Russia to cut gas supplies in coming years, media reported

MOSCOW, Sep 23 — PRIME. Russia has determined how much gas supplies to the world market will be reduced in the next three years, and these figures underline the scale of the problems that consumers in Europe will face. This was reported by Bloomberg on Friday.

The annual volume of gas exports from Russia in 2023-2025 will fall by almost 40%, to 125.2 billion cubic meters, according to the draft budget, which was at the disposal of Bloomberg. This year, gas exports are estimated at 142 billion cubic meters, according to the document.

The draft budget of Russia does not contain an analysis of the situation on the export market. However, based on historical data and current supplies, Turkey could become Gazprom’s main customer in Europe. Last year, Gazprom delivered 27 billion cubic meters to Turkey.

China could become the second largest buyer of Russian gas next year. The deal between Gazprom and China National Petroleum Corporation (CNPC) provides for a gradual increase in supplies through the Power of Siberia pipeline. In 2023, deliveries through this pipeline are expected to grow to about 21 billion cubic meters from 15-16 billion cubic meters this year.

Taking into account the estimates presented above and annual gas supplies to the countries of the former USSR in the amount of 30 billion cubic meters, about 45 billion cubic meters can be supplied to the European market. This is equivalent to about 123 million cubic meters per day. Currently, Russia exports to Europe about 80 million cubic meters of gas per day.

Meanwhile, Russia expects a slight increase in oil exports, despite the suspension of purchases from Europe. The draft three-year budget assumes that the volume of oil exports next year will be 250 million tons against 243 million tons this year. In 2024 and 2025, 255 million tons and 260 million tons of oil are expected to be supplied to the world market, respectively.

At the same time, the supply of petroleum products in 2023 may be reduced to 113 million tons against the projected 130 million tons this year, the draft budget says.