Gazprom PJSC’s natural gas production has dropped 10.4% since January, dragged down by a steep cut in pipeline exports to Europe, which have fallen by 33.1% so far this year. The company has boosted exports to China. 

Russia produced 249.7 billion cubic meters (Bcm) between Jan. 1 and July 15, down by 29.1 Bcm compared to the same period last year, according to preliminary estimates released by the state-owned company this month. Gas exports to countries outside the former Soviet Union were 71.9 Bcm, or 35.6 Bcm less than the same period last year. 

“A 10% drop in production is quite stark. Provided Russia maintains its low pipeline deliveries to Europe and as domestic storage sites get filled, this could result in an acceleration,” Kpler energy analyst Laura Page told...