Gazprom production down 36pc

Gazprom’s July production dropped by over 36% yoy as the company’s holds back exports to the European Union (down to a record low of 3.5 bcm vs over 11 bcm last year).

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Domestic consumption is also down (2% yoy), while Russian storages are getting quickly full, standing well-over 80% by now.

The next two months will be critical for Gazprom, as the company will face an increasing risk of field shut-ins if it wants to maintain its export strategy towards Europe.

Meanwhile exports toward China are up by 61% yoy, reaching close to 9 bcm in the first 7 months of the year -far from the huge drop in exports towards the EU (-31 bcm).

What is your view? How will Russian upstream evolve in the coming months?

Source: Greg Molnar (LinkedIn)