Gazprom admitted that its gas exports to Europe would fall in 2019, meaning that its 200.8 billion cubic meters of gas it shipped in 2018 to Europe and Turkey is now a thing of the past.
Gazprom had previously said it would maintain this high level of exports. It will also ship gas at lower prices, Gazprom indicated, adding insult to the injury, Reuters reported.
Gazprom revenues are responsible for 5% of Russia’s economy.
In 2018, Gazprom Export LLC’s website shows, Western European countries account for 81% of its exports, led by Germany, while Central European states accounted for the rest.
Russia controls about 35% of Europe’s total gas market.
Prior to its bang-up year in 2018, Gazprom had exported 192.2 bcm in 2017. This is the level that Gazprom is expecting for 2019 as well. For prices, Gazprom is expecting a decrease of 13% this year, to $215 per thousand cubic meters.
The reason for its gas export decrease in 2019 is sluggish demand, not to mention that Russia’s gas exports have become--or perhaps has always been--somewhat of a political hot potato.
Nevertheless, Gazprom’s Q2 net income rose to $4.55 billion—a 16% increase year over year, Gazprom reported, although this was on the back of better foreign currency rates, rather than increased gas flows or prices.
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