ST PETERSBURG, Russia - Russia's gas export monopoly Gazprom said on Tuesday its European gas exports are likely to fall more than it had previously expected as the global financial crisis hit demand
Gazprom's deputy chairman Alexander Medvedev said that exports were expected to fall to 140 billion cubic metres (bcm) in 2009, down by over 17 percent from the previous forecast of 170 bcm.
Gazprom said in a presentation to investors in February that its gas exports stood at 179 bcm last year.
The average price for Gazprom's European supplies was also expected to decrease to $260 per 1,000 cubic metres from the $280 previously expected and from around $400 last year, Medvedev said.
Gazprom was forced to drastically reduce its output this year after customers in Europe and Russia bought less gas. In January and February Gazprom's gas production fell by 14 and 15 percent, respectively.
Medvedev said that falling demand prompted Gazprom to ask independent gas producers, which extract around 18 percent of Russia's total gas output, to cut their production together with Gazprom.
"It is natural, as demand is falling," Medvedev said but declined to clarify how big the cuts were.
Gazprom, the world's largest gas producer which supplies Europe with a quarter of its gas needs, produced 40 bcm of gas in February. Novatek Russia's second-largest gas producer, extracted 2.7 bcm, up 5 percent from January.
Gazprom's deputy chairman Alexander Medvedev said that exports were expected to fall to 140 billion cubic metres (bcm) in 2009, down by over 17 percent from the previous forecast of 170 bcm.
Gazprom said in a presentation to investors in February that its gas exports stood at 179 bcm last year.
The average price for Gazprom's European supplies was also expected to decrease to $260 per 1,000 cubic metres from the $280 previously expected and from around $400 last year, Medvedev said.
Gazprom was forced to drastically reduce its output this year after customers in Europe and Russia bought less gas. In January and February Gazprom's gas production fell by 14 and 15 percent, respectively.
Medvedev said that falling demand prompted Gazprom to ask independent gas producers, which extract around 18 percent of Russia's total gas output, to cut their production together with Gazprom.
"It is natural, as demand is falling," Medvedev said but declined to clarify how big the cuts were.
Gazprom, the world's largest gas producer which supplies Europe with a quarter of its gas needs, produced 40 bcm of gas in February. Novatek Russia's second-largest gas producer, extracted 2.7 bcm, up 5 percent from January.
