Gazprom capacity allows for pumping 620 Bcm this year: deputy CEO

Moscow (Platts)--13Jun2006

Russia's gas giant Gazprom is able to produce 620 billion cubic meters
per year this year, if there is a demand for this amount of gas, the company's
deputy CEO Alexander Ananenkov said Tuesday, following earlier concerns by IAE
about a looming shortage of Russian gas for supplies to Europe.
"This is the capacity which we have reached this year but of course (the
output) will depend on the market demand," he said adding that Gazprom's
production target for this year is 548 Bcm.
Ananenkov said that Gazprom's total reserves estimated at 29.1 trillion
cu m as of the end of 2005 allowed Gazprom to produce up to 900 Bcm/year. "The
production is only limited by the market capacity. If the market shows a
rising demand and we see it, we will swiftly react to increase output," he
said. "These corrections are possible and we can speed up the development of
resources."
Gazprom's proven reserves stood at 20.7 Bcm as of Dec 31, 2005, under an
evaluation conducted by independent auditors DeGolyer & MacNaughton.
Based on the company's forecast for gas demand, Gazprom plans to produce
560 Bcm/year by 2010, 580- to 590 Bcm/year by 2020, and 610- to 630 Bcm/year
by 2030.
Ananenkov also said that gas reserves replacement ratio had increased to
88% in 2005, up from 25% in 2002. This year the company aims at replacing 100%
of reserves or 600 Bcm, he said.
--Anna Shiryaevskaya, anna_shiryaevskaya@platts.com
--Nadia Rodova, nadia_rodova@platts.com

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