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

Bulgaria's gas transit tariff to be three times higher than that of Ukraine

At a press conference after the signing of the South Stream agreement with Bulgaria, Vladimir Putin gave two interesting numbers.

First, Russia's prime minister put Bulgaria's revenue from Russian gas transit at "600 million euro or dollars". Apparently, this is a mistake. This year, Gazprom will ship through Bulgaria about 11 bcm of Russian gas and pay some $65-85 million for the transit services. Note that Gazprom paid Ukraine about $2.0 billion for the transit of 92.8 bcm of Russian gas to Europe in 2009.

The second number is more interesting. According to Vladimir Putin, "Bulgaria will get almost 2.5 billion merely for the pipeline crossing through it". Bulgarian Prime Minister Boyko Borisov confirmed the number, though both premiers did not say whether it was in euro of dollars.

If the sum is in dollars, then the transit tariff at the Bulgarian section of South Stream will be about $7.50/mcm per 100 km, or three times the current Ukrainian tariff. If Putin and Borisov meant euro, then the Bulgarian tariff will be four times higher than the one of Ukraine.

For the sake of comparison, this year Gazprom will pay Ukraine about $3.2 billion for the transit of some 100 bcm of Russian gas to Europe. Gas transportation distance in Ukraine is 1240 km or twice longer than the one of the Bulgarian section of South Stream.

Mikhail Korchemkin

East European Gas Analysis

November 14, 2010

Malvern, PA, USA



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