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FACTBOX-Major energy pipelines in central/south Europe
January 16, 2008 / 11:07 AM / in 10 years

FACTBOX-Major energy pipelines in central/south Europe

Jan 16 (Reuters) - Here are some key facts on major oil or gas pipelines in central and southeastern Europe:

* GALSI PIPELINE - The 910 mile (1,350 kn) Galsi gas pipeline could bring up to 10 billion cubic metres a year of Algerian gas to Italy through Sardinia when it opens in 2011. Italy is pushing the developers, which include state-run Algerian gas company Sonatrach, Italy’s Enel (ENEI.MI) and Germany’s BASF BASF.DE, to finish the project before then.

* TRANSMED PIPELINE - Sonatrach is also working to boost the capacity of the existing 27 bcm/year Transmed gas pipeline which runs from Algeria through Tunisia and into Sicily, Italy by 6.5 bcm per year by 2008.

* MEDGAZ PIPELINE - The 210 km-long, 8 bcm a year Medgaz pipeline is planned to bring Algerian gas to Spain from the middle of 2009. Construction started early in 2007. The Sonatrach-led project involves Spain’s Cepsa CEP.MC, Iberdrola (IBE.MC), Endesa (ELE.MC) and Gaz de France GAZ.PA.

* MAGHREB-EUROPE GAS PIPELINE - The Maghreb-Europe pipeline, which runs across Morocco and under the Straits of Gibraltar, already supplies Spain with Algerian gas.

* PAN-EUROPEAN OIL PIPELINE (PEOP) - Due to start operating in 2012, will connect the Romanian port of Constanta with Trieste in Italy. The 1,400 km (870 miles) 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 60-90 million tonnes (1.2-1.8 million barrels per day).

* BAKU-TBLISI-CEYHAN PIPELINE - The $4 billion BP (BP.L) -led pipeline was inaugurated last July. It is planned to pump one million bpd of Azeri crude 1,040 miles 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. Oil loaded at Novorossiisk is then taken by tanker to world markets. Although the 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. Russia has repeatedly blocked Kazakh plans to double the Caspian Pipeline’s capacity from the current 700,000 bpd.

* DRUZHBA PIPELINE - 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 barrels per day (bpd), of which some 1.4-1.6 million bpd go directly to consumers in the European Union, while remaining volumes stay in Belarus. The 4,023-km (2,500 mile) Druzhba splits into two legs with the bigger one, the northern leg, going to Poland and Germany. The southern leg supplies Slovakia, Hungary and the Czech Republic. Russia’s Transneft (TRNF_p.RTS) operates the pipeline.

* YAMAL-EUROPE PIPELINE - 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). The whole pipeline, expected to be completed by 2010, was estimated to cost about $10 billion with a capacity to carry 67 billion cubic metres (2,370 billion cubic feet) of gas a year through two stretches.

* NABUCCO PIPELINE - Nabucco is a 4.6-billion euro ($6 billion) project to transport natural gas from Turkey to Austria, passing through Bulgaria, Romania, and Hungary. If construction of the 3,300-km (2,050 mile) pipeline starts in 2008, it could begin operating in 2011. It could transport annually 25.5 to 31 billion cubic metres of Caspian gas to Europe by 2020, reducing Europe’s dependency on Russian gas. Austrian oil and gas group OMV (OMVV.VI), heads the consortium which includes Hungary’s MOL (MOLB.BU), Turkey’s Botas, Bulgaria’s Bulgargaz and Romania’s Transgaz.

German utility RWE (RWEG.DE) is expected to become the sixth partner, pending formal approval by Botas.

* BALTIC SEA PIPELINE - The 5-billion-euro ($6.6 billion) gas pipeline would run 1,200 km (746 miles) from Vyborg in Russia to Greifswald in Germany under the Baltic sea.

