Europe is the second smallest of the seven continents by surface area, extending west from the Dardanelles, Black Sea, and Ural Mountains to the Atlantic Ocean.

The European Commission, responsible for proposing legislation for the benefit of the European Union (EU), stated in its 2010 report entitled On the implementation of the trans-European energy networks in the period 2007–09 “Europe’s future economic growth and stability depend on timely and adequate investments in energy infrastructure.”

In March 2010, the European Commission announced €1,390 million in grants to over 30 gas projects throughout Europe, including pipelines, to ensure that the projects are developed without delay.

The Commission said that the selected projects reflect the need to better interconnect all EU member states and reduce the isolation of the more remote nations – such as the three Baltic states, Ireland and Malta – and that the funding programme also responds to the need for greater security of gas supplies by supporting projects for reverse flow in nine member states as well as the pipeline projects aimed at diversifying gas imports, such as the Nabucco and Galsi pipelines.

Bringing gas from Russia

In the introduction to a collection of essays published by the Centre for European Reform titled Pipelines Politics and Power, the Centre’s Deputy Director Katinka Barysch noted “Russia is the world’s largest gas producer. The EU is the world’s biggest gas market. The two are neighbours. Logically, the EU and Russia should have a well-developed energy relationship.”

Currently there are a number of pipeline projects proposed or under construction to increase delivery of Russian gas to European markets.

Construction is underway on the 1,224 km Nord Stream Pipeline, which involves the construction of two offshore parallel 48 inch pipelines, each with a capacity of 27.5 Bcm/a.

The pipeline will establish a direct link between Russia’s vast gas reserves, via Portovaya Bay in Russia, and the European gas transportation systems, and will deliver gas to Belgium, the United Kingdom, Germany, Denmark, the Netherlands, France, and the Czech Republic.

At the landfalls at Portovaya Bay, Vyborg, and at the German Landfall at Lubmin, near Greifswald in Germany, both strings of the pipeline have also already been constructed and pulled ashore.

The Castoro Sei pipelay vessel has commenced pipelaying activities in Danish waters after picking up the pipeline in German waters where the flat-bottomed Castoro Dieci pipelay vessel had completed the difficult shallow-water section at and near the German landfall ahead of schedule.

At the other end of the pipeline, the world’s largest pipelay vessel, Allseas’ Solitaire, has reached the Finnish Exclusive Economic Zone after completing a key section of the pipeline in Russian waters.

The pipeline is on schedule to start transporting gas from Russia to customers in the EU in late 2011.

Construction works are on schedule for the 470 km Ostsee Pipeline Anbindungs-Leitung (OPAL) in Germany.

The pipeline will run from the German Baltic Sea coast through Mecklenburg-West Pomerania, Brandenburg and Saxony to the Czech Republic, and is one of two pipeline projects proposed to connect the Nord Stream Pipeline to the existing pipeline grid in middle and Western Europe, the other one being the Norddeutsche Erdgas Leitung (NEL) Pipeline.

The OPAL Pipeline is being built by Wingas on behalf of OPAL NEL Transport and E.ON Ruhrgas AG and is scheduled to come on stream in October 2011.

The NEL Pipeline is a planned 440 km natural gas pipeline in Germany, which will run from Greifswald to Rehden. It will connect the Nord Stream Pipeline with the existing Rehden – Hamburg and MIDAL gas pipelines. Together with MIDAL, the NEL Pipeline will create a Greifswald–Bunde connection.

The majority of pipeline works are scheduled to be completed during 2011–12 and the pipeline is expected to come online in 2012. The invitations of tender for the construction work of the NEL Pipeline are currently underway.

Serbia has commenced construction on a 120 km pipeline, which will transport gas from Nis to Leskovac and then on to Vranje. It is anticipated to connect with the proposed South Stream Pipeline.

Gazprom’s proposed South Stream Pipeline will include a 900 km offshore section traversing the Black Sea from the Beregovaya compressor station on Russia’s southwest coast to the Bulgarian coast. From Bulgaria the pipeline will transport up to 63 Bcm/a of natural gas to south and central Europe.

Two possible routes are under review for South Stream’s onshore section from Bulgaria – one heading northwest and the other heading southwest. A feasibility study is scheduled to be completed in early 2011, and construction is expected to start in 2013, with a commissioning date anticipated for late 2015.

Intergovernmental agreements have been signed with Bulgaria, Serbia, Hungary, Greece, Slovenia, Croatia and Austria in order to implement the project’s onshore section beyond Russia.

Importing Russian oil

Russian firm Transneft is continuing construction of the 1,170 km Second Baltic Pipeline System (BPS-2), after it reached the 960 km point in September.

