Gazprom pipelines and export capacity

Gas pipelines of West Siberia

Export flows of Gazprom

Gas Prices


Comments on Key Events in the Gas Business of Russia and the FSU


March 29, 2018

Power of Siberia investment cost unaffected by the reduction of pipeline length


January 21, 2018

Base-load flow of Nord Stream vs peak-load flow via Ukraine


September 28, 2017

Gas production cost at $33.84/mcm


June 21, 2017

Gazprom has about 3 Trillion Rubles in assets under construction


March 6, 2017

Nord Stream AG revenue not related to the volume of gas delivered to Germany


January 24, 2017

Gazprom "streams" designed to kill gas transit business in Eastern Europe


January 21, 2017

Gas production cost stable at $0.9/MMBtu


December 14, 2016

Nord Stream cannot replace Ukrainian transit


October 19, 2016

Security disadvantage of Nord Stream


September 15, 2016

Gas production cost goes up to $0.9/MMBtu


August 21, 2016

TurkStream to increase competition in Balkan markets


August 10, 2016

Gas production cost drops to $0.7/MMBtu


August 1, 2016

Gazprom prefers more expensive export routes


June 23, 2016

"Russian BTU" is smaller than the standard one


June 21, 2016

Nord Stream 2 follows the South Stream track


June 7, 2016

A mess of conversion factors


June 3, 2016

Gazprom reports both successful project synchronization and colossal spare capacity


May 31, 2016

Deputy head of Gazprom questions the U.S. LNG delivery to Portugal


May 17, 2016

Winter exports depend on the weather and the mood of Vladimir Putin


May 16, 2016

France mulls using selective approach to fracking


May 3, 2016

Price of gas in Europe declines faster than export cost of Gazprom


April 29, 2016

Gazprom reports 2015 gas production cost at $0.84/MMBtu.


March 21, 2016

Nord Stream Transportation Cost for Dummies


March 3, 2016

Gazprom unable to win a price war


February 28, 2016

Q3-2015 gas production cost at $0.85/MMBtu


December 24, 2015

Star Wars - Gas Wars card


December 23, 2015

Season's Greetings - hand-made card


September 21, 2015

Q2-2015 gas production cost at $1.0/MMBtu, export price at $8.0/MMBtu


September 16, 2015

Gazprom too optimistic about price of gas


September 14, 2015

Gazprom and Romania - The Fox and the Grapes


August 24, 2015

Q1-2015 gas production cost at $0.8/MMBtu, export price at $8.9/MMBtu


May 7, 2015

Ukraine Freedom Support Act may stop the Turkish Stream project


April 24, 2015

Q3-2014 gas production cost at $1.5/MMBtu, export price at $10.0/MMBtu


January 19, 2015

Gazprom to report the worst 4th quarter of this century.


December 24, 2014

Season's Greetings - hand-made card


November 19, 2014

Gas math of Vladimir Putin doesn't work with his own numbers


November 2, 2014

On direct supplies of Russian gas to Eastern Ukraine.


October 31, 2014

Conversion factor puzzle of Gazprom


September 29, 2014

Will Russia decide to start gas war with Europe?


September 11, 2014

Q1-2014 gas production cost reported at $1.2/MMBtu, export price at $11.6/MMBtu.


August 31, 2014

Power of Siberia construction cost of Rub 770 Billion.


August 18, 2014

Gazprom reports contradicting conversion coefficients.


July 15, 2014

Gazprom is paying much less taxes than Russian oil producers.


May 17, 2014

On Russia's subsidies to Ukraine calculated by Vladimir Putin


May 13, 2014

Least expensive option to bypass Ukraine was abandoned in 2002.


May 9, 2014

Gazprom gas production cost at $1.2/MMBtu, average export price at $11.9/MMBtu.


April 7, 2014

EU could survive loss of Russian gas flow through Ukraine


April 2, 2014

"Wages of wickedness" in pipeline construction costs of Gazprom.


March 2, 2014

Gazprom may be seriously hurt by the Crimean conflict.


February 28, 2014

Map of major gas pipelines of Russia and Ukraine.


