According to journalists, Gazprom’s output remains disproportionately low and the company has to bear the full burden of regulating the Russian gas balance.
Gas production in Russia continues to decline compared to last year’s figures – gas production in January-April decreased by 10% compared to the same period of the previous year to 235 billion cubic meters, and in April decreased by 10.3% to 55 billion cubic meters. This was reported by the Russian edition of “Kommersant”.
For this reason, Gazprom reduced its production by almost a quarter in four months due to the decrease in its exports to the European Union, while independent producers increased production slightly.
Journalists, “However, experts remind that gas production figures were at record levels at the beginning of last year and the effect of this high base will begin to wane in the near future.”
According to media reports, the volume of production “other underground usersReflecting almost the entire production performance of Gazprom, “34 billion cubic meters in April, down 20%, and 150.9 billion cubic meters in the January-April period, down 18.24 percent (including flaming gas).
“Gazprom’s output remains disproportionately low, and the company is forced to bear the full burden of regulating the Russian gas balance, as its wells in its fields are futile in the face of the sharp decline in export demand for Russian gas in Europe,” Vitaly said. Yermakov from the Higher School of Economics.
Gazprom Neft It reduced its gas production to 2.34 billion cubic meters, which is 18% less than the previous year. In the January-April period, the company’s production decreased by 18.4% to 9.4 billion cubic meters.
Supports trends and “NOVATEK”. Despite the company increasing its production by 1.6% in April to 6.8 billion cubic meters of gas (compared to 6% in March), production in the first four months of 2023 remained approximately at the same level as last year – 27 billion cubic meters.
The reduction in production also affected Yamal LNG, the weak dynamics at Yargeo and Yurkharovneftegaz.
Recall that on May 25 it became known that Beijing will most likely refuse Russia’s support for the construction of an additional gas pipeline called “Siberian Power-2”. It is Gazprom that is very interested in the new gas contract with China, as after the occupation of Ukraine by the Russian Armed Forces the company found itself under international sanctions and lost the European market for the sale of raw materials.
Meanwhile, Reuters believes that the Russian Federation’s revenue from gas sales to European countries in 2023 could collapse twice. At the same time, it is noted that the Russian Federation’s share of the European gas market has decreased to 7.5% over the past year, although it was at least 40% in 2021.
Source: Focus
John Holton is a seasoned author and journalist, known for his expertise in economics. He currently works as a writer at 24 news breaker, where he provides readers with in-depth analysis and commentary on the latest economic developments. With a background in finance and a talent for explaining complex economic concepts in a clear and accessible way, John’s writing is a must-read for anyone interested in staying informed about the economy.