Russian Gazprom sees its gas production in 2021 increase by 55 billion m3

A logo of Gazprom Transgaz Tomsk is pictured at the Atamanskaya compressor station, a facility of Gazprom’s Power of Siberia project outside the far eastern town of Svobodny in the Amur region, Russia November 29 2019. Picture taken November 29, 2019. REUTERS/Maxim Shemetov .

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MOSCOW, Aug 31 (Reuters) – Russian gas giant Gazprom (GAZP.MM) said on Tuesday it expects its 2021 production to rise by 55 billion cubic meters (bcm) to more than 510 bcm due of a fire at its factory in northern Russia. would only have a limited impact on production.

Gazprom has been buoyed by record natural gas prices in Europe this year as the economic recovery from the impact of the pandemic boosted demand.

Its second-quarter net income more than tripled from the year-ago period, and its gas production in 2021 will hit a 10-year high. Read more

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A unit at the Urengoy plant, a gas condensate treatment facility that caught fire on August 5, will be restarted in the coming days, while another unit is to be replaced by the end of 2022, Gazprom said on a conference call.

The group’s production of gas condensate, a type of light oil which is then turned into fuel, is expected to remain stable at 16 million tonnes in 2021, Gazprom said.

The accident will have an insignificant impact on production in 2021 and will not affect production in 2022, the company added.

Its gas exports to Europe are expected to reach 183 billion cubic meters in 2021, Gazprom said, adding that the upcoming launch of the Nord Stream 2 gas pipeline – which the company hopes to start very soon – would not have a major impact on its exports in 2021.

The politically charged Nord Stream 2 pipeline will deliver gas from Russia to Germany while bypassing Ukraine, the traditional transit route. It is close to completion. Read more

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Reporting by Vladimir Soldatkin and Oksana Kobzeva; Written by Polina Devitt; Editing by Alison Williams and Barbara Lewis

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