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The Economics of the Nord Stream Pipeline System
The Economics of the Nord Stream Pipeline System Chi Kong Chyong, Pierre Noël and David M. Reiner September 2010 CWPE 1051 & EPRG 1026 The Economics of the Nord Stream Pipeline System EPRG Working Paper 1026 Cambridge Working Paper in Economics 1051 Chi Kong Chyong, Pierre Noёl and David M. Reiner Abstract We calculate the total cost of building Nord Stream and compare its levelised unit transportation cost with the existing options to transport Russian gas to western Europe. We find that the unit cost of shipping through Nord Stream is clearly lower than using the Ukrainian route and is only slightly above shipping through the Yamal-Europe pipeline. Using a large-scale gas simulation model we find a positive economic value for Nord Stream under various scenarios of demand for Russian gas in Europe. We disaggregate the value of Nord Stream into project economics (cost advantage), strategic value (impact on Ukraine’s transit fee) and security of supply value (insurance against disruption of the Ukrainian transit corridor). The economic fundamentals account for the bulk of Nord Stream’s positive value in all our scenarios. Keywords Nord Stream, Russia, Europe, Ukraine, Natural gas, Pipeline, Gazprom JEL Classification L95, H43, C63 Contact [email protected] Publication September 2010 EPRG WORKING PAPER Financial Support ESRC TSEC 3 www.eprg.group.cam.ac.uk The Economics of the Nord Stream Pipeline System1 Chi Kong Chyong* Electricity Policy Research Group (EPRG), Judge Business School, University of Cambridge (PhD Candidate) Pierre Noёl EPRG, Judge Business School, University of Cambridge David M. Reiner EPRG, Judge Business School, University of Cambridge 1. -
Long-Term Prospects for Northwest European Refining
LONG-TERM PROSPECTS FOR NORTHWEST EUROPEAN REFINING ASYMMETRIC CHANGE: A LOOMING GOVERNMENT DILEMMA? ROBBERT VAN DEN BERGH MICHIEL NIVARD MAURITS KREIJKES CIEP PAPER 2016 | 01 CIEP is affiliated to the Netherlands Institute of International Relations ‘Clingendael’. CIEP acts as an independent forum for governments, non-governmental organizations, the private sector, media, politicians and all others interested in changes and developments in the energy sector. CIEP organizes lectures, seminars, conferences and roundtable discussions. In addition, CIEP members of staff lecture in a variety of courses and training programmes. CIEP’s research, training and activities focus on two themes: • European energy market developments and policy-making; • Geopolitics of energy policy-making and energy markets CIEP is endorsed by the Dutch Ministry of Economic Affairs, the Dutch Ministry of Foreign Affairs, the Dutch Ministry of Infrastructure and the Environment, BP Europe SE- BP Nederland, Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. ('Rabobank'), Delta N.V., ENGIE Energie Nederland N.V., ENGIE E&P Nederland B.V., Eneco Holding N.V., EBN B.V., Essent N.V., Esso Nederland B.V., GasTerra B.V., N.V. Nederlandse Gasunie, Heerema Marine Contractors Nederland B.V., ING Commercial Banking, Nederlandse Aardolie Maatschappij B.V., N.V. NUON Energy, TenneT TSO B.V., Oranje-Nassau Energie B.V., Havenbedrijf Rotterdam N.V., Shell Nederland B.V., TAQA Energy B.V.,Total E&P Nederland B.V., Koninklijke Vopak N.V. and Wintershall Nederland B.V. CIEP Energy -
Midstreamnews | PLS Inc | 44 Characters Or Less
January 21, 2013 • Volume 06, No. 01 MIDSTREAMNEWS Serving the marketplace with news, analysis and business opportunities TransCanada tapped for $5.0 billion B.C. gas pipeline Buffett & Icahn arrive at Newly acquired Petronas sub Progress Energy Canada has chosen TransCanada shale boom by rail to design, build, own and operate the proposed $5.0 billion Prince Rupert gas Warren Buffett’s Berkshire transmission project to transport British Columbia shale gas to the West Coast, where Hathaway and Carl Icahn’s Icahn the gas will be exported as LNG to lucrative Asian markets. The proposed Capital LP are cashing in on continued pipeline will transport gas produced primarily from the North Montney tight transportation capacity in the