January 23, 2014

Gazprom gas production cost at $1.3/MMBtu, average export price at $11.9/MMBtu.


December 9, 2013

Gazprom raises the South Stream cost to over € 56 Bn.


November 27, 2013

Gazprom reduces pipeline rehabilitation works.


November 17, 2013

Ukrainian gas transit flows 44 percent below the level of 2008.


November 14, 2013

Gas production cost of Gazprom exceeds $41/mcm.


August 19, 2013

Export price reported at $12.6/MMBtu.


June 23, 2013

Putin puts a limit on the growth rate of monopoly tariffs.


June 21, 2013

Nord Stream export route is much more expensive than the old route via Ukraine.


June 3, 2013

Gazprom reports low incremental value of gas transportation assets.


May 1, 2013

Severance tax raises 2012 gas production cost of Gazprom.


April 23, 2013

Does Gazprom threaten war over the Trans-Caspian Gas Pipeline?


April 21, 2013

Buying power plants in the EU may make sense for Gazprom.


April 7, 2013

Gazprom plans to export gas only by its own pipelines.


January 31, 2013

Total cost of South Stream with its feeding pipelines to exceed € 50 Bn.


December 24, 2012

Gazprom wants to have full control over transit pipeline in Eastern and Central Europe.


December 7, 2012

Can Russian Gas Exports Stay Profitable? - Conference presentation, IMEMO, Moscow


November 6, 2012

Gazprom reports growing costs at decreasing gas sales.


November 2, 2012

Gas production cost hits the record level of nearly $40/mcm.


October 8, 2012

EU to benefit from Nord Stream extension to the UK.


September 28, 2012

TANAP vs. South Stream - Presentation at TANAP Conference in Istanbul.


September 6, 2012

Gas production cost is up due to severance tax increase.


July 2, 2012

Gazprom is unlikely to fulfill its transit agreement with Eustream.


June 28, 2012

Tenfold increase of the book value of gas transmission assets of Gazprom.


May 22, 2012

Can Shale Gas Kill Gazprom? - Presentation at UGMS Conference, Berlin


May 3, 2012

Price of gas for Ukraine is not European. It's Romanian.


May 1, 2012

End-use price of natural gas development in the US and Russia.


April 30, 2012

Natural gas is the least taxable hydrocarbon in Russia.


April 29, 2012

Average annul gas production cost of Gazprom is up 20%.


April 23, 2012

Stratfor is incorrect about the dumping price of gas in Russia.


April 12, 2012

Russian and US power plants buy natural gas at the same price.


April 2, 2012

Non-residential price of gas in Russia is very close to the US industrial price.


February 14, 2012

Presidential election, storage capacity and Turkmen gas affected Gazprom exports.


February 1, 2012

Gas production cost of Gazprom is up 38%.


January 12, 2012

Alexey Miller misreports the 2011 performance of Gazprom.


December 28, 2011

2012 - Year of the Pipe


December 18, 2011

Change in the South Stream route gives TAG a chance to stay in business.


December 6, 2011

Alexey Miller overestimates production capacity of Gazprom.


November 17, 2011

Comment on Die Welt interview with Alexander Medvedev.


November 9, 2011

Gas production cost of Gazprom in 2000-2011


September 6, 2011

Share of customs duties in the export sales of Gazprom is steadily decreasing.


August 30, 2011

Gas production cost of Gazprom in 2000-2011.


April 28, 2011

Gas production cost of Gazprom in 2000-2010.


April 8, 2011

South Stream, the idée fixe of Gazprom, can be materialized a less expensive way.


April 6, 2011

South Stream puts Trans Austria Gas Pipeline out of business.


March 9, 2011

Sokhranovka-Oktyabrskaya pipeline has nothing to do with the security of supply.


February 15, 2011

South Stream leads to lower exports and higher costs.


February 10, 2011

Gas production cost of Gazprom hits a new record.


February 4, 2011,

Russia does spend money on uneconomical pipeline projects.


November 24, 2010,

Pipeline project cost estimations of Gazprom get multiplied by a factor of four.


November 14, 2010

South Stream transit in Bulgaria will cost $7.50/mcm per 100 km.


