Russia to Cut Natural Gas Production Amid Warm Weather (31/05/2007)

Πεμ, 31 Μαΐου 2007 - 11:30
Unusually warm weather this year has forced Russian natural gas producers to lower 2007 production targets by billions of cubic meters, gas industry leaders said after a meeting Wednesday. Gazprom, the country's gas giant that has a monopoly on natural gas exports, said it would cut production this year by 4 billion cubic meters, to 557 BCM from 561 BCM. And smaller firms that produce gas for the Russian market could face cuts of 8 percent, compared with Gazprom's 0.7 percent decrease, Lukoil head Vagit Alekperov told reporters. "Everyone, including independent gas producers, agreed to lower production in connection with the anomalously warm winter and the current weather," Alekperov was quoted by Interfax as saying. Additionally, the gas companies said they would create a working group to adjust development programmes and investment strategies. According to government data, gas production fell short of enforced limits by 5.7 billion cubic meters, or 3.4 percent of the total amount in the January-April period. In that time, exports fell 20 percent in comparison with figures a year earlier. As a result, the gas giant has lowered its targets for exports into Western Europe by 6.8 percent, to 147 billion cubic meters from 157.8 billion cubic meters. Russian gas supplies some one-quarter of the European market. (Deutsche Presse-Agentur, 30/05/2007)