Gazprom Braces for Yet More Pain

摘要

Western sanctions and crashing oil prices presented the Russian gas industry with a fresh set of challenges last year to add to existing problems with declining European demand, forcing Gazprom to recalibrate its export strategy and adding further strain on its finances. This year's outlook doesn't look much brighter. Gazprom reckons its production fell 3% in 2014 to 463 billion cubic meters (46.7 billion cubic feet per day), more or less in line with energy ministry estimates of a 4% decline in overall Russian output to 641 Bern. But some analysts believe the final figure might be as little as 443 Bern, the lowest in company history. Gas exports fell 4% to 197.2 Bern, although the ministry forecasts they could rebound by 5% in 2015 to 207.3 Bern after shipments to Ukraine resumed in December following a six-month halt.