Russian gas giant Gazprom expects its gas exports to Europe, the key source of the state-owned company’s revenue, to reach at least 170 billion cubic metres (bcm) in 2020, compared with 199 bcm in 2019, a company manager said, according to Reuters.

Gazprom is facing challenges in the European gas market, where it accounts for a third of the region’s supplies, which also include Norwegian gas and sea-borne liquefied natural gas (LNG) exports from the United States.

Sergei Komlev, in charge of pricing at Gazprom’s exporting arm, also told an online conference that the company’s average gas price in Europe is expected to be close to $130 per thousand cubic metres this year.

Russian gas major Gazprom has reported a 12.4% year-on-year decrease in gas sales volumes during the first six months of the year.