November 10, 2010

Chart illustrating the average gas production cost of Gazprom in 2000-2010.


November 9, 2010

Discounts affect the price of European sales of Gazprom.

Lower Price of European Sales


October 13, 2010

Gazprom wants South Stream to bypass Bulgaria. Ukraine is back in the game.


September 14, 2010

Gazprom is losing European markets because it prefers staying tough.


May 20, 2010

Gas exports to the former Soviet Union are more profitable than sales to the EU.


May 5, 2010

Nord Stream AG claims the pipeline project cost does not include the finance costs of €1.4 Billion. Who will carry these costs during the construction period?


May 4, 2010

Russian land section of the Nord Stream pipeline is nearly three times more expensive than the OPAL project at the German end Nord Stream.


March 3, 2010

South Stream can result in the loss of exports of Russian gas to Ukraine.


February 4, 2010

Video recording of Gas Session, Russia 2010 Forum, Moscow.

Russia 2010

January 11, 2010

East European Gas Analysis hits the TOP-50 media rating in Russia


November 18, 2009

Record construction costs of Gazprom

Gazprom builds 21-in (530-mm) pipeline at $4.9 million per 1 km. Brokers must be very happy about these spending habits.


November 13, 2009

Gazprom reports soaring costs

From 2008 to Q2-2009, gas production cost went up 33% and transmission cost soared 36%. Apparently, Gazprom is unable to control its expenses.


November 4, 2009

Synchronization problem of Nord Stream

In a no-win situation, Gazprom has to chose between laying an empty 1200-km pipe to Germany and building a temporary 510-km pipeline.


October 20, 2009

Specifications of South Stream project

Gazprom and its partners need to build 11800 km of new pipelines. Gazprom alone has to invest $45 billion. The project will result in multibillion annual losses.


October 9, 2009

Gazprom announces unrealistic five-year plan

Gazprom wants to take a 10% share of the US gas market. Head of "Gazprom Export" thinks there are too many myths about unconventional gas.


August 26, 2009

Gazprom reduces transparency of its financial reports

Gazprom discontinues publication of its segment expenses by quarter. It has been reported in 2002-2008.


August 21, 2009

Gazprom cuts European gas import forecast

Combined capacity of Nord Stream and South Stream exceeds the total projected demand for new gas in Europe in 2020 but matches the size of Ukrainian gas transit.


August 6, 2009

South Stream bypasses Ukrainian shelf

Gazprom gets closer to the final solution of the Ukrainian transit problem. Economically, the South Stream project is a complete loss.


June 4, 2009

Average price of European and Ukrainian exports of Gazprom - updated projection

From Q1-2010, Ukraine will pay for Russian gas the highest price in Europe.


May 1, 2009

Russia suggests an EU Gasplan

Russia's new energy initiative adds elements of central planning to the European gas trade.


April 30, 2009

Brief comments on the 2008 financial statement of Gazprom

The average price of European exports of Gazprom in Q4-2008 was well below $500/mcm.


April 27, 2009

Gazprom and Russian government can take a loss to spite Nabucco

Gazprom is ready to reduce profits, Russian government can cut budget revenues to stop the Nabucco project.


March 10, 2009

Comments on the financial report of Gazprom

Gazprom reallocates more costs to the transmission segment and reports unreal trends again. Transit tariff for independent gas is likely to go up.


February 1, 2009

Nord Stream, South Stream hurt Czech energy security?

If Gazprom completes the new export pipeline projects, Czech transit can be cut to zero. It puts the supply of Russian gas at risk.


January 27, 2009

Gazprom unlikely to fulfill the transit contract

Gazprom-Naftogaz transit contract conflicts with the Nord Stream and South Stream projects. Gazprom would need to pay penalties to fill up the South Stream.



January 21, 2009

Future price of gas and future problems

Naftogaz has no incentives to buy and store gas in summer. Without Ukrainian storage gas, Europe is at risk of gas shortages next winter.


January 16, 2009

Gazprom insists on using just one specific pipeline

Transit of small volumes of gas via Ukraine is a complicated task. The pipeline chosen by Gazprom is nearly the most difficult option.


