- Table of Contents
Russia is officially known as the Russian Federation and is a state in northern Eurasia. It is a federal semi-presidential republic comprising of 83 federal subjects. From the northwest to the southwest Russia borders to Norway, Finland, Estonia, Latvia, Lithuania, Poland, Belarus, Ukraine, Georgia, Azerbaijan, Kazakhstan, the People's Republic of China, Mongolia, and North Korea. Russia is the largest country in the world covering more than 1/8 of the world’s land area (17,075,400 sq km / 6,592,800 sq mi). It is not the most populated country in the world; Russia is occupying the 8th place with respect to the size of the population at 143,030,106 (2012 estimate). Higher domestic consumption and greater political stability strengthened economic growth since the turn of the 21st century. The country ended 2008 with its tenth straight year of growth, averaging 7% annually since 1998. Oil, natural gas, metals and timber account for more than 80% of Russian exports abroad. Since 2003, however, exports of natural resources started decreasing in economic importance as the internal market strengthened considerably. Despite higher prices, oil and gas only contribute 5.7% to the Russian GDP and the government predicts that this figure will drop to 3.7% by 2011. [1] Russia is the second largest gas consumer in the world after the United States. On top of that, Russia is the largest producer of natural gas. The total production in 2010 was 637,274 mcm of natural gas. [2]
| Basic Gas Facts | 2006 | 2007 | 2008 | 2009 | 2010 (estimate) |
|---|---|---|---|---|---|
| Gas reserves (bcm)** | .. | 57019 | 56425 | 60533 | 59650 |
| Gas production (mcm) | 639907 | 635190 | 650766 | 571546 | 637274 |
| Gas consumption (mcm) | 436492 | 445444 | 445699 | 426376 | 472425 |
| Gas imports (mcm) | 7077 | 7288 | 7781 | 8125 | 8125 |
| imports pipeline | 7077 | 7288 | 7781 | 8125 | 8125 |
| imports LNG | - | - | - | - | - |
| import dependency (%)* | - | - | - | - | - |
| Gas exports (mcm) | 199428 | 188620 | 192056 | 159708 | 176637 |
| Natural gas supply per capita (toe) | .. | .. | .. | .. | .. |
| Technically recoverable shale gas resources (bcm) | .. | .. | .. | .. | .. |
| Proved and probable coalbed methane resources (bcm) | 47643 | .. | .. | .. | .. |
| c = confidential; - = nill; ..= not available * Imports dependency of natural gas = (imports - exports) / consumption **FSU gas reserves Source: Natural gas information 2011 & OECD/IEA, 2011 & Energy Information Administration (2011) & US Environmental Protection Agency (2010) | |||||
| Basic Energy Facts | 2006 | 2007 | 2008 | 2009 | 2010e |
|---|---|---|---|---|---|
| Total Energy Consumption (mtoe) | 726.26 | 755.27 | 766.78 | .. | .. |
| CO2 Emissions, energy-related (Mt) | 1675.47 | 1627.2 | 1671.97 | 1556.66 | .. |
| CO2 intensity, energy-related (tCO2/toe) | 920 | 852 | .. | .. | - |
| Energy consumption per capita (toe/cap) | 5.11 | 5.34 | 5.45 | .. | - |
| CO2 per capita, energy-related (tCO2/cap) | 11.79 | 11.51 | 11.88 | 11.12 | - |
| c = confidential; - = nill; ..= not available Source: U.S. Energy Information Administration | |||||
Russia has significant unconventional resources. Total coalbed methane resources are estimated to be 47,643 bcm. The reserves in the Kuzbass basin are considered to be one of the largest resource development opportunities in the world. Coalbed methane in Russia could yield 2 bcm per year under suitable technological en economic circumstances. [1]
This section explores total primary energy consumption and gas demand by sector for Russia.
In 2010, Russia’s TPEC amounted to 662.9 mtoe, a 12% increase compared to 2009. Oil accounted for 156.4 mtoe while coal and gas accounted for 119.88 mtoe and respectively 386.59 mtoe.[1]
This section deals with gas reserves, exploration & production, gas imports and gas exports.
