Gazprom cuts 2013 output forecast at Bovanenkovo field
BY JAMES MARSON
MOSCOW -- Russian gas firm Gazprom has cut its forecast for gas output at its giant Bovanenkovo field by almost one-third because of lower demand, the head of Gazprom's production department said Tuesday.
Production of natural gas at Bovanenkovo, which began in October last year, was planned to hit 46 Bcm in 2013. But Vsevolod Cherepanov told reporters Tuesday it would only notch 29.5 Bcm.
State-controlled Gazprom is suffering from waning demand in Europe, its key market, and increased competition from LNG and cheap coal. Bovanenkovo on the Yamal peninsula in Russia's Arctic is aimed at feeding the European market.
Gazprom's output fell 5% last year as it also lost domestic market share amid increased competition from other firms, such as Novatek.
The company said, however, that its gas production would rise to 496 Bcm of gas this year from last year's 487 Bcm.