Gazprom, supplier of a quarter of Europe's gas, trimmed its outlook for 2010 gas production by nearly 1 percent on Monday, its second reduction this year, as weak economies cut demand for the fuel.
Gazprom, the world's biggest gas producer, plans to produce 515 billion cubic meters this year, the gas export monopoly said on its web site in a third-quarter report under Russian accounting standards. The company forecast gas output at about 519 bcm in June, down from a target of 529 bcm given by chief executive Alexei Miller in April.
Miller said in June that Gazprom may miss its output goal this year after consumption in southern Europe declined, stalling a recovery in demand after global economic growth revived.
Germany's market leader E.On Ruhrgas, which has a small stake in Gazprom, said last week that Europe had a current gas overhang of 30 bcm to 40 bcm.
Gazprom exports will be about the same volume this year as last year, when sales outside Russia and former Soviet Union republics were 140.6 bcm, chief financial officer Andrei Kruglov said in September.
Gazprom was producing more than 550 bcm per year before the crisis hit demand in Europe and its main customers switched to liquefied natural gas and spot gas sources, from more expensive long-term contracts for Gazprom's pipeline gas.
The temperature in Russia, where Gazprom sells more than a half its production, is expected to exceed the normal level by an average of 1 degree to 2 degrees Celsius in November, according to the Federal Meteorological Service.?
(Bloomberg, Reuters)
Gazprom is considering the sale of 9.4 percent of Novatek, Interfax reported Monday, citing a bond prospectus issued by the gas export monopoly.
Gazprom, which holds 19.4 percent of Novatek, the country's second-largest gas producer, has not made a decision about the final terms of a sale, the news service said.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.