“Gazprom” has officially recognized the decline in production

Gazprom officially admitted that the volume of gas production by the company in 2016 will continue to decline. According to the forecast, which is contained in the published company report results in the second quarter of this year, at the end of 2016, the company “Gazprom” will extract the total 417,2 billion cubic meters of gas against 418,5 billion cubic meters last year.

Compared to the previous year extraction “Gazprom” will be reduced by 0.31%. Earlier it was expected that the production volume in 2016 the company will increase significantly. In April 2016, the Deputy Chairman of the Board “Gazprom” Vitaly Markelov in an interview with the corporate magazine stated that approved for 2016, the plan envisages production growth to 452,45 billion cubic meters (+8,11%). A new forecast rate was worse by 7.79%.

In the case of the implementation of the new forecast volumes of gas production “Gazprom” will continue to decline for the third consecutive year. In recent times the company managed to achieve growth in 2013, then the increase in production amounted to 0,082% or 400 million cubic meters. At the same time in 2012 gas production by the company dropped by 5.1% from 513,2 billion cubic meters to 487 billion cubic meters.

In 2015, Gazprom also had to adjust their plans of production. Abandoning the originally planned amount of 485,36 billion cubic meters, the company lowered the benchmark to 414,1 billion cubic meters, and in the end managed to surpass it. Last year’s decline in production of gas in “Gazprom” explain “the relatively warm winter periods, as well as with a decrease in demand for gas in the near and far abroad”.

Published on Monday the report notes that by 2020 “in the presence of solvent demand of Russian consumers and favorable conditions on foreign market the volume of gas production by Gazprom may reach about 450 billion cubic meters to 510 billion cubic meters.