Gazprom ups natural gas estimate

MOSCOW, June 14 (UPI) -- Russian energy giant Gazprom said it could produce 670 billion cubic meters of natural gas by 2020, increasing its estimate by 14 percent.

"If the market situation is positive or very positive, we could reach this production level," said Alexander Ananenkov, Gazprom deputy board chairman.

Ananenkov said total natural gas output in 2010 is planned at a maximum of 560 billion cubic meters, but could be increased to 570 billion cubic meters if needed, Novosti reported Thursday.

He estimated the value of the company's hydrocarbon reserves at $182.5 billion, not including oil subsidiary Gazprom Neft, whose reserves are worth $24 billion.

Natural gas output at the Shtokman natural gas deposit off Russia's Arctic coast could reach 94 billion cubic meters a year, Ananenkov said. The Shtokman field has an estimated 3.2 trillion cubic meters of natural gas and another 31 million metric tons of gas condensate in the Barents Sea, where Gazprom plans to build a liquefied natural gas plant.

Gazprom will invest between $12 billion to $14 billion the project's first phase. Production is scheduled to begin in 2011.