The BPS-2 will extend from the Unecha junction of the Druzhba Pipeline, near the Russia–Belarus border, to the Ust–Luga terminal on the Gulf of Finland.

Construction of the project commenced in June 2009 and is expected to be completed in early 2012.

The preliminary environmental impact statement for the Greek section of the Burgos – Alexandroupolis Pipeline – also known as the Trans-Balkan Pipeline – was approved in August 2010.

The oil pipeline project involves the transportation of Russian and Caspian oil from the Bulgarian Black Sea port of Burgos to the Greek Aegean port of Alexandroupoli. It would be an alternative route for Russian oil bypassing the Bosporus and the Dardanelles.

However, Bulgaria’s Prime Minister Boyko Borisov has created uncertainty over Bulgaria’s commitment to the pipeline after he announced in June 2010 that Bulgaria would not take part in the pipeline. Despite this, Bulgaria’s Council of Ministers released a statement immediately following the Prime Minister’s statement to clarify the Government’s position, “The Bulgarian Government hasn’t made a final decision regarding the construction of the Burgos – Alexandroupolis Oil Pipeline. Bulgaria is going to wait for the completion of the environmental assessment of the oil pipeline, and only then will it make a final decision.”

A spokesperson for Greece’s Deputy Minister of Environment, Energy and Climate Change said that the final investment decision is expected to be taken during the second half of 2011 after the approval of the environmental studies. Depending on the timely approval of the environmental studies by the governments of Greece and Bulgaria, construction on the pipeline is scheduled to commence by November 2013 with a scheduled commissioning date of the second quarter of 2016.

Increasing energy supplies from Algeria

The proposed Galsi Pipeline project aims at connecting Algerian gas resources to the Italian and European markets through a new route via Sardinia and the Italian mainland.

The overall length of the system is 851 km, which includes a 285 km Algeria – Sardinia section, a 272 km onshore Sardinia section and a 280 km section from Sardinia – Tuscany. The pipeline is planned to have a total capacity of 8 Bcm/a.

Construction on the Galsi Pipeline is scheduled to begin in 2011, and will see pipeline constructed at depths of 2,824 m. Operation is planned for 2012–13.

Commissioning is underway on the 210 km Medgaz Pipeline. The pipeline is designed to transport up to 8 Bcm/a of gas from Beni Saf on the Algerian coast to Almería, Spain.

Construction of the offshore pipeline was completed on schedule by Saipem. The Castoro Sei pipelay vessel laid the offshore section corresponding to the shallow areas up to a depth of 550 m, while the Saipem 7000 laid the portion of the pipe in the deepwater section down to 2,160 m.

The Medgaz Pipeline is a strategic project for Algeria, Spain, and the rest of Europe, supplying natural gas directly from Algeria, without requiring transit through third countries.

Connecting to the petroleum resources of the Caspian

The final investment decision for the Nabucco Pipeline has been delayed until 2011 because a formal agreement has not been completed to secure gas supply from Azerbaijan.

Head of International Pipeline Projects at Nabucco shareholder company OMV Michael Ulbrich said “Talks with the main supplier country, Azerbaijan, are slow and that conclusion will be postponed to 2011.”

In August, the consortium announced the feeder line concept for the project in which two pipelines will be constructed to the Turkish – Georgian border and the Turkish – Iraqi border respectively, to supply gas into the proposed pipeline.

Construction of the 56 inch diameter Nabucco Pipeline is scheduled to begin by the end of 2011, with first gas expected to flow by the end of 2014. It will operate at a pressure of 10,000 kPa, and it is estimated that 11 compressor stations will be constructed along the pipeline.

The pipeline will run from Turkey to Austria, crossing Romania, Bulgaria and Hungary, and is expected to have a capacity of 31 Bcm/a.

The respective engineering works have been ordered for the two feeder lines. Depending on the exact routes of the proposed feeder lines, the total length of the pipeline project is estimated to increase to approximately 4,000 km.

The pipeline promoters are understood to have decided against constructing a feeder line to the Turkish – Iranian border, citing the current political situation in Iran.

Project shareholders include OMV Gas&Power, MOL, Transgaz, Bulgarian Energy Holding, BOTAS and RWE.

The final investment decision for the 800 km Interconnector Greece – Italy (IGI) is expected to be made in December 2010.

All environmental authorisations are in place for the project, which will consist of a new 210 km offshore pipeline that will connect the Greek and Italian natural gas transportation systems and a 590 km pipeline to be constructed onshore in Greece.

The offshore section of the IGI, known as the Poseidon project, will complete the natural gas corridor through Turkey, Greece and Italy following the inauguration of the 296 km Turkey – Greece Pipeline in 2007. The Interconnection Turkey Greece Italy (ITGI) will allow Italy and the rest of Europe to import natural gas from the Caspian Sea and the Middle East.

