Russia’s Gas Production Drops in Jan-Feb 2025

Russia’s total gas production, including natural gas and associated petroleum gas, declined by 7.7% y-o-y in the first two months of 2025, amounting to 118.2 billion cubic meters (BCM), according to data from the Russian State Statistics Service (ROSSTAT).

In particular, natural gas output during this period totalled 101 BCM, marking an 8.3% y-o-y decline. In February, production stood at 47.4 BCM, down 11.5% from January 2025 and 12.7% lower than in February 2024.

The production of liquefied natural gas (LNG) in these two months amounted to 5.7 million tonnes, reflecting a 4.4% decrease compared with the same period last year.

In February, LNG output reached 2.7 million tonnes, down 5.9% y-o-y and 11% lower than in January 2025. Even the extraction of associated petroleum gas in January-February fell by 4.2% to 17.3 BCM, ROSSTAT figures showed.

Gas Production Forecasts

Earlier, Russian Deputy Prime Minister Alexander Novak reported that in 2024, Russia increased gas production by 7.6% to 685 BCM, driven by rising exports, higher domestic demand, and the expansion of the petrochemical industry. Last year, Russian pipeline gas exports grew by 15.6% to 119 BCM, while LNG exports rose by 4% to 47.2 BCM.

Novak also said that at the same time, the government was planning to further ramp up gas production in 2025.

According to the baseline forecast of the Ministry of Economic Development, gas production in Russia is expected to rise to 695.4 BCM in 2025 and to 709.1 BCM in 2026. Novak also said that the government was maintaining its gas production forecast for now, but the figure is likely to be adjusted.

It may be recalled that the International Energy Agency (IEA) has previously estimated Russia’s gas production growth in 2024 at 7%, reaching 682 BCM. The IEA also raised its projection for Russia’s gas output in 2025 to 693 BCM (+1.6% y-o-y), up from the previously expected 687 BCM.

Exports to Hungary

Novak, who held discussions with Hungarian Foreign Minister Peter Szijjart on Wednesday, said that Russia supplied 4.78 million tonnes of oil to Hungary via the southern branch of the Druzhba oil pipeline in 2024 and 956,000 tonnes in January-February 2025.

Novak emphasised a commitment to dependable energy supplies for Budapest and willingness to make every effort to ensure that supplies to partners remain undisrupted and predictable. Russian supplied a record 8.6 BCM of gas to Hungary in 2024, and 1.18 BCM as of 1 March 2025.

“This result not only indicates a high degree of coordination, but also demonstrates our common commitment to energy security,” Novak said.

On his part, Szijjarto said that he discussed the activities of Hungarian oil company MOL in Russia with the Russian leader.

The MOL’s operations in Russia have been very successful, which opens up the opportunity to expand its presence in Russia, Szijjarto said on social media account.

The MOL group’s sole asset in Russia is the BaiTex oil production project at the Baituganskoye field in the Orenburg region. The Hungarian company controls 51% of it through the MK Oil and Gas B.V.