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Russia's Gazprom decreased gas output to all-time yearly low in 2023

Russian energy giant Gazprom Group cut natural gas production by 13% to an alltime annual low of 359 billion cubic metres (bcm) in lossmaking 2023 from 412.94 bcm in 2022, the business stated in its yearly report on Monday.

Its natural gas output diminished by nearly a 3rd from 515 bcm in 2021 to the most affordable level considering that the company was set up in the passing away days of the Soviet Union in 1989 from the Ministry of Gas Market.

Kremlin-owned gas giant Gazprom plunged to a net loss of 629 billion roubles ($ 7 billion) in 2023, its very first annual loss considering that 1999, amidst diminishing gas trade with Europe, when its primary sales market.

Gazprom Group integrates company's gas, oil and electric power companies.

Company's oil and gas output in Russia increased last year by 6.6% to 72.38 million metric lots.

Gazprom, unlike oil companies, stopped working to diversify its sales away from Europe following a significant crisis in relations with the West over the dispute in Ukraine.

It has been in painstaking talks with China over more gas sales. Nevertheless the settlements have actually not flourished over number of problems, primarily costs.

Gazprom has actually instead turned to the low-cost domestic market, also neighbouring ex-Soviet countries, such as Kazakhstan, Uzbekistan and Kyrgyzstan, which, according to analysts, would be be able to replace high-cost European markets.

(source: Reuters)