Oil and Gas Pipelines in Russia

Crude Oil Pipelines

• Russia has an extensive domestic distribution and export pipeline network. Russia's pipeline network is nearly completely owned and run by the state-run Transneft, which transports about 88% of all crude oil and about 27% of oil products produced in Russia.
• These pipelines include a number of domestic pipeline networks, pipelines that transport oil to export terminals such as Novorossiysk on the Black Sea and Primorsk on the Baltic Sea, as well as a number of export pipelines that deliver oil to western European markets.
• Russian export pipelines include Druzhba, Baltic Pipeline System, North-West Pipeline System, Tengiz-Novorossiysk, and Baku-Novorossiysk.
• All of these pipelines, with the exception of the Tengiz-Novorossiysk, are Transneft-controlled.
• **Current pipelines**

1. **[[[Druzhba Pipeline]]]**

* Northern Route: Belarus, Poland Germany; 
* Southern Route: Belarus, Ukraine, Slovakia, Czech Republic, Hungary	
* 2,400 Miles
* 2 Million Bpd

1. Baltic Pipeline System 1

* Timan Pechora to Primorsk Terminal
* 730
* 1.5	 

1. **[[[Baltic Pipeline System 2]]]**

* Unecha to Ust-Luga Terminal
* 620
* 1	 

1. North-West Pipeline System

* Polotsk to Butinge and Ventspils
* Branches off of Druzhba near Russia-Belarus border and transports Russian oil via Belarus to Latvia and Lithuania
* 500
* 0.3

1. **[[[Caspian Pipeline Consortium Oil Pipeline]]]**

* Tengiz (Kazakhstan) to Russian Black Sea port of Novorossiysk	
* 940
* 0.7 - Planned expansion to 1.4 million bbl/d by 2016

1. **[[[Baku Novorossiysk Oil Pipeline]]]**

* Sangachal Terminal (Azerbaijan) to Russian Black Sea port of Novorossiysk
* 830
* 0.1 - Planned expansion to 0.3 million bbl/d

1. **[[[Eastern Siberia – Pacific Ocean Oil Pipeline]]]** (ESPO)

* Taishet-Skovorodino-Kozmino Bay (with a 60-mile spur running from Skovorodino to Daqing in China)
* 270
* 0.6	Capacity of ESPO I and ESPO II each are 0.6 million bbl/d. The Daqing spur capacity is 0.3 million bbl/d.

1. **[[[Purpe – Samotlor Pipeline Project]]]**

* Oil fields in the Yamal-Nenets and Ob Basin (including Vankor field) to the ESPO Pipeline
* 266
* 0.5	 

1. **[[[Zapolyarye Purpe Oil Pipeline]]]**

* Oil fields in the Zapolyarye region and new fields in Yamal-Nenets region to the ESPO and Purpe-Samotlor Pipelines	
* 310
* 0.9	 

+++ Gas Pipelines

• In addition to dominating the upstream, Gazprom dominates Russia's natural gas pipeline system. There are currently 10 major pipelines in Russia, eight of which are export pipelines. The Yamal-Europe I, Northern Lights, Soyuz, Bratstvo, and Nord Stream pipelines all carry Russian gas to Eastern and Western European markets via Ukraine, Belarus, and across the Baltic Sea. These five pipelines have a combined capacity of nearly 6 Tcf per day. Three other pipelines – Blue Stream, North Caucasus, and Mozdok-Gazi-Magomed – connect Russia's production areas to consumers in Turkey and the Former Soviet Union (FSU) republics in the east.
• Gazprom's ownership of the Russian pipeline system continues to limit competition, including independent gas producers who have unsuccessfully tried to gain access to the system through a third-party access (TPA) mechanism. While the Russian government agreed to ensure TPA to the domestic pipeline system, actual changes have not occurred. Allowing open access to other producers would allow oil companies to monetize their associated gas production rather than flare the gas.

