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    Gazprom Claims "Power of Siberia" is one of its Least Expensive Projects

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Summary

Mikhail Korchemkin of East European Gas Analysis, looks at the cost of Gazprom's proposed "Power of Siberia" pipeline

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Natural Gas & LNG News, News By Country, Russia, , Security of Supply

Gazprom Claims "Power of Siberia" is one of its Least Expensive Projects

Gazprom estimates the cost of the "Power of Siberia" pipeline at about Rub 770 Billion (€15.8 Bn, $20.8 Bn). It means that the new East Siberian project is one of the least expensive pipelines of Gazprom of the past decade.

Specifications of Selected Pipeline Projects of Gazprom

 Pipeline project

 D,

L,

  P,

Year

  Cost per 1 km in Millions of

  mm

km

  MPa

of CE

  Rub

EUR

USD

 Southern Corridor

1420

2506

9.8

2012

295

7.4

9.5

 Sakhalin-Khabarovsk-Vladivostok

1220

1837

9.8

2009

254

6.0

8.1

 Gryazovets-Vyborg-1

1420

917

9.8

2007

168

4.9

6.3

 Power of Siberia

1420

3968

9.8

2014

194

4.0

5.3

D = Diameter, L = Length, P = Pressure, CE = Cost Estimation

Source: Gazprom

Current Russian contractors are very unlikely to reverse the construction cost trend. The ROW of "Power of Siberia" runs through a very complicated terrain, virtually without railroads and roadways, so the costs are expected to exceed these of the Southern Corridor project.

 

Mikhail Korchemkin

Our thanks to East European Gas Analysis, a Natural Gas Europe Industry Partner