Russia's Gazprom faces lowest gas output in history

Russian gas producer Gazprom is likely to record its lowest output this year since its creation a quarter of a century ago after cutting supplies to Ukraine and losing market share to domestic rivals.

Gazprom reduced its 2014 production forecast this week, and analysts regard even this figure as overoptimistic due to Moscow’s battle with Kiev over gas prices and its role in the conflict in eastern Ukraine.

Falling output could put further pressure on the economy, which relies heavily on oil and gas sales and is already slowing to a crawl partly as Western sanctions start to bite.

Gazprom chief Alexei Miller told president Vladimir Putin on Wednesday that he expected production this year to be 463 billion cubic metres (bcm), a 6.7 per cent decrease from the 496.4 bcm announced by Gazprom at a May presentation and down from 487.4 bcm produced last year. – Reuters