Gazprom reduced gas extraction significantly

​In May 2016 Gazprom reduced gas extraction by 8% against May 2015 to 27.3 bln cubic m.

The company has been reducing gas extraction from the beginning of the year but its fall is more and more serious from one month to another: in January it made up 0.05%, February – 3.6%, March – 5.7%, April -7.7%.

Gas extraction in general in Russia in January-May 2016 fell by 1.3% against January-May 2015 and made up 265.4 bln cubic m, including in May – 46.1 bln cubic m.

The result of Gazprom is worse than that of the market – in January-May 2016 it reduced production by 4.7% to 171.2 bln cubic m. If the extraction goes on falling at the same rates (on average by 1.7 bln cubic m a month), on the results of the year it will make up at least 400 bln cubic m.

The rest gas producers in January-April 2016 extracted by 5% more gas than in January-April 2015.

Gazprom’s gas extraction fall is connected with the reduction of consumption in the domestic market and growth of extraction of saleable gas of Rosneft (in January-May 2016 – 19.2 bln cubic m) and at the JV of Novatek and Gazprom Neft – Severenergy, analysts think. These processes seem to cover the growth of demand for the Russian gas in Europe.