Russia holds the largest reserves of natural gas in the world. The estimated total reserves, measured for the FSU as a whole, are 59,650 bcm of natural gas at the end of 2010, or 31.51% of the world’s reserves. In 2010, Russia was the largest producer of natural gas in the world, closely followed by the US.[1] Nevertheless, its reserves-to-production ratio is 93 years [1], higher than the world’s average RP ratio of 68.6 years.[2]
The production of natural gas is predominantly located in Siberia. The largest fields in this area include Yamburg, Urengoy and Medvezh’ye. These fields are licensed to Gazprom, the state-run company that is responsible for 90 percent of total gas output in Russia. Extraction from these fields, however, is gradually decreasing. Therefore Gazprom invests in the giant Yamal project from 2008 onwards. More recently, some minor companies have gained in importance in the production of natural gas, for example Novatek. [1]
| By country of origin (in mcm) | 2006 | 2007 | 2008 | 2009 | 2010 | %total 2010 |
|---|---|---|---|---|---|---|
| FSU | 7077 | 7288 | 7781 | 8125 | 8125 | 100% |
| %Total Consumption | 1.62% | 1.64% | 1.75% | 1.9% | 1.72% | - |
| Total | 7077 | 7288 | 7781 | 8125 | 8125 | - |
| c = confidential; - = nill; ..= not available Source: Natural gas information 2011 & OECD/IEA, 2011 | ||||||
| By transport type (in mcm) | 2006 | 2007 | 2008 | 2009 | 2010 | %Total 2010 |
|---|---|---|---|---|---|---|
| Pipeline imports | 7077 | 7288 | 7781 | 8125 | 8125 | 100% |
| LNG imports | - | - | - | - | - | - |
| Total | 7077 | 7288 | 7781 | 8125 | 8125 | - |
| c = confidential; - = nill; ..= not available Source: Natural gas information 2011 & OECD/IEA, 2011 | ||||||
Russia imports gas from Turkmenistan as a result of long-term contracts. [2]. Detailed accounts of Russia’s imports are not available.[1]
| By country of destination (in mcm) | 2006 | 2007 | 2008 | 2009 | 2010 | %total 2010 |
|---|---|---|---|---|---|---|
| Armenia | .. | - | 2254 | 1629 | 1551 | 0.88% |
| Austria | .. | 5411 | 6058 | 5339 | 5698 | 3.23% |
| Belarus | .. | 20625 | 21061 | 17617 | 21658 | 12.26% |
| Belgium | .. | 794 | 852 | 492 | 458 | 0.26% |
| Bosnia & Herzegovina | .. | 423 | 442 | 234 | 234 | 0.13% |
| Bulgaria | .. | 3427 | 3490 | 2648 | 2738 | 1.55% |
| Croatia | .. | 1055 | 1083 | 1000 | 1050 | 0.59% |
| Czech Republic | .. | 6800 | 7500 | 6683 | 7460 | 4.22% |
| Estonia | .. | 1003 | 962 | 653 | 701 | 0.40% |
| Finland | .. | 4578 | 4739 | 4270 | 4708 | 2.67% |
| France | .. | 5955 | 6772 | 7409 | 6654 | 3.77% |
| Georgia | .. | 1680 | 1295 | 200 | 200 | 0.11% |
| Germany | .. | 38295 | 40735 | 35751 | 38938 | 22.04% |
| Greece | .. | 3120 | 2798 | 2023 | 2064 | 1.17% |
| Hungary | .. | 7909 | 8855 | 7964 | 6771 | 3.83% |
| Italy | .. | 22667 | 23486 | 19999 | 14805 | 8.38% |
| Kazakhstan | .. | 1798 | 1495 | 600 | 740 | 0.42% |
| Latvia | .. | 1645 | 1368 | 1743 | 1124 | 0.64% |
| Lithuania | .. | 3720 | 3125 | 2737 | 3110 | 1.76% |
| Luxembourg | - | 308 | 295 | 305 | 327 | 0.19% |
| Moldova | .. | 2715 | 2725 | 2035 | 2035 | 1.15% |
| Netherlands | .. | 4747 | 5161 | 3627 | 4039 | 2.29% |
| Poland | .. | 6855 | 7783 | 8166 | 9756 | 5.52% |
| Romania | .. | 4428 | 4321 | 1979 | 2271 | 1.29% |
| Serbia | .. | 2168 | 2177 | 1565 | 1667 | 0.94% |
| Slovakia | .. | 6220 | 6266 | 5834 | 5965 | 3.38% |
| Slovenia | .. | 572 | 509 | 494 | 496 | 0.28% |
| Turkey | .. | 22752 | 22962 | 19473 | 17575 | 9.95% |
| Ukraine | .. | - | 1376 | 22189 | 36593 | 20.72% |
| Kuwait | .. | - | - | 400 | 90 | 0.05% |
| China | .. | - | - | - | 523 | 0.30% |
| Chinese Taipei | .. | - | - | - | 597 | 0.34% |
| Japan | .. | - | - | 6069 | 8369 | 4.74% |
| South Korea | .. | - | - | 1328 | 3827 | 2.17% |
| Other | .. | 106 | 121 | 80 | 80 | 0.05% |
| %Total Production | .. | 29.70% | 29.51% | 27.94% | 27.72% | - |
| Total | 199428 | 188620 | 192056 | 159708 | 176637 | 100% |
| c = confidential; - = nill; ..= not available Source: IEA Natural Gas Information 2011 | ||||||
The major export markets of Russia are Germany, Ukraine and Belarus. In 2010 Russia exported about 177 bcm of gas. [1]
This section deals with the gas grid, LNG terminals and storage facilities.
