Gazprom cuts production outlook

21st December 2010, Comments 0 comments

Russian natural gas giant Gazprom Tuesday lowered its production outlook through to 2015 and indicated that it had no immediate plans to start up the vast Shtokman field.

The company said in a statement that it expected annual production to rise to 570 to 580 billion cubic metres by 2015.

Gazprom chief Alexei Miller had in 2008 predicted that production would rise to 610 to 615 billion cubic metres by that stage and there was no formal explanation for the forecast revision.

A company spokeswoman said by telephone that certain revisions were forced by "the financial crisis and other factors" but provided no other details.

The world's largest gas company's output reached 460 billion cubic metres in 2009 amid a drop in a European demand caused by the world financial crisis.

The company said in October that its 2010 figures were on track to improve by 15 percent.

Gazprom also reported a series of priority projects through 2015 that notably excluded the development of its Shtokman gas condensate field.

The energy giant earlier this year said it may have to delay the Arctic field's start-up because of shifts in energy demand. Gazprom had intended to use the site to break into the US liquefied natural gas market.

But the United States is now focused on shale gas production, which has boosted output, and Shtokman was not on the list of projects presented to the company's board of directors Tuesday.

The list included the commissioning of the Urengoi and Yamburg deposits in Western Siberia and development of its Medvezhye, Zapolyarnoye and Pestsovo fields.

© 2010 AFP

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