Russia forecasts lower gas output for 2026

Russia announced a reduction in its natural gas production forecast for 2026 to 683.1 billion cubic meters, down by 5.3 billion cubic meters from previous estimates in May. Meanwhile, gas exports via pipelines to Europe have continued to decline by 44% since the start of the war in Ukraine, reaching their lowest level since the 1970s. Nonetheless, Moscow anticipates a gradual increase in liquefied natural gas (LNG) exports, with limited growth expected in 2026 to 35 million tons, and growth extending into the coming years, aiming to reach alternative markets outside the European pipeline network. These projections are part of Russia's efforts to compensate for the declining European gas market due to sanctions and the anticipated European ban starting next year, as Moscow continues to resume gas supplies via the Nord Stream pipelines and targets new markets.

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