More than Nord Stream: Russia's Global Gas Projects | MDR.DE

More than Nord Stream: Russia's Global Gas Projects | MDR.DE

The criticism of Nord Stream 2 in Europe does not stop there: the EU and the US House of Representatives called for the construction to be stopped. The pipeline is not the only controversial project of Russian gas companies.

After the Russian Coast Guard captured two Ukrainian ships in Kerch Strait in November 2018, Ukraine and the Baltic States also reiterated their criticism of the extension of the existing Baltic Sea pipeline. At the same time Gazprom drove in 2018 for another record year in terms of export to Western Europe. If the state-owned company supplied 192 billion cubic meters of gas to European customers in 2017, the company estimates that it will be more than 200 billion cubic meters of gas. The existing export capacity amounts to about 250 billion. Gazprom's vice-president Alexander Medvedev would like to do more, as his group could theoretically increase exports to Europe by up to 50 percent with the construction of new pipelines.

In the autumn of 2018 Gazprom announced the completion of the first leg of the Turkish Stream. This is initially only to supply the Turkish market, but soon the gas exporter wants to lay another strand, which will also serve customers in Europe. For example about a possible new leadership from Turkey via Bulgaria, Hungary and Austria. Overall, the capacity of the two tubes of Turkish Stream should be 35 billion cubic meters a year.

But even in Europe's south, things are not going smoothly for Gazprom. It is true that Bulgaria has already declared that it would be interested in a new administration that connects the EU country to Turkish Stream. But four years ago, Bulgaria refused to allow Gazprom to build the South Stream gas pipeline that was originally supposed to run from the Russian Black Sea coast to Bulgaria. The criticism of the European Commission was too loud. & Nbsp; Turkish Stream emerged as a replacement for the failed South Stream project. Once again Brussels is threatened. At the beginning of December, European Commission Vice-President Maros Sefcovic, responsible for energy policy, said that the EU would not approve of Bulgaria's leadership if it were a mere transit pipeline for Turkish Stream, rather than one Management that is open to other providers.

2014 ceremony for the China-Russia cooperation with the chairman of Gazprom Alexei Miller, President Putin and then Chinese Deputy Prime Minister Zhang Gaoli.

Resistance in parts of the EU against new pipelines from Russia has helped Gazprom win China a few years ago as a new bulk gas buyer from Siberia. Shortly after the annexation of Crimea and in the midst of the Ukraine crisis, Gazprom signed a contract with China. Deliveries amounting to 38 billion cubic meters of gas per year over a period of 30 years have been agreed. For this Gazprom is currently building the pipeline "Sila Sibiri", to German power Siberia. By the end of 2018, the over 2000-kilometer-long pipeline will reach the Chinese border. One year later, the first deliveries should begin.

Another major project for the region is the gas processing plant Amur GPZ, which is also being built by Gazprom. Helium and other gas products are to be produced for customers in China. Costs for both projects: about 35 billion euros.

In addition, Russia is conducting talks on a second pipeline that could transport up to 30 billion cubic meters of gas from West Siberia to China via the Altai region each year. However, there are still no firm contracts. Even if Russia opens up a new sales market, it hails criticism because of the high investment costs. For example, former Sberbank chief analyst Alexander Fak accused Gazprom in an official analysis of the bank of acting not in the interests of the group but in the interests of construction companies and tube suppliers. A reproach, which one does not like to hear in the Kremlin, because Fak had to vacate his post shortly thereafter.

In contrast, a large-scale project is reaping the rewards that within a few years Russia has catapulted itself from being an outsider into an important player on the world market for LPG. One reason: The gas company Novatek is privately owned. The other reason: Novatek managed to complete Russia's largest LNG plant on the Yamal Peninsula in northern Siberia one year ahead of schedule. The production in the plant is already running. France and China mix with: & nbsp; shareholders at 20 percent each & nbsp; are the French energy group Total and the Chinese & nbsp; energy companies CNPC, & nbsp; 9.9 percent holds the Chinese Silk Road Fund. In total, the investment costs amount to the equivalent of about 23 billion euros.

According to Novatek, nearly 90 percent of the 16 million tons of liquefied gas produced annually are intended for customers in Asia. However, because the plant was completed ahead of schedule, Russian liquefied petroleum gas is temporarily flowing mainly to Europe, where LNG prices have recently picked up. According to the industry service ICIS came in November, 17 percent of all European LPG imports from Russia. The contractually guaranteed deliveries to Asia should begin in 2019. Novatek is already planning to build a second, even larger, LPG plant in the region. Construction of the planned Arctic LNG production facility is expected to begin in the early 2020s, exceeding the volume of the Jamal project with 18 million tonnes of annual output.

Events in Anapa