2010/11/15

(BN) Gazprom Cuts 2010 Gas Output Target for Second Time on

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Gazprom Cuts 2010 Gas Output Target for Second Time on Demand
2010-11-15 12:37:34.498 GMT


By Anna Shiryaevskaya and Stephen Bierman
Nov. 15 (Bloomberg) -- OAO Gazprom cut its natural-gas
production target for the second time this year because of
sluggish domestic and foreign demand.
Gazprom, the world's biggest gas producer, plans to produce
515 billion cubic meters this year, the Russian gas export
monopoly said today on its website in a third-quarter report
under Russian accounting standards. The Moscow-based company
forecast gas output at about 519 billion cubic meters in June,
down from a target of 529 billion cubic meters given by Chief
Executive Officer Alexei Miller in April.
Miller said in June that Gazprom, which supplies about a
quarter of Europe's gas, may miss its output goal this year
after consumption in southern Europe declined, stalling a
recovery in demand after global economic growth revived.
Gazprom exports will be about the same volume this year as
last year, when sales outside Russia and former Soviet Union
republics were 140.6 billion cubic meters, Chief Financial
Officer Andrey Kruglov said in September.
The temperature in Russia, where Gazprom sells more than a
half its production, is expected to exceed the normal level by
an average of 1 degree to 2 degrees Celsius in November,
according to the country's Hydrometeorological Center.

For Related News and Information:
Top Russa Stories:TOP RUS <GO>
Stories on Russian pipelines: TNI RUSSIA PIP <GO>
Gazprom financial overview: GAZP RX <Equity> FA1 <GO>
Map of Europe: MAPS16 <GO>
Today's top gas news: TGAS <GO>
Natural-gas markets menu: NATG <GO>
Commodity price monitor: GLCO <GO>
Energy functions menu: NRG <GO>

--Editors: Jonas Bergman, Torrey Clark

To contact the reporters on this story:
Stephen Bierman in Moscow at +7-495-771-7745 or
sbierman1@bloomberg.net
Anna Shiryaevskaya in Moscow at +7-495-771-7729 or
ashiryaevska@bloomberg.net



To contact the editor responsible for this story:
Will Kennedy at +44-20-7073-3603 or wkennedy3@bloomberg.net