Gas production and supplies: results for 7.5 months

According to preliminary data, Gazprom produced 274.8 billion cubic meters of gas from January 1 through August 15, 2022. This is a decrease of 13.2 per cent (or 41.7 billion cubic meters) versus the same period of last year.

The domestic demand for the Company’s supplies from the gas transmission system went down by 2.3 per cent (or 3.6 billion cubic meters) over said period of 2022.

Gas exports to the countries beyond the FSU amounted to 78.5 billion cubic meters, which is 36.2 per cent (or 44.6 billion cubic meters) lower than the figure for the same period of 2021. Gazprom delivers gas in compliance with confirmed requests.

Gas exports to China via the Power of Siberia pipeline keep growing within the framework of the long-term bilateral contract between Gazprom and CNPC. The supplies are regularly in excess of the daily contractual volumes.

According to Gas Infrastructure Europe, gas reserves contained in Europe’s underground gas storage facilities were replenished by 48.6 billion cubic meters as of August 14. Companies will have to inject another 23.8 billion cubic meters of gas into the UGS facilities to get them to the levels observed at the start of the 2019–2020 withdrawal period.

It should be noted that gas prices at Europe’s spot exchanges have gone above USD 2,500. As per conservative estimates, if the trend persists, the prices will exceed USD 4,000 per 1,000 cubic meters in winter.