REUTERS
An increase in the supply of liquefied natural gas onto the European market by other producers also played its role.
Russia's gas giant Gazprom has reported losses under Russian Accounting Standards for the first time in its history, having posted RUB 306.231 billion, or US$4.14 billion, in a loss in the first quarter of 2020.
In the same period last year, the company received US$2.7 billion in net profit, Russia's news agency Interfax reported.
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"Seasonality is very important to Gazprom as a supplier of energy resources," the agency said. "Therefore, the first and fourth quarters during winter are the most significant ones in the company's annual cycle."
The concern for the gas producer was the abnormally warm winter along with full European storage facilities where the company was actively pumping gas to improve statistics for 2019.
An increase in the supply of liquefied natural gas (LNG) onto the European market by other producers also played its role.
In aggregate, a sharp excess of supply over demand led to a record decrease in the price of natural gas, the Rosbalt news agency said, citing Lenta.ru.
It was previously reported that Gazprom projected that the price of natural gas in 2020 will be US$133 per 1,000 cubic meters with a possible drop to US$70 in summer, but the COVID-19 coronavirus pandemic became another serious blow.