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Gazprom shows
extraordinary high pipeline construction costs.
According to Alexei Miller, the construction of the
Dzhubga – Lazarevskoye – Sochi (DLS) gas pipeline along the
Black Sea shore will cost RUR 25 billion or EUR 583 million. In my
view, this is a way too much for 177 km of 21-in pipe.
Table
1. Specifications of DLS, TAP and Langeled Pipelines
|
Pipeline |
Capacity, |
Length, km: |
Pipe: |
Cost, EUR
million: |
Pipe price, |
Number |
Cost as |
|
bcm/yr |
Land |
Sea |
Total |
D, mm |
Wall, mm |
ton/km |
Total |
Per 1 km |
1 km of pipe |
EUR/ton |
of CS
|
of year |
|
DLS |
3.8 |
18 |
160 |
177 |
530 |
15.9 |
202 |
583 |
3.3 |
0.3 |
1500 |
- |
2009 |
|
TAP |
10.0 |
405 |
115 |
520 |
1220 |
25-36 |
600 |
1500 |
2.9 |
0.9 |
1500 |
2 |
2008 |
|
Langeled |
25.0 |
- |
1200 |
1200 |
1016-1066 |
23.3-34.1 |
735 |
2500 |
2.1 |
0.6 |
750 |
- |
2006 |
The table compares the
costs of DLS,
Trans-Adriatic Pipeline (TAP) and
Langeled projects. Note that DLS runs 4.5 km off the shore line
at the depth less than 100 m. There is a railway along the shore
that reduces transportation costs. On the other hand, the
construction of TAP will require pipe and material transportation by
trucks. Note that two compressor stations are included into the cost
of TAP.
Brokers and contractors
must be extremely pleased by the spending habits of Gazprom. I am
not so sure about the minority shareholders of the Russian gas
monopoly.
Mikhail
Korchemkin
November 18, 2009
Malvern, Pennsylvania,
USA
ADDENDUM OF NOVEMBER 19, 2009
Actually, the Sochi pipeline is
more expensive than Nord Stream! Note that the combined length of the two
Nord Stream lines is 2400 km.
Table
2. Specifications of DLS and Nord Stream Pipelines
|
Pipeline |
Capacity, |
Length, km: |
Pipe: |
Cost, EUR
million: |
Pipe price, |
Number |
Cost as |
|
bcm/yr |
Land |
Sea |
Total |
D, mm |
Wall, mm |
ton/km |
Total |
Per 1 km |
1 km of pipe |
EUR/ton |
of CS
|
of year |
|
DLS |
3.8 |
18 |
160 |
177 |
530 |
15.9 |
202 |
583 |
3.3 |
0.3 |
1500 |
- |
2009 |
|
Nord Stream |
27.5 |
- |
2400 |
2400 |
1153 |
26.8-41.0 |
992 |
7400 |
3.1 |
1.5 |
1500 |
- |
2009 |
This is a good indicator of the
cost of feeding pipelines of the Nord Stream and South Stream projects.
ADDENDUM OF
NOVEMBER 30, 2009
In March 2008,
OOO "Piter Gaz Engineering" estimated the cost of the Sochi pipeline at
RUR 8-10 billion, or EUR 1.2 million per 1 km. Somehow, the economic
crisis has caused nearly a threefold increase of the investment cost.
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