January 12, 2009

Nord Stream and South Stream are unable to help Eastern Europe

New export projects can improve the security of supply of gas to Germany and Bulgaria only. Poland will be at risk.


January 9, 2009 (addition of January 17)

Comments on the talk of Vladimir Putin

In six days, Gazprom lost 86 million cub m out of the total flow of 1436 million. The loss was considered intolerable and Gazprom was ordered to cut off all exports via Ukraine.


January 5, 2009

Excessive projects of Gazprom: Nord Stream and South Stream pipelines

The export projects of Gazprom are designed to reduce the energy security of some EU member states.


January 4, 2009

2009 gas sales down to the level of 2007;

European price  at $175/mcm in Q4-2008

2009 gas sales are expected $30 bn below the record of 2008. Weak ruble to affect the dollar revenue of Gazprom.


December 26, 2008

Russian-Ukrainian Gas Dispute:

Gas siphoning may start in mid-January

If Gazprom cuts gas sales to Ukraine, European exports will stay unaffected for the period of 10-14 days.


December 1, 2008

Bovanenkovo-Ukhta pipeline is not needed:

Gazprom can cut its pipeline investment program by over 50%

A rational plan can save Gazprom $50-70 bn of pipeline investment cost.


November 25, 2008

Gazprom Does Not Need Nord Stream and South Stream Projects: Export pipeline plans should be adjusted to the reality

The transit cost of gas via Ukraine and Belarus is lower than the transmission cost of Nord Stream and South Stream.


November 1, 2008

Are the South Stream project and Caspian Gas Pipeline abandoned?

Gazprom may need the Caspian gas pipeline to compensate for the off-take by the Kazakhstan-China pipeline or to feed the latter pipeline.

October 10, 2008 - Comment on gas price (Vedomosti)

Putin believes the price of gas in West Siberia should depend on the price of fuel oil in Rotterdam.


July 29, 2008 - South Stream project specs

South Stream is estimated to cost $20 billion. Combined cost of the Caspian pipeline and the South Stream project is twice higher than that of the Trans-Caspian pipeline and Nabucco.


July 19, 2008 - EU gas paradox

Letter to the Financial Times.


July 18, 2008 - Pipeline construction plan of Gazprom exceeds the requirements

Gazprom plans to build more pipelines than needed.


May 16, 2008 - Comments on the 2007 Financial Report of Gazprom

Comments on the financial statement prepared in accordance with the Russian Accounting Standards.


April 2, 2008 - Irrational Gas Pipeline Construction Plan of Gazprom

Gazprom plans to increase the capacity of the Northern Lights pipeline by 110 bcm/year creating a capacity bubble 350 km east of the Russian border.


February 28, 2008 - South Stream to Cross Continental Shelf of Ukraine

The UN Convention of the Law of the Sea gives Ukraine a chance to slow down the South Stream project.


November 22, 2007 - EU gas directive will be good for Russian consumers

Letter to the Financial Times.


November 21, 2007 - Political Pipeline Project of Gazprom

Gazprom inaugurates the least important pipeline project.


November 6, 2007 - Nord Stream may be taxed by Estonia and Finland

Estonia and Finland are likely to eliminate the international waters in the Gulf of Finland.


October 29, 2007 - Gas Storage Expansion 80 Percent Below the Target

Alarming reduction of investment into gas production, transmission and storage.


September 25, 2007 - Nord Stream versus Langeled

Cost of the Nord Stream pipeline is surprisingly high.


June 08, 2007 - Gazprom Increases Cost of Russian Sales, Cuts Cost of Exports

Profitability of domestic gas sales depends on the accounting method.


May 30, 2007 - Gas sector shocks

Letter to the Financial Times.


May 20, 2007 - Caspian Gas Pipeline and Nabucco project

Brief comparison of Caspian Gas Pipeline and Nabucco project.


February 15, 2007 - Gazprom's financial results for 9M-2006

Comments on the financial results of Gazprom: revenues, expenses by segment, RosUkrEnergo.


January 24, 2007 - Improving the image of Gazprom

List of problems complicating the new PR campaign of Gazprom.


December 30, 2006 - Comments to Russia-Belarus gas dispute

Belarus may take control over the Yamal-Europe pipeline.


