Ukraine's leading English-language newspaper since 1995

Gazprom is prepared to produce 289.2 billion cubic meters of gas during the 2009/2010 winter season, 10.6% more than last winter, the Russian gas giant said in a press release.

Gazprom produced 261.6 bcm in the 2008/2009 season. It initially planned to produce 296 bcm last winter, but cut production due to falling demand and due to the gas dispute with Ukraine.

It is the lowest winter production target since 2005/2006, when Gazprom planned to produce 288.67 bcm. However, actual production that winter exceeded plan by 5.5 bcm due to the colder than average weather.

The weather is the key factor in gas production and sales. The underground storage facilities are mainly responsible for buffering fluctuations in demand. This year Gazprom decided to halt its program for expanding capacity in the underground storage facilities in light of falling demand, maintaining the operational inventories at the beginning of the heating season at 64 bcm. Previously Gazprom had boosted storage capacity by 0.5 bcm each year.

The Gazprom management board examined the Unified Gas Transportation system's readiness to handle peak loads in the 2009-2010 season. It noted overall that the system was ready for the fall/winter season. Management will subsequently report to the board of directors on the matter.