggest project is its Nord Stream 2 link to Germany, which had planned to start borrowing from banks next year before being singled out as a potential target by the U.S. in August.