Rosneft may have not enough gas to fulfill contract for $50 billion

Execution of the largest gas contract of Rosneft may require additional costs and state support, the Bloomberg reports, citing its sources. In 2016-2040, Rosneft must supply 875 billion cubic meters of gas to power stations of Inter RAO UES, however, according to the Bloomberg, the company's own gas is not enough.

A source of the Bloomberg, who requested anonymity, explained that the Government prepares support to the Rospan project to increase in the gas production of Rosneft. In particular, the Ministry of Economic Development, according to the sources, plans to recommend Rospan to obtain funds from the National Welfare Fund (NWF). The draft recommendations of the Ministry notes that Rospan "is required" for the supply on long-term contracts, as Rosneft has not alternative resources, and non-fulfillment of the contract could face fines.