The onshore section of the Turkey – Greece – Italy pipeline that remains to be implemented in Greece will be constructed by Greece’s public gas corporation DEPA’s subsidiary The Hellenic Gas Transmission System Operator (DESFA) and will run approximately 590 km from Komotini to the IGI Poseidon metering station in Thesprotia.

The 42 inch diameter pipeline will have a capacity of 15 Bcm/a of gas and will includes the construction of two compressor stations, one at Komotini and one at Nea Mesimbria, Thessaloniki.

DEPA and Edison have entered discussions with natural gas suppliers in the Caspian area, specifically Azerbaijan, for the supply that will be transmitted through the pipeline system.

Front-end engineering and design work commenced in April 2010 and the service control verification and implementation study commenced in July 2010. The tender for pipe supply is progressing after completion of the pre-qualification stage, while the detailed marine survey tender is being finalised.

Construction is scheduled to begin in 2012 and it is anticipated that the pipeline will be brought online in mid-2015.

Romania, Azerbaijan and Georgia have signed a Memorandum of Understanding for the Azerbaijan – Georgia – Romania Interconnection (AGRI) LNG Project, which would include the construction of a pipeline to transport gas from Azerbaijan to Georgia’s Black Sea coast. From here the gas would be liquefied and shipped to Romania’s coast where it would be re-gasified and delivered into Romania’s pipeline system and shipped to European markets.

Proponents from both the AGRI LNG project and the Nabucco Pipeline will be seeking commitments from Azerbaijan to secure access to the country’s finite gas resources.

Albanian Ministers and government officials have endorsed the revised route of the Trans Adriatic Pipeline (TAP) through Albania.

Traversing a total distance of 520 km, the pipeline will originate near Thessaloniki, Greece, and cross Albania and the Adriatic Sea, before terminating near Brindisi, Italy. The pipeline will have an initial capacity of 10 Bcm/a of natural gas.

TAP’s construction schedule aligns with the development of the Shah Deniz gas field in Azerbaijan. The project is currently at the front-end engineering design stage, with preparations underway for the final investment decision and construction. TAP will transport gas from the Caspian Sea and Middle East regions to Italy, through Turkey, Greece and Albania. The pipeline will have a capacity of 10 Bcm/a.

The proposed White Stream Gas Pipeline will provide a link between the South Caucasus Gas Pipeline in Georgia and Romania. The length of the pipeline is estimated to be 1,100 km, which includes a 700 km offshore section to be constructed across the Black Sea in water depths in excess of 2,000 m connecting Georgia to Crimea in the Ukraine.

A spokesperson for the consortium said that the feasibility studies carried out have proven the technical, economic and legal feasibility of the project. Detailed routing studies are now moving forward, particularly for the Black Sea crossing, including a reconnaissance marine survey and environmental impact studies.

The project is currently on schedule for a final investment decision towards the end of 2013 with construction starting in 2015 and the first pipeline with 8 Bcm/a capacity becoming operational in 2017–18, shortly after the start-up of the Nabucco Pipeline.

After the initial pipeline is bought online, construction on a further three pipelines of similar capacity will commence to meet expected export demand of both Azerbaijan and Turkmenistan.

Transnafta has proposed a 1,320 km pipeline to transport crude oil from the Caspian and Black Sea region to the Pan-European Oil Pipeline (PEOP).

PEOP is a newer manifestation of a project formerly known as the Constanta – Pancevo – Omisalj –Trieste Pipeline, and is designed to take Caspian and Russian oil from the Black Sea port of Constanta in Romania, through Serbia, Croatia and Slovenia, to Trieste in Italy. From there it would join with the existing Trans-Alpine Pipeline and the Italian pipeline network, with any excess oil to be shipped from Genoa in Italy.

The pipeline would transport approximately 1.2 MMbbl/d of oil to supply Italy and central Europe, with around nine per cent of the oil to be supplied to Serbia and Croatia. The feasibility study for the project had originally estimated that the pipeline would commence operations in 2011, however no tender for construction works has been announced.

The three European gas exporters

Other than Russia, Denmark, the Netherlands, and Norway are the only European countries which are net exporters of natural gas – their annual export volumes being 5.3 Bcm, 50.1 Bcm, and 86.1 Bcm respectively in 2007.

The Netherlands’ state-owned infrastructure company N.V. Nederlandse Gasunie is currently working on the Dutch Government’s ‘gas roundabout’ concept, which will see the Netherlands becoming the heart of a major gas hub for northwestern Europe.

Involved is a network of 15,000 km high-pressure gas pipelines, many up to 48 inches in diameter, in both the Netherlands and Germany. The idea is to combine gas from Dutch and German fields within the Gasunie pipeline network with gas from other international sources – including Russia, Norway, the Middle East, Asia, and Africa – and to transport it onward to the United Kingdom, Germany, France, Belgium, and consumers in other European countries.