region near Fort St. John, British May spend $1.5 billion on extension of Bakken. The increasing use Columbia to Progress’ recently proposed Nova line to complement Prince Rupert. of rail to move oil cargo has Pacific Northwest LNG export facility in caused a shortage of tanker cars. Buffett’s Port Edward near Prince Rupert, BC. Although the route has yet to be determined, the Berkshire owns 60% of Marmon pipeline is expected to stretch 466 miles and will have an initial capacity of 2.0 Bcfd Holdings, which in turn owns tank car expandable to 3.6 Bcfd. builder Union Tank Car. (Berkshire is Progress and TransCanada are finalizing agreements, and TransCanada has scheduled to acquire the remaining 40% already begun preparing provincial regulatory filings and is gearing up for talks with of Marmon by 2015.) First Nations and other stakeholders. Input from these groups will help TransCanada formulate the proposed pipeline route. -
Petroleum Industry 2010 the Austrian Petroleum Industry Association (Apia) Executive Summary 2010 Summary Executive
PETROLEUM INDUSTRY 2010 THE AUSTRIAN PETROLEUM INDUSTRY ASSOCIATION (APIA) EXECUTIVE SUMMARY 2010 SUMMARY EXECUTIVE ffmvimvi ssummary_205x280.inddummary_205x280.indd 1 221.09.111.09.11 19:0219:02 KEY FIGURES Austrian Petroleum Industry 2010 2009 2008 2007 2006 Number of association companies 22 23 23 25 25 Sold production EUR mn 9,0001 7,232 10,224 8,040 8,054 Total employees 3,5001 3,510 3,725 4,066 3,923 thereof Blue-Collar 8501 889 1,050 1,321 1,346 thereof White-Collar 2,5501 2,520 2,500 2,590 2,500 thereof Apprentices 1001 101 175 155 77 Domestic oil production incl. NGL tons 965,112 998,451 942,030 944,741 944,641 Domestic natural gas production m3n bn 1.704 1.580 1.532 1.848 1.819 Crude oil import tons mn 6.770 7.425 7.946 7.645 7.698 Natural gas import m3n bn 9.920 9.463 9.779 8.740 9.212 Oil transport – Pipelines2 tons mn 6.800 7.400 7.900 7.602 7.831 Oil refi ning incl. semifi nished products tons mn 8.30 8.93 9.38 9.09 8.81 Domestic oil consumption tons mn 11.610 11.297 11.919 12.009 12.7858 Petroleum imports – products tons mn 6.972 6.275 6.719 6.808 7.142 Petroleum exports – products tons mn 2.218 2.240 2.441 2.125 1.635 Domestic gas consumption m3n bn 9.105 8.217 8.391 7.939 8.456 Number of fi lling stations3 2,656 2,716 2,802 2,810 2,812 thereof major-branded 1,635 1,663 1,809 1,844 1,921 Car population 6,091,881 5,981,075 5,873,281 5,796,973 5,722,624 thereof passenger cars and station wagons 4,441,027 4,359,944 4,284,919 4,245,583 4,204,969 1 APIA approximation 2 Adria-Wien-Pipeline 3 Excluding 301/302/302/300/314 agricultural diesel-outlets Austrian Petroleum Industry Association (APIA) Wiedner Hauptstrasse 63 1045 Vienna, Austria Tel. -
Nord Stream Delivers Gas to Lubmin
European gas grid gas European gas from Nord Stream is delivered to the the to delivered is Stream Nord from gas At the landfall facility in Lubmin, Germany, Germany, Lubmin, in facility landfall the At LUBMIN HEATH: European Mainland European High Tech AN ENERGY SITE A Connecting Nord the at Arrives Natural Gas Gas Natural for Quality In the context of the energy Hub on the strategy 2020 of Mecklenburg- Stream and Safety Western Pomerania, Lubmin developed into an energy hub German Coast with a range of energy sources Delivers More than 167 million standard cubic metres feeding electricity into the German (later: cubic metres) of natural gas can be distribution grid. The Lubmin landfall The Bovanenkovo oil and gas gas transport systems. Currently, condensate deposit is the main up to 36 billion cubic metres of processed in the receiving station in Lubmin facility is the logistical natural gas base for the Nord gas can flow through the OPAL every day. A sophisticated series of valves, filters, link between the Nord Gas to Lubmin DISMANTLING AND Stream Pipeline. Discovered and pipeline annually. This amount preheating, measuring and control facilities Stream Pipeline and CONSTRUCTION estimated gas reserves amount is enough to supply a third of ensure that the gas is of top quality, and the right the European gas to 4.9 trillion cubic meters which Germany with natural gas for a quantities are flowing to the connecting pipelines distribution grid. The makes the Bovanenkovo field a year. The pipeline runs south at the right pressure and temperature. In 1995, the Nord nuclear power natural gas that arrives reliable source of natural gas for from Lubmin to Brandov, in the plant in Lubmin was shut down. -
