2013 Pipeline Construction Report

By Rita Tubb, Managing Editor | January 2013, Vol. 68, No. 1

To feed the required gas to South Stream, Russia’s transmission system throughput will be increased through construction of an additional 1,520 miles of line pipe and 10 compressor stations with total capacity of 1,473 MW. This project, named South Corridor, and will be implemented in two phases before December 2019.

In addition to working on diversifying the routes of Russian gas supplies to the EU, Gazprom is anxious to develop its Asian markets. Gazprom announced a $38 billion program to develop an East Siberian gas field and building a pipeline to the Pacific port of Vladivostok to lessen its reliance on exports to Europe. Plans call for an investment of $24.5 billion to build the 2,000-mile pipeline from the East Siberian Chayanda deposit to Vladivostok. The remaining $13.7 billion would be invested in field development.

In the Ukraine, a comprehensive upgrading of a section of the Urengoi-Pomary-Uzhgorod gas trunk pipeline (also known as the West-Siberian Pipeline or Trans-Siberian Pipeline) which carries Russian gas to Europe is under way by Naftogaz Ukrainy. This includes replacing insulation and pipes, modernization and reconstruction of pumping stations. Investments in the first stage, which will require three years, will cost US$539 million. The total cost to upgrade the country’s pipelines is estimated at US$6.5 billion and completion is expected in 2020.

Western Europe & EU Countries

Poland’s Gas Transmission Operator Gaz-System has a host of gas pipelines planning, including the cross-border Poland-Slovakia pipeline which will connect the natural gas transmission systems of the two countries, and expansion of the Poland-Czech Republic pipeline. The European Commission is co-financing business and feasibility studies for the two projects.
The parties to the Poland-Slovakia project are Gaz-System S.A. and Eustream - the Slovakian transmission system operator.

Gaz-System accounts for several gas pipeline projects awaiting decisions, including the: 81-mile Zdzieszowice-Wrocław pipeline; 32-mile Skoczów-Oświęcim pipeline; 117-mile Szczecin-Lwówek pipeline; 110-mile Rembelszczyzna- Gustorzyn pipeline; 165-mile Szczecin-Gdańsk pipeline; 105-mile Gustorzyn- Odolanów pipeline; 41-mile Polkowice-Żary pipeline ; and 61-mile Strachocina-Pogórska Wola pipeline.

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