Reuters reported that Russia Gazprom will cut gas output in 2009 by 13.8% to the lowest in history on low demand at home and in Europe and much lower demand in the former Soviet Union.

The world largest gas producer which supplies a quarter of Europe gas needs will produce 474 billion cubic meters in 2009 with exports to Europe expected to fall by 10% to 142.5 billion cubic meters.

The company has previously only given a range of expected production falls in 2009 saying it could fall as much as 18%.

Gazprom state controlled board will meet later on Wednesday to discuss key financial and production targets. The firm declined immediate comment following Vedomosti report which also said the biggest fall in supplies this year will be to countries of the former Soviet Union, which will import 30% less gas, or 56 billion cubic meters.

Supplies to Russian customers will also fall by 11% to 268.4 billion cubic meters.

Gazprom has previously said its investment program for 2009 will fall by a quarter from the initial plan to around RUB 760 billion and Vedomosti said every major project will undergo a cut in investment this year.

(Sourced from Reuters)