Yamal–Europe Pipeline
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The Yamal–Europe natural gas pipeline is a
pipeline A pipeline is a system of Pipe (fluid conveyance), pipes for long-distance transportation of a liquid or gas, typically to a market area for consumption. The latest data from 2014 gives a total of slightly less than of pipeline in 120 countries ...
connecting Russian
natural gas field A petroleum reservoir or oil and gas reservoir is a subsurface accumulation of hydrocarbons contained in porous or fractured rock formations. Such reservoirs form when kerogen (ancient plant matter) is created in surrounding rock by the prese ...
s in the
Yamal Peninsula The Yamal Peninsula () is located in the Yamalo-Nenets Autonomous Okrug of northwest Siberia, Russia. It extends roughly 700 km (435 mi) and is bordered principally by the Kara Sea and its Baydaratskaya Bay on the west, and by the G ...
and
Western Siberia Western Siberia or West Siberia ( rus, Западная Сибирь, p=ˈzapədnəjə sʲɪˈbʲirʲ; , ) is a region in North Asia. It is part of the wider region of Siberia that is mostly located in the Russia, Russian Federation, with a Sout ...
with
Poland Poland, officially the Republic of Poland, is a country in Central Europe. It extends from the Baltic Sea in the north to the Sudetes and Carpathian Mountains in the south, bordered by Lithuania and Russia to the northeast, Belarus and Ukrai ...
and
Germany Germany, officially the Federal Republic of Germany, is a country in Central Europe. It lies between the Baltic Sea and the North Sea to the north and the Alps to the south. Its sixteen States of Germany, constituent states have a total popu ...
, through
Belarus Belarus, officially the Republic of Belarus, is a landlocked country in Eastern Europe. It is bordered by Russia to the east and northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Belarus spans an a ...
. The Poland portion ceased operating in 2022. In
Gazprom PJSC Gazprom ( rus, Газпром, , ɡɐsˈprom) is a Russian State-owned enterprise, majority state-owned multinational Energy industry, energy corporation headquartered in the Lakhta Center in Saint Petersburg. The Gazprom name is a contract ...
's development project nomenclature the pipeline consists of four sections, Bovanenkovo–Ukhta (), Ukhta–Torzhok (), the western section from
Torzhok Torzhok () is a types of inhabited localities in Russia, town in Tver Oblast, Russia, located on the Tvertsa River along the federal highway M10 highway (Russia), M10 and a branch of the Oktyabrskaya Railway division of the Russian Railways. The ...
also confusingly named Yamal–Europe (), and the partly parallel SRTO–Torzhok branch section ().


History

Planning for the Yamal–Europe pipeline started in 1992. Intergovernmental treaties between
Russia Russia, or the Russian Federation, is a country spanning Eastern Europe and North Asia. It is the list of countries and dependencies by area, largest country in the world, and extends across Time in Russia, eleven time zones, sharing Borders ...
,
Belarus Belarus, officially the Republic of Belarus, is a landlocked country in Eastern Europe. It is bordered by Russia to the east and northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Belarus spans an a ...
and
Poland Poland, officially the Republic of Poland, is a country in Central Europe. It extends from the Baltic Sea in the north to the Sudetes and Carpathian Mountains in the south, bordered by Lithuania and Russia to the northeast, Belarus and Ukrai ...
were signed in 1993. In 1994,
Wingas SEFE Energy is a gas distribution company located in Kassel, Germany. It is a subsidiary of Securing Energy for Europe. History Wingas was established in 1993 by BASF subsidiary Wintershall and Gazprom. Since 25 October 2007, Wintershall owned ...
started building the Poland section of the pipeline. The first gas was delivered to
Germany Germany, officially the Federal Republic of Germany, is a country in Central Europe. It lies between the Baltic Sea and the North Sea to the north and the Alps to the south. Its sixteen States of Germany, constituent states have a total popu ...
through the Belarus-Polish corridor in 1997. The Belarus and Polish sections were completed in September 1999. Construction of the Bovanenkovo–Ukhta section started in December 2008, at about the same time drilling of the first production well in the
Bovanenkovo gas field The Bovanenkovo gas field is a natural gas field located in the Yamalo-Nenets Autonomous Okrug. It was discovered in 1972 and developed by Gazprom. It began production in 2012 and produces natural gas and condensates. The total proven reserves o ...
started. The pipeline reached its rated capacity of about of natural gas in 2006, after completion of all compressor stations. The total cost of building the pipeline has been estimated at $36 billion.


