Russian state gas company Gazprom reveals drops in production and sales

5 October 2022, 02:33 PM
Alexey Miller, CEO of Gazprom (Photo:Maxim Shemetov / Reuters)

Alexey Miller, CEO of Gazprom (Photo:Maxim Shemetov / Reuters)

Russian state-owned gas company Gazprom has revealed significant drops in production and sales since the start of the full-scale Russian war against Ukraine, the company revealed in a statement on Oct. 5.

According to preliminary data, Gazprom produced 313.3 billion cubic meters of gas in the nine months of 2022. This is 17.1% (64.8 billion cubic meters) less than in 2021.

Exports to non-CIS countries amounted to 86.9 billion cubic meters - 40.4% (by 58.9 billion cubic meters) less than in the same period in 2021, Gazprom said.

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Demand for the company's gas in the domestic market over this period decreased by 4.1% (by 7.2 billion cubic meters).

Gazprom also said that the key factor in reducing gas demand in the world was the reduction in gas consumption in the EU.

“For the first nine months of this year, according to the first preliminary estimates and available operational data, global demand has decreased by about 40 billion cubic meters,” Gazprom said.

“In this reduction, 75% or 30 billion cubic meters is the share of 27 EU countries. Gas consumption also decreased in the UK: over the specified period - by about 5 billion cubic meters. Thus, the total share of the EU countries and the UK in the reduction of world demand is almost 90%.”

Gazprom also noted the growth of gas exports to China via the Power of Siberia gas pipeline under a bilateral long-term contract with CNPC.

“Supplies regularly go beyond the daily contract quantities,” the statement said.

“In September, two historical maximums of the daily volume of exports were recorded for the entire period of deliveries.”

According to German media, German authorities believe that the Nord Stream 1 gas pipeline and one of the Nord Stream 2 pipelines, damaged as a result of an unknown incident, are permanently out of order. EU authorities have said that they believe the incident to be the result of sabotage.

Meanwhile, the Netherlands have revoked an operating license from the Turkish Stream gas pipeline operator, through which Russian gas is transported to Southern and South-Eastern Europe.

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