Landfall: the Starting Point of the Pipelines
from the Russian gas transportation system transportation gas Russian the from into the Nord Stream offshore pipelines pipelines offshore Stream Nord the into In Portovaya Bay, near Vyborg, gas is fed fed is gas Vyborg, near Bay, Portovaya In VYBORG – the Russian Coast Russian the Safe Operations Landfall: A TOWN AT A Connecting Hub Begins on on Begins THE CROSSROADS Gas Transport Transport Gas Start at The Starting Point OF CULTURES on the Russian Coast Portovaya Bay Vyborg is a Russian city with a 700-year history that still bears The Landfall facility through up to date diagnostics, adjusted in terms of pressure of the Pipelines the hallmarks of old Europe. Its maintenance and repair tech- and volume as well as temper- The initial section of the Nord Stream Pipelines on at Portovaya Bay in the Russian shore is vitally important to the safe narrow winding paved streets niques. The UGSS of Russia is ature, before being transported with low buildings and summer Russia is the logistical controlled round-the-clock by further. The OPAL pipeline links operation of the entire gas transport system. In cafés as well as its medieval link between the Uni- Gazprom’s Central Operations Nord Stream with the existing order to transport gas over a distance of 1,224 kilo- monuments create a special fied Gas Transport Sys- and Dispatching Department, European natural gas transport metres, a powerful compressor station is needed cosy atmosphere the year tem of Russia and the which ensures uninterrupted systems. It is capable of trans- to build sufficient pressure of nearly 220 bar. -
Visiongain -V1531/ Publisher Sample
Visiongain http://www.marketresearch.com/Visiongain -v1531/ Publisher Sample Phone: 800.298.5699 (US) or +1.240.747.3093 or +1.240.747.3093 (Int'l) Hours: Monday - Thursday: 5:30am - 6:30pm EST Fridays: 5:30am - 5:30pm EST Email: [email protected] MarketResearch.com Oil & Gas Pipelines Market Report 2014-2024: Existing Infrastructure, Capex & Length Forecasts, Contract Analysis & Leading Company Profiles Table 5.2.4 Eurasian Major Oil Pipeline Existing Infrastructure (Name, Length (km), Diameter (cm), Capacity (Mto/y), Route, Partners, Commission Date) Name Length Diameter Capacity Route Partners Commissi (km) (cm) (Mto/y) oned ONSHORE Adria- Wien 420 46 8 From: OMV, BP Austria, 1970 Transalpine Pipeline, Shell Austria, Esso Würmlach Austria, Agip To: Schwechat Refinery Adria oil 502 51 13.68 From: Omišalj Oil Jadranski naftovod, 1990 Terminal Naftna Industrija To: Srbije Százhalombatta (Duna refinery), Pančevo, Kostrena (Urinj refinery), Lendava, Bosanski Brod Baku - Supsa 833 - 7.4 From: State Oil Company of 1999 Baku (Sangachal Azerbaijan, Terminal), Azerbaijan Azerbaijan International To: Operating Company Supsa terminal in Georgia Baku- 1330 53 5 From: SOCAR, Azerbaijan 1997 Novorossiysk Baku (Sangachal International Terminal), Azerbaijan Operating Company, Transneft To: Novorossiysk, Russia Baku–Tbilisi– 1768 107 51 From: BP, SOCAR, Chevron, 2006 Ceyhan (BTC) Baku (Sangachal Statoil, TPAO, Eni, Terminal), Azerbaijan Total S.A., Itochu, Inpex, To: ConocoPhillips, Hess Ceyhan, Turkey Corporation Baltic 1300 102 76.5 -
L'agefi : 2021-07-02
Vendredi-mardi 2-6 juillet 2021 Numéro 51 A global leader in active fixed income Prix 4,50 CHF (TVA 2,5% incl.) - 4,50 EUR www.agefi.com - [email protected] JA-PP/JOURNAL — CASE POSTALE 61 www.pimco.ch CH-1026 ECHANDENS-DENGES FONDÉE EN 1950 ÉDITORIAL JOHAN FRIEDLI La Suisse se place enfin «Je ne vois aucun signe sur la carte de l’e-sport La Suisse sait se faire remarquer sur la scène sportive inter- nationale, mais elle ne peut pas en dire autant lors des com- de bulle hypothécaire» pétitions de jeux vidéo. Les clubs helvétiques sont presque invisibles alors que ce phénomène s’amplifie. Et que le vaudois IMMOBILIER. Le CEO