Gazprom Halts Purchases from Independent Gas Suppliers

Reuters reported that as of Monday, Russia-based Gazprom has put purchases of gas from independent producers on hold due to output cuts and growing oversupply.

As quoted in the market news:

“Today the gas market in Russia has an excess of resources over demand. In this situation we are looking at cuts to gas intake from independent producers,” Gazprom’s deputy head of marketing and liquids processing, Alexander Mikheyev, told a conference call on Monday.

Analysts said Gazprom was acting to preserve its own output by forcing so-called independents – oil companies and other suppliers outside the Gazprom group – to leave gas in the ground instead of pursuing ambitious growth plans at Gazprom’s expense.

Click here to read the full Reuters report.