Gazprom Produces More, Exports Less

Russian giant Gazprom produced 2.2% more gas in Q1 2019 than in the same period last year, with 136.7bn [Russian] m³, which is about 69.4% of Russia's total output. But domestic sales and exports declined, it said April 1.

“Domestic sales declined 4.5% (4.2bn m³), while exports to Europe -- excluding former Soviet Union republics -- declined by 10.2% to 48.8bn m³ in the first quarter,” Gazprom tweeted April 1.

Despite the overall drop in exports to the European Union (EU), some countries bought more. “The Czech Republic increased Q1 imports by 52.5% year-on-year, while Austria, Italy, Hungry and Slovakia imported by 12.4%, 3.9%, 13.7% and 11.5% more respectively,” Gazprom said.

Gazprom’s 1Q results (bn m³):

Source: Gazprom’s monthly reports

Its monthly production growth pace has slowed consecutively during 1Q 19, which is likely to be due to weaker domestic demand and exports decline. Gazprom’s exports to Europe (excluding former Soviet Union republics) declined 18% year-on-year in March to 16.1bn m³. 

The central dispatching department of the fuel and energy complex (CDU TEK) also released Russia’s whole production statistics, putting the volume at a little more than 197bn m³ in 1Q19, or 3.3% more than 1Q18, Interfax reported April 2.

Independent Novatek produced 17.27bn m³, Rosneft 11.3bn m³, Lukoil 5.12bn m³, Gazprom Neft 4.97bn m³ and Surgutneftegaz produced 2.37bn m³ in 1Q19. Other companies including Russneft, Slavneft, Tatneft and Bashneft produced 1.47bn m³ in aggregate.

Gazprom Export publishes indices

Gazprom has started publishing indices for its export sales, being the volume-weighted average price for all contracts agreed on its electronic sales platform for the following month. It does not break them down by delivery point, but the downward trend over the last six months, especially over the so-called winter peak period, is clear enough.

Source: Gazprom Export