Nord Stream, majority owned by Russian gas monopoly Gazprom (GAZP.MM), is building the pipeline with Germany’s BASF and E.ON EONG.DE and has plans to build two parallel gas pipeline legs, 750 miles (1,200 km) each.

Dutch state pipeline operator Gasunie has become the fourth partner in the project, taking a 9 percent stake from the German partners.

* TRANS AUSTRIA GASLEITUNG (TAG) - The 380 kilometre-long (236 miles) TAG pipeline carries gas from Russia through Austria to Italy, Croatia and Slovenia. Italian oil firm Eni (ENI.MI) owns 89 percent of TAG and manages the pipeline, with Austrian oil and gas group OMV holding the remainder.

* BALKAN OIL PIPELINE - Russia, Greece and Bulgaria have set aside differences to allow construction of the 279-km (173 miles) oil pipeline, estimated at 950 million euros, between the Bulgarian Black Sea port of Burgas and the Greek Aegean Sea port of Alexandroupolis, bypassing the congested Turkish Bosphorus Straits. Russian oil producers Rosneft (ROSN.MM) and Gazprom Neft (SIBN.MM) and crude oil pipeline monopoly Transneft will now 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. Some 161 km of the pipeline passes through Bulgaria and 118 km through Greece.

* CZECH-BELGIUM PIPELINE - German power group RWE (RWEG.DE) has plans to invest 1 billion euros ($1.30 billion) to build a natural gas pipeline from the Czech Republic to Belgium. RWE’s Czech unit Transgas extended a contract in December in which Russia’s Gazprom agreed to supply it gas until 2035.

* ODESSA-BRODY PIPELINE - The Odessa-Brody pipeline was one of Ukraine’s most ambitious projects since independence in 1991. Built in 2002 and designed to carry Caspian oil to Europe with a capacity of up to 14 million tonnes per year or 280,000 bpd, the pipeline stood idle for two years and was reversed in 2004 to ship Russian oil.

* CASPIAN GAS PIPELINE - Russia, Turkmenistan and Kazakhstan have agreed plans for a new natural gas pipeline around the Caspian Sea to deliver 10 billion cubic metres of gas per year by 2009-2010. The U.S. says the deal is not good for Europe, because it would cement Russia’s grip on gas exports from the region. But Russia says the new pipeline would lead to the creation of additional routes to the European Union.

* BALTIC PIPELINE EXPANSION - Russia has approved expansion of the Baltic Pipeline System, which will allow Russian oil exports to bypass Belarus and go instead to the country’s Baltic Sea port of Primorsk. Russia’s pipeline monopoly Transneft suggested building a pipeline spur to Primorsk after a row in January with the former Soviet neighbour that disrupted oil exports flowing to Europe across Belarus. The project will boost shipments from Primorsk to 2.5 million barrels a day from the current 1.5 million bpd.

* HUNGARY GAS PIPELINE - Hungary’s MOL plans to build a 100-kilometre expansion of its gas pipeline towards Ukraine by 2010 at a cost of 48 billion forints ($260.4 million). The pipeline will help meet Hungary’s rising domestic gas needs, but is not an alternative to other planned pipelines such as Nabucco or Blue Stream, MOL said.

* SOUTH STREAM PIPELINE - Gazprom GAZR.MM and Italian oil firm Eni (ENI.MI) plan to build a new pipeline under the Black Sea to take Russian gas to Europe.

Gazprom had previously discussed expanding the existing Blue Stream pipeline, which carries gas from Russia into Turkey, to southern Europe and Israel. But that could now be in doubt in the light of the South Stream plans.

South Stream is also likely to dash hopes that Gazprom would join the Nabucco pipeline project, led by Austria, to carry Caspian gas to Europe via Turkey and the Balkans.

Sources: Reuters; U.S. Energy Information Administration (www.eia.doe.gov); Yamal-Europe Gas Pipeline (www.europolgaz.com); Caspian Pipeline Consortium, Medgaz consortium; (here)

jane.merriman@reuters.com

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