Pipelines
At the moment, there are 9 large pipelines transporting gas in Russia. 7 of these are export pipelines: Yamal-Europe I, Northern Lights, Soyuz, Bratrstvo, Blue Stream, North Caucasus and Mozdok-Gazi-Magomed. The first four transport natural gas through Belarus and/or Ukraine to other European countries, whereas the others transport natural gas to Turkey and some former Sovjet Union countries.[2] Pipelines under construction Yamal-Europe II: Under this proposal, the Yamal-Europe I pipeline will be expanded to transport an extra 1 tcf of natural gas to Europe. The Yamal-Europe I pipeline currently transports natural gas from Russia to Germany and Poland transiting Belarus. Gazprom is currently seeking to reach an agreement with Poland about the exact route of Yamal-Europe II pipeline.[2]
Southstream: The southstream pipeline runs from Russia through the Black Sea to Bulgaria and Romania. From Bulgaria, two options for the pipeline continuation are being considered today. First the northwestern route, towards Austria and Slovenia through Serbia and Hungary. And second a southwestern route, towards Greece and Italy. Total capacity of the southstream pipeline is 63 bcm and the total length of the offshore section of the pipeline is 900 kilometres. Construction of the pipeline will start in 2013 and the first gas supplies are scheduled for the end of 2015.[3]
Nordstream: The nordstream pipeline runs from Russia to Germany and goes for a large part through the Baltic Sea. It is a twin pipeline system with a total off-shore length of 1,224 kilometres that will be capable of transporting 55 bcm a year when fully operational. Construction of the first pipeline began in April 2010 and finished in June 2011. Construction of the second pipeline began in May 2011 and is scheduled to be finished at the end of 2012. The first pipeline is operational and started transporting natural gas in November 2011.[4]
- 1. EIA International Energy Statistics 2010-2011
- 2. Natural Gas Information © OECD/IEA, 2011
- 3. South Stream
- 4. Nord Stream
Currently one LNG plant is operational in Russia, and three are proposed.
| Site | Storage | - | Liquefaction | - | Owner | Operator | TPA | Start-up | Status |
|---|---|---|---|---|---|---|---|---|---|
| - | Tanks | Cap.* | #Trains | Cap** | - | - | - | - | - |
| Sakhalin II | 2 | 200 | .. | 9.55 | Sakhalin Energy Invest Company | Sakhalin Energy Invest Company | .. | 2009 | E |
| Yamal LNG | .. | .. | .. | .. | .. | .. | .. | .. | P |
| Shtokman | .. | .. | .. | .. | .. | .. | .. | .. | P |
| Baltic LNG plant | .. | .. | .. | .. | .. | .. | .. | .. | P |
| c = confidential; - = nill; ..= not available E = existing; U = under construction; P = proposed * capacity in m3 x1,000 in LNG **nominal capacity in bm3/y. Source: GIIGNL 2010, Global LNG Info 2012 | |||||||||
There are 25 UGS facilities operational in the Russian Federation, of which 8 were built in aquifers and the remaining 17 – in depleted gas fields. All fields are operated by Gazprom. Expansion of the underground gas storage capacities is a strategic objective of Gazprom. By the 2008–2009 heating season start-up Gazprom raised the daily average send-out and the peak daily send-out of UGS facilities to 500 and 620 million cubic meters, respectively. The commercial gas volume accounted for 64 billion cubic meters. [1]
This section deals with the gas market regulation in upstream, the transmission grid and downstream.
Russia is the world’s largest producer and exporter of natural gas. The country also holds the world’s largest reserves of natural gas. Gazprom is the 38% government-owned natural gas monopolist dominating the sector. The company accounts for around 90% of the total domestic production and represents the main player in exports through its subsidiary Gazexport. It also holds more than 65 percent of proven reserves in Russia. Russian exports are mainly directed to Eastern and Western Europe, the Commonwealth of Independent States (CIS), Turkey, Japan and other Asian countries. Russia imports gas from Turkmenistan as a result of long-term contracts. Major production growth is expected to be party contributed to other emerging companies like Novatek, Itera and Northgaz. [1], [2]
- 1. EIA International Energy Statistics 2010-2011
- 2. International Energy Regulation Network 2006-2009
Gazprom controls the Russian pipeline network, with obligations to grant access to independent gas producers. Gas export infrastructure is property of Gazprom over which it does not have any TPA requirements. [1]
Gazprom has the duty to supply gas to the Russian domestic market at government-regulated prices, far below the export market price. [1]
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