MOSCOW- 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 on Tuesday.

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.

Natural gas exports from Gazprom to Europe, including Turkey, fell 18% in the first half of the year to 78.94 bcm as gas demand was depressed by the coronavirus crisis.

The decline in exports to Turkey has been particularly pronounced, at more than 40%.

Komlev said the company expects its gas exports to Turkey to rise, but the subsequent increase is unlikely to offset the previous decline by the end of this year.

Gazprom also started gas supplies to China in December via the Power of Siberia pipeline from eastern Siberia. It plans to raise gas exports to the country to 38 bcm by 2025 and has been in talks with China on additional gas supplies via other routes.

Speaking at the same event, Anton Demchenko, in charge of Gazprom's relations with investors, said the company plans to stick to its dividend policy.

He also said that the 150 billion roubles ($1.9 billion) of perpetual bonds the company plans to issue to finance its 530 billion rouble five-year programme to supply gas to Russian households will not increase the company's debt. ($1 = 79.0300 roubles)

(Reporting by Vladimir Soldatkin and Olesya Astakhova Editing by David Goodman) ((vladimir.soldatkin@reuters.com; +7 495 775 12 42;))