des banques Raiffeisen, Heinz Huber, observe que la marche des affaires est «bonne» cette année. Logitech s’est imposé comme l’un des sponsors phares de ces keystone disciplines qui captivent les jeunes générations. Une équipe basée à Genève vient toutefois d’annoncer une si- gnature qui pourrait rebattre les cartes pour la scène suisse: le rachat de la place du FC Schalke 04 au sein du championnat européen de League of Legends, un jeu à cinq contre cinq mê- lant stratégie et action. Fondée au bout du lac par l’un des héritiers de l’empire AB InBev, BDS a mis sur la table quelque 29 millions de francs pour accéder à cette ligue fermée, soit trois fois plus que ce qu’avait payé le club de football allemand en 2016. C’est la première fois qu’une équipe suisse fait les gros titres de la presse spécialisée. -
The OPAL Exemption Decision: Past, Present, and Future
January 2017 The OPAL Exemption Decision: past, present, and future OIES PAPER: NG 117 Katja Yafimava The contents of this paper are the author’s sole responsibility. They do not necessarily represent the views of the Oxford Institute for Energy Studies or any of its members. Copyright © 2017 Oxford Institute for Energy Studies (Registered Charity, No. 286084) This publication may be reproduced in part for educational or non-profit purposes without special permission from the copyright holder, provided acknowledgment of the source is made. No use of this publication may be made for resale or for any other commercial purpose whatsoever without prior permission in writing from the Oxford Institute for Energy Studies. ISBN 978-1-78467-077-1 ii January 2017: The OPAL Exemption Decision: past, present, and future Preface To the casual gas reader, the dispute over the use of OPAL pipeline capacity is an issue for regulatory experts. But nearly eight years after the first regulatory decision and more than five years after the pipeline started operating it seems extraordinary that the share of capacity that Gazprom can use (if not required by other parties) remains unresolved. Indeed as we entered 2017, the controversy became even greater with the Commission being sued by a member state for having attempted to resolve this long-running problem causing the case to be referred to the European Court of Justice (CJEU). How and why we arrived at this point are the questions Katja Yafimava’s paper is designed to answer. Few of us, if we have only followed the headlines of the OPAL story, will have appreciated the complexity of the (competition and energy) regulatory issues, and in particular the impact of the evolving capacity allocation framework and development of capacity auction platforms, on the different options for resolving the dispute. -
Strategic Role of Oil Pipelines in EU Energy Supply Journal of Energy
Journal VOLUME 68 Number 1 | 2019 of Energy journal homepage: http://journalofenergy.com/ Dr.sc. Gordana Sekulić [email protected] Strategic Role Dr.sc. Dragan Kovačević [email protected] Damir Vrbić of Oil Pipelines [email protected] Vladislav Veselica [email protected] in EU Energy JANAF Plc. Supply Dominik Kovačević Faculty of Economics and Business, student [email protected] SUMMARY The oil pipelines have a strategic importance in the energy supply of the European Union (EU), especially given the fact that in the next two decades the crude oil will continue to be a dominant energy source, accounting for approx. 30% of the primary energy consumption, along with a reduction in the petroleum product consumption and growth in renewables. Europe has a widespread network of oil pipelines of approx. 22,5 thousand kilometres (without Russia), connecting refineries to import oil ports or to land–based crude oil sources. The refineries of the Central Eastern Europe are supplied mainly from the Druzhba oil pipeline. Recently, these refineries have diversified their crude oil supply routes and sources, by sea imports from the North Sea, the Middle East, Canada and others (Poland) or by the TAL — IKL oil pipelines (Czech Republic) and the JANAF oil pipeline (Hungary, Slovakia and the Czech Republic). Given the insufficient diversification of crude oil supply precisely of the Central Eastern European region, particularly the landlocked countries (and refineries respectively), the EU has envisaged, among the projects of common interests, also six connection oil pipelines with terminals. At the same time, they are the only pipelines planned to be constructed in Europe and financed by the oil companies’ funds. -
