Leonid Mikhelson, the chairman of Novatek's Executive Board, said gas production in 2010 will hit 750 bln cu m. Gazprom [RTS: GAZP] will produce 570 bln cu m, or 76% of the total, and by 2015 the state-controlled giant will raise its output to 618 bln cu m.
Independent companies could account for 24% of total production in 2010, extracting 180 bln cu m of natural gas annually. In 2015, their share could expand to 27.9%, or 240 bln cu m per year, the head of Novatek said.
Mikhelson also said domestic gas prices could rise from the current $45.3 to $110-$120 per 1,000 cu m in 2010 and to $130-$140 in 2015.
Novatek, the country's second largest gas company, produces most of its gas in Western Siberia's Yamalo-Nenets Autonomous Region.
Russian daily Kommersant reported earlier that gas prices in Russia will not grow until the presidential elections in 2008, although the Industry and Energy Ministry and electricity monopoly Unified Energy System proposed at a meeting with the president October 19 to increase the gas price to $80 as of next year.
In 2009, the gas price will jump to $90 per 1,000 cu m, the newspaper said, citing sources in the Kremlin and the economics ministry.
Mikhelson said 78% of natural gas produced in the country will be sold via free markets by 2015, and 22% at state-regulated prices.
The businessman, a major stakeholder in Novatek, said that knowing the precise price limits for 2010-2015 in advance are essential to secure investment in new deposits.
"The government should give precise parameters for how much gas will cost in 2010-2015, as the development of deposits requires considerable investment and a clear vision of how investment could be recouped," Mikhelson said.
President Vladimir Putin is expected to hold a meeting this week to discuss the country's fuel and energy balance and gas consumption at power plants.
Arkady Dvorkovich, the Kremlin's chief expert, said earlier the country is not facing a gas deficit, but that the Industry and Energy Ministry predicts a deficit as early as next year.
The ministry said gas demand from the Russian economy currently stands at 729.9 bln cu m, exceeding supply by 4.2 bln, according to the business daily Vedomosti. The ministry says the deficit will continue growing in coming years.
But Dvorkovich said the president-led meeting is only needed to reconcile ministries and experts advocating differing strategies in the energy sector.
"There are differing positions on what is more profitable - exporting gas or using it in electricity production, or processing it," he said.
Russia, which has the world's largest natural gas reserves, is also a leading gas exporter, supplying more than 20% of Europe's demand. The country, which owes much of its recent economic growth to high energy prices on world markets, has moved to reassure consumers that it is a reliable supplier.
