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