Russia Cuts Gas Output Forecasts Amid Ongoing Conflict with Ukraine
Russia's economy ministry has revised down its natural gas production and export forecasts for this year, citing the ongoing conflict with Ukraine as a major factor. According to a draft government document seen by Reuters, Russia expects to produce 683.1 billion cubic meters of natural gas in 2023, which is 5.3 billion cubic meters lower than previously forecast. This revised projection comes despite Moscow's claims that it is ready to restart gas supplies to Europe via the Nord Stream pipelines.
The document also states that exports of seaborne liquefied natural gas from Russia are expected to rise to 35 million tons in 2023, but this is still lower than previously forecast. LNG exports are projected to continue rising in coming years, albeit at a slower pace.
Russia's gas exports to Europe plummeted by 44% last year to just 18 billion cubic meters, the lowest level since the mid-1970s, following the closure of the Ukrainian transit route. The Kremlin has maintained that Europe is 'hurting itself' by buying expensive gas on the spot market instead of opting for cheaper Russian supplies.