Gazprom ‘Optimistic’ for European Gas Market in H2: CEO

Gazprom’s gas production reached 500.1 billion cubic meters (Bcm) last year, while exports fell to 199.3 Bcm.

SEATTLE (Oil Monster): Gazprom said last week it’s “optimistic” about the second half of the year, despite the downturn trend global gas markets are facing, Kallanish Energy reports.

Global natural gas and liquefied natural gas (LNG) prices have been at record lows recently, on the back of a mild winter in the northern hemisphere, high storage levels in Europe, excess supply and a collapse in demand following measures to contain the spread of Covid-19.

“There is a moderate downturn,” CEO Alexey Miller told Russian President Vladimir Putin in a meeting on Friday. “Nevertheless, we remain optimistic about the third and fourth quarters.”

The CEO said “it seems a bit early” to draw conclusions based on the first two months of this year and that Gazprom will fulfill its RUB 1.08 trillion investment program.

The plans include building 1,942 kilometers of gas trunklines, bringing 114 wells onstream and putting into operation three gas treatment units. The company also wants to increase the amount of gas in underground storage facilities by 180 million cubic meters this year.

“As of this date, we see no impending challenges to the execution of our obligations regarding the financing of the investment program in 2020,” Miller told Putin.

Gazprom’s gas production reached 500.1 billion cubic meters (Bcm) last year, while exports fell to 199.3 Bcm. In 2018, the company exported 201.8 Bcm – an all-time high.

Miller also said the company has maintained its share of the European gas market at 35.6%.

Courtesy: www.kallanishenergy.com