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Gazprom has canceled
over
100 tenders for rehabilitation works at pipelines, compressor
stations, pipeline river crossings and gas storage facilities. In
the last decade, the Russian gas monopoly has significantly improved
the reliability of its pipeline system. The number of pipeline
failures in 2012 was nearly
three times lower than in 2002-2003. The lack of proper
investment can reverse the trend.
Apparently, Gazprom is
trying to generate enough cash for the
multibillion South Stream project.
The company never borrows money for the construction of pipelines
inside Russia because Gazprom executives do not want to attract
banks' attention to the cost of Russian projects.
Notably, South Stream
is designed to divert the export flows from a relatively inexpensive
route through Ukraine to the most expensive one via the Black Sea.
Therefore the project will cut the shareholders' profits and reduce
the competitiveness of Russian gas in Europe. It turns out that the
price of South Stream may also include a lower reliability
of Russian gas pipeline system.
Mikhail Korchemkin
East European Gas
Analysis
Malvern, PA, USA
November 27, 2013
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UPDATE: |
According to
Russian business-daily Vedomosti, Corporate Costs Department of Gazprom
complains that there are too many tender applications from
inexperienced small companies offering "dumping prices".
Gazprom prefers the rehabilitations
works to be done only by four dedicated companies -
Stroygazmontazh,
Stroytransgaz,
Gazprom Tsentrremont
and Salavatneftehimstroy. Apparently, the named contractors
never offer their services at "dumping price". |
December
1, 2013
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