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


Pipeline construction plan of Gazprom exceeds the requirements


Pipeline construction plan of Gazprom indicates that in the future, the monopoly is likely to buy all gas produced by Russian independents at discounted price or to take the independent production under its control. All players of the Russian gas market could benefit from independent gas pipelines.

Table 1. Gas production plan of Gazprom, bcm

Production region

2006

2020

Total production, including

556

650-670

- Shtokman

-

70

- Russian Far East and East Siberia, including(*)

-

55

- - - Sakhalin-2 (share of Gazprom)

-

7

- - - Sakhalin-3

-

25

- - - Kovykta (*)

-

12

- - - Chayandinskoe (*)

-

12

- Other regions linked by Gazprom pipelines

556

525-545

(*) Minimum level.

Source: Gazprom.

  • In 2020, Gazprom plans to supply about 30 bcm/year of gas from the Shtokman field in the Barents Sea to Northwestern Russia via the Murmansk-Volkhov pipeline. This gas will feed the second line of the Nord Stream project.

  • In 2020, in other areas linked to the Unified Gas Pipeline System of Russia (UGPS), Gazprom will produce less gas than in 2006. 

    • Except Shtokman, all incremental supply of gas to the UGPS through 2020 will be provided by independent producers and oil companies.

    • The record daily gas flows of January 2006 showed that the capacity of existing pipelines of the UGPS is well above Gazprom's production target for 2020.

  • Gazprom is going to create a new 2400-km pipeline route from the Bovanenkovo gas field in Yamal to Ukhta and Torzhok in Northwestern Russia.

    • The existing pipelines of Nadym-Pur-Taz region in West Siberia will be freed for the independent gas.

  • The multibillion-dollar investments into the pipelines Bovanenkovo-Ukhta-Torzhok and Bovanenkovo-Ukhta-Petrovsk can be profitable only if Gazprom buys all independent gas at discounted price or takes the independent production under its control.

    • Knowing that, the independents are unlikely to increase gas production, which would result in a substantial spare pipeline capacity in West Siberia.

  • A shorter 550-km route from Bovanenkovo to Yamburg can deliver all Yamal gas to the UGPS. The capacity of existing pipelines in West Siberia exceeds the production target of Gazprom by far.

  • Construction of independent pipelines from Nadym-Pur-Taz region to European Russia looks more logical and beneficial for all participants of the Russian gas market.

    • Access to sales of gas at the market price would provide an incentive for the independent producers to increase gas production.

    • Gazprom would save a lot of money.

    • There would be more gas in the Russian market.

    • Independents are likely to have lower pipeline construction costs than Gazprom.

  • Commissioning of just one independent pipeline by 2011 can solve the West Siberian capacity bottleneck and eliminate the need to build the Bovanenkovo-Ukhta pipelines.

    • Independent pipeline could be a good example of successful synchronization of gas projects of the Russian independents and Gazprom.

  • Gazprom could be a minority shareholder of the independent gas pipeline and its operator.

Mikhail Korchemkin, ceo

July 18, 2008


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