November 13, 2006 - Who in Europe will break up the new Standard Gas?

Letter to the Financial Times.


July 20, 2006 - Why do shareholders ignore Gazprom's Swiss link?

Letter to the Financial Times.


April 6, 2006 - Is Gazprom losing money on domestic sales of gas?

Profit or loss of Gazprom depends on the calculation method.


March 6, 2006 - Energy security: Gas egotism

Response to Vladimir Putin's letter to the Wall Street Journal.


March 6, 2006 - RosUkrEnergo Wins, Gazprom and NAK Lose

RosUkrEnergo is the only winner, though it is unlikely to stay in business.


January 20, 2006 - Russian daily supplies to Europe likely to drop 15% below contracted levels

Due to severe cold in European Russia and miscommunication with NAK Naftogaz of Ukraine, Gazprom exports are likely to drop 15% from contracted levels (file in PDF format).


January 4, 2006 - Economics of Russian-Ukrainian Gas Conflict: Who won the war?

RosUkrEnergo may be the real winner. Free market in Russia is the loser.


January 3, 2006 - Russian-Ukrainian Gas Conflict: Lack of Free Market in Russia

Giant leap to centralized economy and a blow to the reputation of Gazprom.


December 29, 2005 - Economics of Russian-Ukrainian Gas Conflict: Summary for Beginners

Questionable benefits of Gazprom. Deal with Turkmenistan looks like a bluff.


December 27, 2005 - Russian-Ukrainian Gas Conflict: Financial Effects of the Russian Side-2

The state gains as tax collector, but loses more as shareholder of Gazprom.


December 20, 2005 - Russian-Ukrainian Gas Conflict: Financial Effects of the Russian Side

Gazprom agrees to accept financial loss.


December 18, 2005 - Brief History of Soviet and Russian Gas Pipeline Policy

Democratic Russia brings the Cold War fears of Europe into reality.


December 12, 2005 - Clarifying the Math of Ukrainian Transit Tariff

Lack of numerical arguments in the gas transit conflict between Russia and Ukraine indicates that it is more a political than economic issue. An increase of price for Ukraine would cause a loss for Gazprom. The Russian state is the only winner.


October 24, 2005 - Gazprom: Comments to Financial Report for Q1-2005

Gazprom saves over $1 billion a year on one side and loses $1 billion on another. More details on the management's inaction to the taxation change of January 2004.


October 20, 2005 - Discrepancies of 2004 Financial Report of Gazprom (corrected)

Consolidated financial report of Gazprom for 2004 shows declining production expense and marginally increased transmission expense under growing volumes of gas production and sales.


August 7, 2005 - Gazprom: How to Pay More/Less Taxes

Gazprom saves over $1 billion a year on one side and loses $1 billion on another. More details on the management's inaction to the taxation change of January 2004.

Comments in Russian


July 11, 2005 - Discrepancies of 2004 Financial Report of Gazprom (modified on August 4, 2005)

Consolidated financial report of Gazprom for 2004 shows declining production and transmission expense under growing volumes of gas production and sales.

Report comments in Russian


June 18, 2005 - Gazprom Tax Overpayment of $1.3 Billion

For the period from January 2004 through May 2005, Gazprom has overpaid $1.3 billion of customs duties. The overpayment is caused by management's inaction on the change of Tax Code. Gazprom continues to lose about $3 million a day of tax overpayment.

Tax overpayment comments in Russian

May 6, 2005 - Gas Price in Russia

Charts of gas price through April 2005.

March 2, 2005 - Cost of Labor and Materials

Brief review of wage and industrial price indices through February 2005.

February 25, 2005 - Taxes in the Russian Gas Sector

Summary of changes in taxation of gas business.

February 22, 2005 - Operating Costs of Gazprom

Review of gas production cost in 2003-2005. Analysis of the cost of fuel gas (gas burned at compressor stations) as an indicator of the overall cost performance of Gazprom


December 22, 2004 - Price of Central Asian Gas

Effects of gas price increase by Turkmenistan.


October 2004 - Large-Diameter Pipe Demand of Gazprom  (PDF)

Conference presentation.


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