Gas Transport Begins from the Lubmin Landfall Facility in Germany the Landfall Facility Is the Logistical Link Between Nord Stream and the European Gas Grid
NEwSletter about ThE NaturalFacts gaS pIpEline THROUGH ThE baltic sea issue 20 / NovEmbEr 2011 The two lines of the Nord Stream pipeline system reach land at lubmin. at the landfall station, the natural gas is purified, measured, and if necessary adjusted to the proper temperature prior to transport. Gas transport Begins from the Lubmin Landfall Facility in Germany The landfall facility is the logistical link between Nord Stream and the European gas grid he landfall facility in lines also comes from the region into a gas transportation agree- Along its 470-kilometre route, the Lubmin is a hub of sorts, where the Yuzhno-Russkoye ment with OOO Gazprom Export pipeline runs through three Ger- t the actual switching gas field is located. It is the big- to book up to 55 bcm capacity man federal states, and crosses point of a cross-border project gest natural gas field developed annually. The pipelines will trans- a total of 172 roads, four high- that will contribute to a secure in Russia to date. Nord Stream port gas from the entry point in ways, 27 rail lines, and 39 bod- supply of energy to Europe for shareholders Gazprom, E.ON Russia to the exit point in Germa- ies of water. Since the gas loses decades. At the same time, the and Wintershall have a stake in ny, where the gas will be received pressure over the long route, it landfall facility is only a small part this gas field, where reserves by the connecting OPAL (Baltic is repressurised at a compres- of the puzzle in the entire frame- are estimated at 600 billion Sea Pipeline Link) and NEL (North sor station in Baruth, south of work of the onward transport of cubic metres (bcm). -
Nord Stream 2 – a Political and Economic Contextualisation
SWP Research Paper Stiftung Wissenschaft und Politik German Institute for International and Security Affairs Kai-Olaf Lang and Kirsten Westphal Nord Stream 2 – A Political and Economic Contextualisation RP 3 March 2017 Berlin All rights reserved. © Stiftung Wissenschaft und Politik, 2017 SWP Research Papers are peer reviewed by senior researchers and the execu- tive board of the Institute. They reflect the views of the author(s). SWP Stiftung Wissenschaft und Politik German Institute for International and Security Affairs Ludwigkirchplatz 34 10719 Berlin Germany Phone +49 30 880 07-0 Fax +49 30 880 07-100 www.swp-berlin.org [email protected] ISSN 1863-1053 Translation by Meredith Dale (Updated English version of SWP-Studie 21/2016) The translation of this paper was funded by the German Foreign Office. Table of Contents 5 Issues and Recommendations 7 Nord Stream 2 – A Commercial Project with Political Dimensions 9 Nord Stream 2 as a Business Project 9 The commercial logic of Nord Stream 2 AG from the Western business perspective 9 Gazprom’s calculation 12 Nord Stream 2 and Regulation in the EU’s Internal Market 12 The legal framework in the internal market 12 Nord Stream 2 – Legal approaches and contested issues 17 The connecting pipelines for Nord Stream 2 19 Market Trends, Market (Power) Relations and Security of Supply 19 Nord Stream 2 and the gas supply in north- western Europe 19 Nord Stream 2: Price trends and liquidity 20 Transit through Ukraine and unresolved problems 22 The gas markets in central eastern Europe 24 Nord Stream and changing gas flows in eastern Europe 26 Nord Stream 2 – The Political Dimension 26 Nord Stream 2 and the strategic energy triangle 27 Nord Stream 2 in the context of climate and environmental considerations 28 Criticisms from central eastern and south-eastern Europe 29 Interests of individual member states 35 Summary and Outlook 38 Recommendations for Germany and the European Union 39 Abbreviations Dr.