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Russia’s Gazprom sees its 2021 gas output up by 55 bcm

Russian gas giant Gazprom GAZP.MM said on Tuesday that it expected its 2021 production to rise by 55 billion cubic metres (bcm) to more than 510 bcm as a fire at its plant in northern Russia would have only limited impact on output.

Gazprom has been supported by record-high natural gas prices in Europe this year as economic recovery from the impact of the pandemic has driven demand.

Its second-quarter net income jumped more than three-fold from the year-earlier period, and its 2021 gas output will reach a 10-year high.

One unit at the Urengoy plant, a gas condensate processing facility that caught fire on Aug. 5, will be relaunched in coming days, while another unit is due to be replaced by the end of 2022, Gazprom told a conference call.

The group’s production of gas condensate, a type of light oil that is further processed into motor fuels, is expected to remain flat at 16 million tonnes in 2021, Gazprom said.

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

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

The politically-charged Nord Stream 2 pipeline will take gas from Russia to Germany while bypassing Ukraine, the traditional transit route. It is close to completion.
Source: Reuters (Reporting by Vladimir Soldatkin and Oksana Kobzeva; Writing by Polina Devitt; Editing by Alison Williams and Barbara Lewis)

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