Russian Gazprom expects US shale gas production to decline

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Logo of the Russian company Gazprom in an image from the Reuters archive.

MOSCOW (Reuters) – The Russian gas giant expects a decline in production of shale natural gas in the United States, the largest producer of natural gas in the world, because of weak prices, a director of Gazprom said on Friday.

Oleg Axiotin, Gazprom’s deputy chief executive, told the company’s internal magazine that US shale gas producers would start cutting production in the “near future”.

He added that the decrease in production is justified by the decline in the prices of natural gas in Henri Hebb, the standard delivery point in Louisiana, to the level of $ 85 per thousand cubic meters.

The director at Gazprom said that prices there averaged $ 76 per 1,000 cubic meters in January.

He added that weak crude oil prices may have a negative impact on natural gas prices.

Moataz Mohamed prepared for the Arab publication





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