Gazprom pipelines and export capacity

Газопроводы Газпрома и экспортные мощности

Gas pipelines of West Siberia

Газопроводы Западной Сибири

Export flows of Gazprom

Экспортные потоки

Spot, Gazprom, Brent

Цены на нефть и газ

End-use price of gas

Russia and USA

Daily gas production

Суточная добыча


Nord Stream: Russian land section nearly three times more expensive than German OPAL


In May 2010, the cost of 1 km of the Gryazovets-Vyborg Pipeline (GVP) is already 50% higher than that of the OPAL project, and the Russian pipeline is not finished yet. In 2012, when the Russian land section of the Nord Stream pipeline is completed, its cost is likely to reach EUR 5.8 million per 1 km, compared with EUR 2.1 million of the German OPAL.

Table 1. Gryazovets-Vyborg Pipeline Annual Investment and Cost per 1 km of Single Line

Year

RUR bn

EUR bn (1)

EUR mill / km

Source / comment

2006

19.8

0.6

-

Gazprom press-release

2007

26.8

0.8

-

Bond Prospectus, March 6, 2007

2008

21.9

0.6

-

Bond Prospectus, March 26, 2008

2009

39.3

0.9

-

RBK-Daily (2)

Sub-total investment in 2005-2009:

107.7

2.8

3.1

Single line (3)

2010

35.0

0.9

-

Estimated

2011

35.0

0.9

-

Estimated

2012

25.0

0.6

-

Estimated

Total investment in 2005-2012:

202.7

5.3

5.8

Single line, excluding CS Portovaya (3)

Cost of OPAL project (470 km)

-

1.0

2.1

OPAL in Figures

(1) At the average exchange rate of the corresponding year and at RUR38.63 per EUR1.00 for 2010-2012.

(2) Initial annual investment was set at RUR35.6 bn (Bond Prospectus, April 9, 2009).

(3) Cost per 1 km is calculated as the total investment divided by 917 km.

Major part of the 917-km long GVP is being constructed in the right-of-way of the Gryazovets-Leningrad and Leningrad-Vyborg-State border gas pipelines. The first line commissioning is scheduled for 2011 (see page 3). Full compression of the first line will be reached by Q4-2012. Pikalevskaya compressor station (CS) will be completed in May 2012 and CS Babaevskaya in Q3-2012. CS Portovaya, that will be commissioned in Q4-2012, is excluded from Table 1 for the sake of comparison with the OPAL project.

Note that in November 2005, Gazprom reported the cost of construction of 144 km of GVP at RUR 19.84 billion (EUR 0.6 billion). It corresponds to the cost of EUR 4.0 million per 1 km of pipeline, excluding compression expenses.

GVP and OPAL have similar design and capacity. However, it takes nearly three times less money to build 1 km of 1420-mm pipeline in Germany than in the vicinity of St. Petersburg, Russia.

Mikhail Korchemkin

May 4, 2010

Malvern, Pennsylvania, USA


Last modified: 12/07/14                    East European Gas Analysis 2006-2014                                           Email: info@eegas.com
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