Overview of major oil or gas pipelines Projects in central and southeastern Europe

Oil and Gas Press SOUTH STREAM Gazprom and Italian oil firm Eni (ENI.MI) plan to build a 10 billion euro ($13.53 billion) pipeline, seen as a rival to Nabucco, to take Russian gas under the Black Sea to south-eastern Europe, avoiding Ukraine. AMBO The 900-km AMBO Trans-Balkan Oil Pipeline is planned to transport Caspian or Russian oil from Bulgaria’s Burgas via Macedonia to the Albanian Adriatic sea port of Vlores. AMBO, the Albanian Macedonian Bulgarian Oil Corp. plans to commission the pipeline in 2011 and to transport crude of 750,000 barrels/day or around 40 million tonnes/year. TRANS ADRIATIC PIPELINE (TAP) The 520 km pipeline will transport gas via Greece and Albania across the Adriatic Sea to southern Italy from 2012. TAP is a 50/50 joint venture between Swiss EGL (EGL.S) and Norway’s StatoilHydro and is expected to cost about 1.5 billion euros to build. It will initially have a capacity of 10 billion cubic metres (bcm) a year but could be expanded to bring up to 20 bcm/year of gas from the Caspian Sea and Middle East regions into Europe. MEDGAZ The 210 km deepwater pipeline, of which construction started in March 2008, will carry up to 8 bcm/year of Algerian gas to Spain when it opens in late-2009. The project is being built by Algerian state gas company Sonatrach and a consortium of Spanish and French companies to help diversify European supplies and cut dependence on Russia. GALSI The Galsi gas pipeline could bring up to 10 bcm/year of Algerian gas to Italy through Sardinia when it opens in 2012. Major shareholders include state-run Algerian gas company Sonatrach, Italian power generator Edison and utility Enel (ENEI.MI). >Oil and Gas Press PAN-EUROPEAN OIL PIPELINE (PEOP) Due to start operating in 2012, will connect the Romanian port of Constanta with Trieste in Italy, via Serbia, Croatia and Slovenia. The 1,400 km long pipeline, worth between $2 billion and $3.5 billion, will supply refineries in northern Italy and central Europe with crude from the Caspian. It will have an annual capacity of 1.2-1.8 million barrels per day (bpd). BAKU-TBILISI-CEYHAN The $4 billion BP-led (BP.L) pipeline was opened in June 2006. Its capacity is one million bpd of Azeri crude. It ran 1,770 km to Turkey’s Ceyhan port in 2008. It is the first pipeline to carry large volumes of crude from the Caspian without going through Russia. CASPIAN PIPELINE CONSORTIUM (CPC) Connects Kazakhstan’s Caspian Sea oil deposits with Russia’s Black Sea port of Novorossiisk. Although the 1,510-km CPC pipeline transverses Russia and was developed in conjunction with the Russian government, it was the first to give the Caspian Sea region and Kazakhstan a viable alternative to the Russian dominated northern export routes. Its shareholders plan to double CPC’s annual capacity from 33 million tonnes by 2013. DRUZHBA Russia’s Druzhba (Friendship) oil pipeline starts in Russia’s Samara and ends in the northern Adriatic port of Omisalj in Croatia, connecting Germany, Poland, Hungary, Slovakia and the Czech Republic. It has a planned capacity of over 2 million bpd, of which some 1.4-1.6 million bpd go directly to consumers in the European Union and the rest stays in Belarus. The Druzhba splits into two legs with the bigger northern leg going to Poland and Germany and the southern leg supplying Slovakia, Hungary and the Czech Republic. One fifth of German supplies arrive via the Druzhba pipeline. >Oil and Gas Press YAMAL-EUROPE The pipeline, which runs from the Yamal peninsula in Russia’s Arctic north to Frankfurt on Oder on the Polish-German border, carries Russian gas for over 4,000 km (2,485 miles). Its capacity is 32.3 bcm a year. BALTIC SEA PIPELINE The 7.4 billion euro gas pipeline would run 1,200 km from Vyborg in Russia to Greifswald in Germany under the Baltic sea. The Nord Stream, majority owned by Russian gas monopoly Gazprom, is building the pipeline with Germany’s BASF and E.ON and Dutch company Gasunie and has plans to build two parallel gas pipeline legs of 750 miles (1,200 km) each, the first by 2011 and the second by 2012. Total annual capacity will be 55 bcm. BALKAN OIL PIPELINE The 279 km oil pipeline, with an estimated cost of 1 billion euros, will run between the Bulgarian Black Sea port of Burgas and the Greek Aegean Sea port of Alexandroupolis. Construction was planned to start in 2009 and the pipeline could come onstream in 2011. Russian oil producers Rosneft, Gazprom and crude oil pipeline monopoly Transneft will share 51 percent of the pipeline. Greece and Bulgaria will share the remaining 49 percent. It will have capacity of 35 million tonnes per year with a potential to expand to 50 million tonnes. CZECH-BELGIUM PIPELINE Germany’s RWE plans to invest 1 billion euros to build a natural gas pipeline from the Czech Republic to Belgium, to transport 5 bcm Russian natural gas a year after it starts operation in 2011. CENTRAL ASIA GAS PIPELINE SYSTEM Russia, Turkmenistan and Kazakhstan have agreed plans for a new natural gas pipeline around the Caspian Sea to deliver up to 20 bcm of gas per year. BALTIC PIPELINE EXPANSION Russia has approved expansion of the Baltic Pipeline System, which will allow Russian oil exports to bypass Belarus, running to Ust-Luga near Russia’s Baltic Sea port of Primorsk. Russian pipeline monopoly Transneft suggested building a pipeline to Primorsk after a row with Belarus that disrupted oil exports flowing to Europe. The new pipeline which could cost around $4 billion will have a capacity of one million bpd. HUNGARY GAS PIPELINE Hungary’s MOLMOLB.BU plans to build a 100-km expansion of its gas pipeline towards Ukraine by 2010 at a cost of 48 billion forints ($290 million). MOL and Romania’s Transgas also plan to connect their networks via a new 109 km pipeline. >Oil and Gas Press]]>