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 ensures necessary gas supply - Letter to the Financial Times

Published: February 17 2011

From Mr Sergei Kuprianov.

Sir, Mikhail Korchemkin (Letters, February 11) questions the economic rationale of Gazprom’s Sokhranovka-Oktyabrskaya pipeline. Mr Korchemkin misses a number of relevant points.

The fact that Gazprom constructed a pipeline that circumvents Ukraine to bring Russian gas to Russian consumers in the south of the country is by no means uneconomic. First, the return on investment is more than convincing – 12 per cent a year. Second, Mr Korchemkin’s suggestion that Gazprom could save money by sticking to a transit system that is not always reliable reflects a rather short-sighted view that disregards the interests of Gazprom’s shareholders and customers.

The gas transit crises in early 2006 and especially in 2009, when Ukraine shut down its transit system, preventing Russian gas from reaching our European customers, made clear how exposed Gazprom – and Europe – were to transit risks in third countries. The three weeks of shutdown in 2009 cost our company $2bn. Ensuring security of gas transit by investing in the diversification of our supply routes, be it through the South Stream project, or the Sokhranovka-Oktyabrskaya pipeline, is not only economically sound, but absolutely necessary.

Finally, following Mr Korchemkin’s logic, the European Union’s political drive to support the construction of new pipelines and interconnectors on the national energy markets would also qualify as “uneconomic”.

I wonder whether he would be equally critical of these multibillion programmes with uncertain economic perspectives and lack of guaranteed supplies?

Sergei Kuprianov,


OAO Gazprom,

Moscow, Russia



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