Novak said in his annual interview to state broadcaster Rossiya 24:
- We expect to reach the level from which we began to cut output by May, and our industry will produce 540 million-550 million mt next year
Novak expects global oil demand to fully recover to the pre-pandemic level by the end of 2022:
- Demand will continue to recover as it is growing in the world even though the pandemic has not gone anywhere and still comes in waves, but countries have learned to live with it
Oil prices will likely remain at the same stable level in 2022, Novak said, as the market remains balanced and there were currently no risks to substantially impact the price.
- We see the current level of $75/b as quite stable
- Plus or minus 10%, such parameters may remain the next year, I do not see what risks can lead to serious deviations
Nord Stream 2
In 2021, Russia's gas production will rise 10% on the year, Novak said, while exports will increase by 9.5%.
According to the energy ministry's data, Russia's gas production totaled 692.9 Bcm in 2020, down 6.1% from 2019 levels.
At the same time, Novak expressed hope that the certification process of the now-completed 55 Bcm/year Nord Stream 2 pipeline will be completed in the middle of next year to ease the pressure of high gas prices.
The pipeline's second string will be filled with gas to build the required inventory and pressure by the end of December, Gazprom said Dec. 23, but commercial operations can not begin without regulatory clearance.
In mid-December, the German energy regulator said there would be no final decision on the certification of the operator of the pipeline in the 1st half of 2022.
- Given their will, the process can be completed earlier
- Everything that is happening regarding Nord Stream 2 is very surprising, since there is an adamant confrontation for the infrastructure that has already been built to start operating
Russia forecasts gas prices to remain high in 2022 due to the balance of supply and demand, which could also be affected by weather conditions and storage levels, Novak said.