Gas production in Russia collapsed

In the first half of 2020, gas production in Russia collapsed by 9.7 percent compared to the same period last year. This is evidenced by the materials of the Central Dispatch Department of the Fuel and Energy Complex (CDU TEK) RIA Novosti.

Total production amounted to 340.808 billion cubic meters, of which 47.697 billion fell in June. In particular, in January-June, Novatek reduced gas production by 0.6 percent, and Surgutneftegas by 1.8 percent.

Previously, Gazprom, which has a monopoly on the export of Russian pipeline gas, recognizedthat in 2020 the company’s performance will be significantly worse than a year earlier.

Among the reasons are called decline fuel costs, which occurred against the background of an abnormally warm winter, and increased competition from liquefied natural gas (LNG). The latter factor has led to a drop in exports to key markets.

For example, Turkey, once the second largest foreign buyer of Gazprom, reduced Deliveries from Russia seven times. As a result, for the first time in history, the company received a loss for the first quarter, traditionally the most profitable of the year.