++++ Notable current and proposed natural gas pipelines

• Unified Gas Supply System is Russia's domestic gas pipeline system, which is owned and controlled by Gazprom. It operates about 104,000 miles of high-pressure gas pipelines, as well as 268 compressor stations, 6 gas processing facilities and 25 underground gas storage facilities with a combined storage capacity of 2.4 Tcf.
• **[[[Yamal-Europe I Gas Pipeline]]]** carries Russian gas to Poland and Germany via Belarus with a throughput capacity of 1.2 Tcf annually. The currently proposed Yamal-Europe II would expand the existing pipeline by 1 Tcf, although disputes between Poland and Gazprom on routing of the pipeline make the project less likely.
• **[[[Blue Stream Pipeline]]]** is a 750-mile long pipeline that connects Izobilnoye in Russia to Samsun, Turkey via the Black Sea. The pipeline's capacity is approximately 560 Bcf per year.
• **[[[North Caucasus Gas Pipeline]]]** is a 350-Bcf pipeline that runs to Georgia and Armenia. This pipeline is a frequent target of sabotage in the Northern Caucasus. It can transport about 500 Bcf of natural gas each year.
• Yamburg-Uzhgorod, Orenburg-Uzhgorod, Urengoy-Uzhgorod, and Dolina-Uzhgorod are four pipelines, with annual combined throughput capacity of between 700 Bcf and 1 Tcf that carry Russian gas to Western European countries (mainly Germany, Italy, and France) via Ukraine.
• Gazi-Magomed-Mozdok pipeline connects southern Russia with Azerbaijan. Initially, this pipeline was used to export Russian gas to Azerbaijan, but it has been reversed and now it can ship about 200 Bcf of Azerbaijan's gas to Russia each year. It is approximately 400 miles long.
• Nord Stream is a 760-mile offshore twin pipeline that runs between Vyborg, Russia and Greifswald, Germany along the Baltic seabed. Its annual throughput capacity is 1.9 Tcf, and it ships gas from Yuzhno-Russkoye field directly to Germany and northern Europe. The first line was launched in November 2011, and the second line was placed into service at the end of 2012.
• South Stream pipeline would transport natural gas from Izobilnoye in Russia and would run for 560 miles under the Black Sea, achieving a maximum water depth of over 6,500 feet. The second, onshore component will cross Bulgaria. As a result of the Russia-Ukraine disputes, the pipeline will be constructed through Turkey's waters, avoiding Ukraine's territory altogether. Construction began in December 2012, and the first gas is expected to flow by 2015.

+++ Oil Export Ports

• There are at least 18 ports serving as export outlets for Russian oil to various markets, including Europe, the Americas, and Asia. Among these ports, eight stand out because of their importance:
• **Primorsk** is Russia's largest oil terminal, with a loading capacity of 1.5 million bbl/d. It is located near St. Petersburg and is a two-berth harbor that can accommodate ships with maximum length of 307 meters (335 yards).
• **Kozmino Bay** is located in Russia's far eastern Primorsky province. Crude loaded at Kozmino Bay is transported via the ESPO pipeline and rail to the terminal. The port's initial capacity of 300,000 bbl/d will eventually be expanded to 1 million bbl/d.
• Novorossiysk is Russia's main oil terminal on the Black Sea coast. Its load capacity is 950,000 bbl/d, and it can load tankers up to 150,000 deadweight tons (dwt).
• **Tuapse** is located on the northeastern shore of the Black Sea, southeast of Novorossiysk. Two of the six berths load crude oil. The port mainly exports Siberian Light. Its loading capacity is about 350,000 bbl/d. In addition, the terminal has more than 580,000 bbl of oil and oil products storage capacity. The port can accommodate tankers with up to 80,000 dwt.
• **De-Kastri** is located in Russia's Far East, southwest of the Tatar Strait that separates Sakhalin Island from the Russian mainland. Its export capacity is 250,000 bbl/d. The port can accommodate Aframax vessels.
• **Yuzhny terminal** is located in Ukraine, near Odessa, although it mainly exports Russian and Kazakh crude oil via the Black Sea. This port's load capacity is 315,000 bbl/d, and it can accommodate vessels up to 70,000 dwt.
• **Prigorodnoye** is located on Sakhalin Island on the Aniva Bay. The port is capable of loading 100 Aframax and 160 LNG vessels each year.
• **Varandey** is a fixed, ice-resistant offshore oil export terminal in the Russian Arctic, owned and operated by LUKoil. The terminal's capacity is approximately 240,000 bbl/d. Oil loaded at Varandey is shipped west to Murmansk for reloading onto larger vessels

+++ Links

1. EIA, Russia