Gazprom to Push Domestic Gas Market as External Flows Slump

Gazprom will discuss the development of the domestic gas market amid lowered external demand at an internal meeting on December 27.

• "The agenda of board of directors’ meeting includes the forecast for the development of the domestic gas market and its derivatives amid reduced external demand," the company said in a statement.
• Russia’s gas production has been hammered by a lack of flows into the European market this year and an inability to direct the lost volumes to new markets. Gazprom’s H1 December gas production was 27% down y-o-y.
• Progress has been made this week to develop parts of the Power of Siberia network in Eastern Siberia, central to plans to develop China as a key outlet for Russian gas in the years ahead now the European market has marked its intent to source alternatives.
• Europe may have largely moved away from piped Russian flows but demand remains strong for Russian LNG cargoes.