5 Nov 2019 12:36

Gazprom production falling for fourth consecutive month, canceling out previous growth

MOSCOW. Nov 5 (Interfax) - Gazprom's natural gas output in October 2019 was down 4.4% year-on-year in October 2019 to 41.9 bln cubic meters (bcm), the company said in materials.

September saw an even more substantial decline - 4.8% to 37 bcm. During the summer months, production declined, but only by token amounts not exceeding 1%.

Declining production was prompted by a warmer 2018/2019 winter season.

It led to reduced offtake of gas from underground gas storage (UGS) facilities, and as a result, reduced demand in the summer, when UGS reserves are usually replenished.

As a result, Gazprom production growth slipped to 0.4% in 10M, and could begin declining in the coming months.