Economic Transition in Russia and the New States of Eurasia

By Bartlomiej Kaminski | Go to book overview

Table 5.14
FSU Gas Pipeline and Compressor Capacity Breakdown (as of 1 January 1993)
PipelineCompressors
CountryLength, km% of totalCapacity, Mw% of total
FSU total215,196.0100.047,484.2100.0
Russia138,421.964.336,484.476.8
Ukraine30,872.514.35,247.411.1
Kazakhstan10,501.24.92,066.24.4
Belarus4,711.72.2685.21.4
Uzbekistan10,586.24.91,499.43.2
Turkmenistan7,336.93.41,015.82.1
Kyrgyzstan581.00.316.80.0
Tajikistan864.00.4----
Azerbaijan3,437.31.6210.30.4
Armenia1,819.50.89.90.0
Georgia1,913.70.934.30.0
Moldova999.00.5159.50.3
Estonia650.10.3----
Latvia1,134.60.55.10.0
Lithuania1,366.40.649.90.1
Source: Gazprom 1993, annual report.

million per one MW of compressor capacity, this would significantly increase Gazprom's transmission costs. Gazprom's new pipeline construction plans focus on the western sections of the proposed Yamal-Germany project. This would require the construction of 1,004 kilometers of (56-inch) pipeline from Torzhok (north of Moscow) to Brest ( Belarus) and a 665-kilometer section in Poland. However, the developed route through Ukraine would provide more market opportunities, as it could supply gas to Italy, where gas use is expected to grow faster than anywhere else in Europe. Besides, countries in northwestern Europe have already signed contracts with Norway in volumes meeting their anticipated gas consumption growth.


Summary

The Russian oil and gas markets, as well as the markets of other FSU countries (except the Baltic states), are likely to continue declining through the end of this decade. Moderate growth is expected after the turn of the millennium, so FSU countries are unlikely to reach oil and gas consumption levels of 1990-91. The logical price cap for Russian crude oil in the FSU can be defined as the Rotterdam (or Mediterranean) price of the Russian export blend, less freight and insur-

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