According to a statement from research and consulting firm GlobalData, the 13,009 miles of pipelines Russia plans to build through 2018 will have a significant impact on natural gas trade flows into Europe and crude oil and natural gas flows in Asia.
Russia’s major projects include the Trans-Korean gas pipeline and the Yakutia-Khabarovsk-Vladivostok gas pipeline, which will both be 1,988 miles, and the 1,651-mile Altai Gas system into Xinyuan, China.
Additionally, new natural gas pipeline systems will be built to link Russia’s Siberian production fields with industrial centers in China, due to the recently announced Russia-China natural gas “mega-deal.” Initial gas deliveries on the systems are expected in 2018.
“European countries are now seeking to avoid over-dependence on Russian gas supplies,” Carmine Rositano, GlobalData’s managing analyst covering downstream oil and gas, said. “This has triggered plans for several new pipeline projects in the EMEA [Europe, the Middle East and Africa] region, with the aim of providing access to natural gas from the Caspian Sea and Central Asia to the key European consumers of gas. One such project is the Trans Adriatic Pipeline, which aims to bring natural gas from Azerbaijan to Europe.”
Most of the pipelines built in the EMEA region by 2018 will be natural gas pipelines, accounting for about 82% of the regional additions, GlobalData said. Projects for transportation of crude oil, refined products and NGL will account for about 13%, 4% and 1% of additions, respectively.
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