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A secure energy supply for EuropeSouth Stream

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A secure energy supply for EuropeSouth Stream Powered By Docstoc
					FACTSHEET 02 | 2011

Facts and background information
Published by: Wintershall




    A secure energy supply for Europe:
    South Stream

                    Challenge:
                    EU’s growing natural gas requirements
                                                                   630 bill. m3
                                                                      22      Additional imports required
                                560 bill. m   3                       30      Nabucco
                                                                      55      Nord Stream

                                                                      63      South Stream

                                                                                      Import gap
                                                  Growing import                      170 bill. m3
                                    370
                                                   requirements

                                                                     370




                                    190
                                                     EU’s own                     Existing imports
                                                                      90
                                                    production
                                                                                  Own production
                                   2010                              2030
                                                                                                     (source: CERA)




                South Stream at a glance.
                – The first direct connection of Southeastern and Southern Europe to the world’s largest
                  natural gas reserves in Russia
                – The planned transcontinental gas pipeline is one of Europe’s largest infrastructure projects
                – The overall project consists of three components:
                  1. Onshore: Expansion of capacities in Russia to the Black Sea
                  2. Offshore: Construction of gas pipelines through the Black Sea to Europe
                  3. Onshore: Extension of the pipelines through Southeastern and Southern Europe to Austria and Italy
                – Planned total capacity: 63 billion cubic meters of natural gas a year
                – An important contribution to plugging the estimated import gap for the EU of around 170 billion cubic meters
                  p. a. as of 2030
                                                                                                                       (source: CERA)
More pipelines for more supply security
Apart from South Stream, there are two other major gas pipe-      However: According to forecasts, all three pipelines together will
lines being built or planned in Europe: Nord Stream and           not be able to cover what the EU will need to import. In 2030,
Nabucco. The pipelines require investments running into the       around 170 billion cubic meters of natural gas will have to be im-
billions, which means investors and producers will be tied        ported by the EU 27 above and beyond current levels. Even the
long-term to the European market.                                 planned supply capacities of the three pipeline projects together
                                                                  means there will still be an import gap of 22 billion cubic meters.



The direct way is better: The offshore route
                                                                  Nord Stream shows how climate-friendly natural gas can be
                                                                  supplied directly to consumers without any transit risks. In co-
                                                                  operation with its partners, Wintershall will successfully com-
                                                                  plete the offshore pipeline through the Baltic Sea in the fall of
                                                                  2011 – and has extensive knowledge and project experience in
                                                                  constructing underwater pipelines.

                                                                  South Stream has the same basic principle and is to supply nat-
                                                                  ural gas directly to the southeast of the EU so as to strengthen
                                                                  supply security. The plans envisage laying four parallel pipe-
                                                                  lines, each 940 kilometers in length, at a depth of up to 2,000
                                                                  on the bottom of the Black Sea from Russia to Bulgaria and
                                                                  Romania. The natural gas will then be distributed by onshore
                                                                  lines to Austria and Italy.




European partners                                                 to participate. There are plans to involve France’s EdF in the
                                                                  project as well. This international partnership will comply with
The founding shareholders of South Stream AG are Gazprom          the very strictest standards of safety and environmental and cli-
and Italy’s ENI. Wintershall will have a 15% stake in imple-      mate protection.
menting the offshore route. As a result, the company will also
strengthen its existing commitment in gas trading in Romania
and Bulgaria. ENI’s stake will be reduced to enable Wintershall

				
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