Russian gas producers agree to cut 2007 output on warm weather
Moscow (Platts)--31May2007
platts.com
Russia's gas monopoly Gazprom and independent gas producers Wednesday
agreed to cut natural gas production this year due to warm weather in a move
that sparked speculation that Russia has started working out a domestic gas
cartel.
Gazprom said Thursday it had revised its production plan for 2007 down
from 561 billion cu m to 557 Bcm. It pumped 556 Bcm of gas in 2006, up by 1
Bcm from the previous year.
"The decision is connected with an abnormally warm winter and a decline
in gas lifting from underground storage," Gazprom said.
Lukoil president Vagit Alekperov said Wednesday independents would
reduce production by up to 8%, without providing absolute figure, Russia's
business daily Kommersant reported Thursday.
The gas production cut will last till the third quarter of the year, he
said.
The managers of the other independent gas producers, TNK-BP, Itera and
Novatek, were also present at the meeting. Independents account for about 16%
of Russia's total gas output.
Gazprom sources told Kommersant that the move was a way to implement
practices "similar to the mechanisms of the [planned] gas OPEC."
A spokesman for Gazprom however denied such intention.
Gas producers that control two thirds of the world's gas reserves agreed
at a meeting in Doha, Qatar in April this year to set up a high-ranking
group led by Russia to study gas pricing, infrastructure and technology.
Although members of the Gas Exporting Countries Forum made no formal
mention of creating an OPEC-type cartel, several ministers said the forum,
which has already agreed to move to a higher level, would eventually develop
into a gas cartel along the lines of OPEC.
--Anna Shiryaevskaya, anna_shiryaevskaya@platts.com |
