UPDATE 1-Gazprom ups 2010 investment to $28 bln-source

By Katya Golubkova

MOSCOW, Nov 12 (Reuters) - Russian gas giant Gazprom will increase its investment programme next year by 5 percent to 802 billion roubles ($27.94 billion), a source close to the company told Reuters on Thursday.

The investments will rise from 761.5 billion roubles earmarked for this year, of which 483.5 billion was classed as capex.

The company's investment programme includes both capex and so-called longer-term investments. The source declined to break down the total figure.

'Next year it will rise to 802 billion roubles,' the source said about Gazprom's investment programme, which is usually revised several times during the course of the year depending on market conditions.

Another source said the decision was taken at a management meeting on Wednesday, while a Gazprom spokesman declined to comment on the report.

Analysts are closely watching the whopping costs of the world's largest gas firm and have criticised the company for spending too much.

In September, Gazprom said it would cut its investment programme for 2009 by almost $5 billion to 761.53 billion roubles as the global economic downturn bit and demand for gas fell.

The company will need extra money next year as it prepares to implement ambitious projects including the Nord Stream pipeline to Europe beneath the Baltic Sea and a gas link to the Pacific port of Vladivostok, as well as the development of Yamal Arctic fields.

Gazprom plans to start building the subsea portion of Nord Stream in 2010 after Sweden and Finland recently approved construction in their territorial waters.

($1=28.70 Rouble)

(Writing by Vladimir Soldatkin; editing by John Bowker and Simon Jessop) Keywords: RUSSIA GAZPROM/INVESTMENTS ([e-mail], [phone], Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.