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Gazprom gas output may fall below 400 bcm in 2022

It is noted that demand for the company’s gas from the gas transmission system in the domestic market of Russia decreased by 2.3%

MOSCOW, August 17. /TASS/. Gazprom gas output at the end of 2022 may fall below 400 bln cubic meters (bcm) for the first time in modern history due declining exports, analysts from the Energy Development Center reported on Wednesday.

"If the declining trend in exports continues, which appears to be the case, Gazprom's production for the year may fall short of the 400 bln cubic meters per year figure for the first time in contemporary Russian history. Of course, the production dynamics will be mostly impacted by winter weather, but it appears that hitting the 400 bln cubic meters mark is highly unlikely for the time being, given that Gazprom has substantially filled Russian gas storage facilities ahead of the upcoming heating season," the report said.

More than 90% of the decline in average daily gas production in Russia in July of this year compared to June fell on Gazprom - the holding produced only 24 bln cubic meters of gas, and Gazprom production in August may fall to 22 bln cubic meters, which was explained by the fact that August is traditionally the weakest month of the year in terms of demand, the report said.

Gazprom reported earlier that the company reduced gas output since the beginning of the year by 13.2% compared to the same period last year to 274.8 bln cubic meters. Meanwhile, gas exports to non-CIS countries for 7.5 months fell by 36.2% or by 44.6 bln cubic meters to 78.5 bln cubic meters. At the same time, the average daily export of Gazprom in August increased by 3.3% compared to July to 213.3 mln cubic meters, the company said. Gazprom supplies gas in accordance with confirmed orders.

Demand for the company’s gas from the gas transmission system in the domestic market of Russia decreased by 2.3% or by 3.6 bln cubic meters over 7.5 months, the company noted.

Russian gas exports to China continue to grow via the Power of Siberia gas pipeline under a bilateral long-term contract between Gazprom and CNPC. Europe needs to inject another 23.8 bln cubic meters of gas into their underground storage facilities in order to reach the level of the beginning of the 2019-2020 withdrawal season, Gazprom said citing Gas Infrastructure Europe data. As of August 14, gas reserves in European UGS facilities had 48.6 bln cubic meters.