KEY POINTS
- Gazprom’s output rose by 61 bcm from 2023’s record low.
- Gas exports to China reached 31 bcm, exceeding projections.
- Local gas supplies hit an all-time high of 390 bcm.
Russia’s energy leader Gazprom forecasts an increase in natural gas production, reaching approximately 416 billion cubic meters (bcm) in 2024. This marks a 61 bcm rise from its all-time low in 2023, when geopolitical tensions and reduced European exports caused a sharp decline.
Gazprom’s head, Alexei Miller, highlighted the company’s strategic pivot to alternative markets. Gas exports to China surged to 31 bcm this year, surpassing the original 30 bcm target, though negotiations for the Power of Siberia 2 pipeline expansion continue to face pricing hurdles.
Domestic demand drives record-breaking supply levels
As relations with Western nations remain strained, Gazprom has shifted focus to the domestic market and neighboring ex-Soviet states, including Kazakhstan, Uzbekistan, and Kyrgyzstan. Domestic gas supplies reached an unprecedented 390 bcm in 2024.
According to Reuters, the company is adapting to a rapidly changing landscape, fueled by rising local demand and increasing reliance on Asian markets.
Despite these challenges, Gazprom maintains its commitment to stabilizing its production levels and meeting regional energy needs.
Challenges and opportunities in a shifting energy market
While Gazprom celebrates gains in production, challenges persist. Talks with China over expanded pipeline usage have stalled, primarily due to pricing disputes.
Meanwhile, geopolitical conflicts continue to reshape global energy trade routes, limiting access to previous markets.
Nevertheless, Gazprom is exploring ways to further solidify its position in the domestic and Asian markets. The company’s robust performance in 2024 signals resilience amidst a volatile global energy market.
