Russian Gas Production Decreased 7.3% in January-February

Russian gas production in February fell by 11.3% compared to the same level last year, which is even more than the 3% year-on-year decrease of in January. 

In absolute volumes, Russia produced 57.2 billion cubic meters (2 trillion cubic feet) in February.

“According to the results of the first two months, 131 billion cubic meters (4.6 trillion cubic feet )of gas were produced,” Russian media outlet Kommersant wrote, citing sources familiar with the Ministry of Energy statistics.

“The level of production is affected by the halt of Russian gas transit through Ukraine on Jan. 1, through which the Russian Federation exported about 15 billion cubic meters [530 cubic feet] of gas per year,” the report says. 

On Jan. 1, Ukraine halted the transit of Russian gas to Europe through the Druzhba, Soyuz and Yamal-Yevropa pipelines. The names of these pipelines – drawn from Soviet-era words meaning “friendship,” “union,” or “brotherhood” – are, in all their irony, the remnants of the former 60-year-old gas transit friendship.

The last 41 million cubic meters (1.4 trillion cubic feet) of Russian gas flowed through Ukrainian pipelines on Dec. 31, 2024, according to Ukraine’s Gas Transmission System Operator (GTS) data.

Currently, Russia is only using its one remaining pipeline route to Europe – the Turkish Stream with a capacity of just under 16 billion cubic meters (565 cubic feet) per year, while also supplying Europe with gas as LNG. 

Other Topics of Interest

SBU, HUR, and SSO Joint Drone Strike Cripples Tamanneftegas Terminal

The Security Service of Ukraine (SBU), in a joint operation with the Special Operations Forces (SSO) and the Main Directorate of Intelligence (HUR), carried out a drone strike against the “Tamanneftegas” terminal in Krasnodar Krai. Acting on operational objectives set by Volodymyr Zelensky, Ukrainian long-range drones struck five petroleum storage tanks, two marine loading arms, and adjacent logistics infrastructure.

But during the last two months, all gas companies in Russia decreased their production, according to Kommersant: 

• State-owned Gazprom’s figures, fell by 13.2% year-on-year in February, 8% over the two months.
• Gazprom’s subsidiary Gazprom Neft decreased gas production in February by 8.3%, and over two months by 5%.
• The largest privately-owned company Novatek reduced production in February by 1.5%, 1.4% over two months
• Lukoil’s production fell by 13.3%, to 1.3 billion cubic meters (45 billion cubic feet), in February and by 9.7% since the beginning of the year
• Rosneft reduced gas production in February by 14%, mainly due to a 1.5-fold drop in production at Rospan International – the subsidiary that supposedly produces gas for exports only. Over two months, Rosneft reduced gas production by 12%

The main reason for the decline in production remains the reduction in demand against the backdrop of abnormally warm weather and the closure of the export route through Ukraine, the media outlets wrote. 

“A Kommersant source notes that gas consumption is likely also beginning to be affected by a reduction in demand in energy-intensive industries (steel production, construction materials, basic chemicals) due to the slowdown in economic activity in Russia,” the outlet wrote. 

Previously, Director of the European Department of the International Monetary Fund (IMF) Alfred Kammer said the Russian economy is facing high demand with the maximum supply capacity inside the country.