Easing back: at Gazprom
Gazprom cuts output on demand slump
Russian giant Gazprom will cut gas output by 13.8% this year to its lowest level ever as demand slumps both domestically and among its largest foreign customers, Russian media reports said.
The world's largest gas producer, which supplies a quarter of Europe's gas needs, will produce 474 billion cubic metres this year, with exports to Europe expected to fall by 10% to 142.5 Bcm, Moscow-based financial daily Vedomosti reported today, citing Gazprom documents.
The company has previously only given a range of expected production falls in 2009, saying it could fall as much as 18%.
Gazprom's state-controlled board will meet later today to discuss key financial and production targets.
The company declined immediate comment following Vedomosti's report, which also said the biggest fall in supplies this year will be to countries of the former Soviet Union, which will import 30% less gas, or 56 Bcm.
Supplies to Russian customers will also fall by 11% to 268.4 Bcm.
Gazprom has previously said its investment programme for the year will fall by a quarter from the initial plan to around 760 billion roubles ($25.3 billion), with Vedomosti reporting that every one of the company's major projects will see a cut in investment this year.
The budget cut will affect gas projects on the Yamal peninsula, which will see investment slashed by a third to 147 billion roubles.
The Prirazlomnoye field on the Kara Sea and Shtokman on the Barents Sea will have investment halved to 10.8 billion roubles and 13 billion roubles respectively, a Reuters report said.
The company also slashed spending plans for the Nord Stream pipeline to Germany by 28% to 31 billion roubles and cut investments in Sakhalin 2 by 60% to 19 billion roubles.