As part of the ‘gas roundabout’ project, a new pipeline being constructed is the 485 km, 48 inch diameter, North – South Pipeline, which is in two sections. The longer one is in the east of the country and runs from Rysum in northern Germany and Oude Statenzijl in the north of the Netherlands, to Schinnen in the south. The shorter section runs from a new compressor station at Wijngaarden in the centre of the country to an export station at Zelzate in the southwest, on the Belgian border.

Meanwhile, the Baltic Gas Interconnector proposed to connect the gas networks of southern Sweden, northern Germany and eastern Denmark is currently under review.

Despite receiving authorisation for each of the three countries involved in the project, the possibility of the Nord Stream Pipeline being extended to the Swedish gas pipeline network combined with a change in Sweden’s energy priorities to promote renewable energy options, has led to a delay in the project, originally anticipated to enter into operation in 2010.

The Baltic Pipe – aimed at connecting the Danish and Polish gas systems to Norwegian gas resources – has been delayed after the Skanled Pipeline project was suspended.

The gas pipeline would be offshore with an approximate length of 38–45 km, and would have an estimated capacity of 2.5 Bcm/a of gas.

The Skanled Pipeline aims at connecting the Danish and Swedish gas systems to Norwegian gas resources. The planned pipeline will go from Karsto, on the Norwegian West Coast, to the Norwegian East Coast, and on to Sweden and Denmark.

The pipeline is expected to have a capacity of 8.3 Bcm/a and a total length of 1,130 km, including an 860 km offshore section, a 250 km Danish onshore section and a 16 km Swedish onshore section.

Though feasibility studies have been performed, the project was suspended in April 2009 due to increased commercial risk combined with the global economic developments that have given an uncertain view on future gas demand. The project may be re-launched if commercial conditions become more favourable in the future.

Exploring the North Sea

First gas has begun to flow through the Gjøa Gas Pipeline, located in the Norwegian North Sea, to Great Britain’s Far North Liquids and Associated Gas System (FLAGS).

The 28 inch pipeline runs 130 km from the Gjøa/Vega fields to the tie-in point with the Shell-operated FLAGS Pipeline, which will carry rich gas to the receiving terminal at St Fergus in Scotland.

The Gjøa Gas Pipeline will initially be used to import gas from FLAGS to enable the completion of the Gjøa platform. Once production commences at the Gjøa platform the pipeline will be used to export the gas.

Overall gas production capacity for Gjøa, which lies about 40 km north of the Fram field, will be 17 MMcm/d.

Oil from the fields is due to be exported to the Mongstad terminal near Bergen via a new 50 km pipeline tied into Troll Oil Pipeline II.

Getting (inter)connected

Some of the pipeline projects proposed or underway to connect Europe’s gas transmission system:

• FGSZ declared the results of binding Open Season for the Slovakia – Hungary Interconnector as unsuccessful for the Hungarian part of the planned interconnection. Despite the result the company will analyse further alternatives to have the Slovakia – Hungary Interconnector project potentially financed and constructed in another way.
• The proposed Poland – Lithuania gas pipeline would link the Baltic states of Estonia, Latvia and Lithuania to the Polish gas supply and transmission system. Poland’s gas transmission operator Gaz-System and Lithuania’s Lietuvos Dujos will conduct a feasibility study to determine the possibility of constructing a gas pipeline between the two countries.
• Bulgarian Energy Holding, Greece’s DEPA and Italy’s Edison International Holding have reached a development agreement regarding the construction of the Interconnection Pipeline Greece – Bulgaria (IGB). The 160 km IGB, proposed to transport gas from Komotini, Greece, to Stara Zagora, Bulgaria will have a capacity to transport between 3 and 5 Bcm/a and is due to come into operation in 2013.
• Bulgaria’s Minister for Economy, Energy and Tourism Traycho Traykov, and Serbia’s Minister for Mining and Energy Petar Skundric have signed a joint statement paving the way for the proposed 180 km Bulgaria – Serbia Gas Pipeline. The pipeline would have a capacity of 2 Bcm/a – starting in Nis, Serbia and cross the border near Dimitrovgrad in Bulgaria – and would be the first interconnector between the transmission systems of Bulgaria and Serbia.
• In Spain several gas interconnections are currently under construction: Tivissa – Paterna Pipeline, Tivissa – Castelnou Pipeline, Zarza Tajo – Yela Pipeline, and Yela – Villar Arnedo Pipeline. These four interconnections have a total length of 681 km and a capacity of 3.14Bcm/a and are scheduled to enter into operation by the end of 2012.