Polish gas price reviews

In 2012, a 10% reduction in the gas price for the Polish state-controlled oil and gas company PGNiG was agreed. In 2020, the Stockholm Arbitration Tribunal ruled that PGNiG’s long-term contract gas price with Gazprom, linked to an index of oil and gas prices, should be changed to approximate the Western European gas market price, backdated to 1 November 2014 when PGNiG requested a price review under the contract. Gazprom had to refund about $1.5 billion to PGNiG. The 1996 contract is for up to of gas until it expires in 2022, with a minimum amount of . During the
2021 global energy crisis 1 (one, unit, unity) is a number, numeral, and glyph. It is the first and smallest positive integer of the infinite sequence of natural numbers. This fundamental property has led to its unique uses in other fields, ranging from science to s ...
, PGNiG made a further price review request on 28 October 2021. PGNiG stated the recent extraordinary increases in natural gas prices "provides a basis for renegotiating the price terms on which we purchase gas under the Yamal Contract."


Polish pipeline section

In 2019, as part of Poland's plans to become energy independent from Russia, Piotr Wozniak, president of PGNiG, stated "The strategy of the company is just to forget about Eastern suppliers and especially about
Gazprom PJSC Gazprom ( rus, Газпром, , ɡɐsˈprom) is a Russian State-owned enterprise, majority state-owned multinational Energy industry, energy corporation headquartered in the Lakhta Center in Saint Petersburg. The Gazprom name is a contract ...
." PGNiG intends to diversify supplies primarily through a switch to
liquefied natural gas Liquefied natural gas (LNG) is natural gas (predominantly methane, CH4, with some mixture of ethane, C2H6) that has been cooled to liquid form for ease and safety of non-pressurized storage or transport. It takes up about 1/600th the volume o ...
(LNG) supplies imported from Qatar, the U.S. and Norway, and possibly a pipeline to Norway, greatly reducing the significance of supply through the Yamal pipeline. Transit on the Polish section of the pipeline onto western Europe was until 18 May 2020 enabled by a long-term transit agreement with
Gazprom PJSC Gazprom ( rus, Газпром, , ɡɐsˈprom) is a Russian State-owned enterprise, majority state-owned multinational Energy industry, energy corporation headquartered in the Lakhta Center in Saint Petersburg. The Gazprom name is a contract ...
. From 2020 to 2021, in accord with the EU Capacity Allocation Mechanisms NC regulation 2017/459, transit was offered to all parties on a yearly, quarterly, monthly, daily and intraday basis. In July 2021 Gazprom decided not to book an annual contract, creating concern that Gazprom no longer planned to use the pipeline all year as a route to transport gas to Europe. The pipeline was closed by the Polish government in 2022 following a payment dispute with Russia after the
Russian invasion of Ukraine On 24 February 2022, , starting the largest and deadliest war in Europe since World War II, in a major escalation of the Russo-Ukrainian War, conflict between the two countries which began in 2014. The fighting has caused hundreds of thou ...
and broad
international sanctions International sanctions are political and economic decisions that are part of diplomatic efforts by countries, multilateral or regional organizations against states or organizations either to protect national security interests, or to protect i ...
.
Shares In financial markets, a share (sometimes referred to as stock or equity) is a unit of equity ownership in the capital stock of a corporation. It can refer to units of mutual funds, limited partnerships, and real estate investment trusts. Sha ...
in the pipeline were frozen and could not be traded by Russia. In 2023 Poland took over the 48% Gazprom shares.


Disruptions

There have been at least seven interruptions, either complete suspensions or restrictions, in gas supply to Poland in the 18 years prior to April 2022. Depending on the type of incident, these interruptions that lasted from a few days to half a year. On 6 November 2021, ''Reuters'' reported that gas delivery through the Polish section had been halted, or the flow has been reversed. According PGNiG, everything is fine from their point of view, as Poland received gas from both the east and the west, according to domestic demand and gas pricing. Russia has been accused of intentionally reducing gas flows to Europe for political purposes, but generally high Russian domestic requirements led to this situation. On 9 November 2021, westward flows into Germany were re-established, and the
Kremlin The Moscow Kremlin (also the Kremlin) is a fortified complex in Moscow, Russia. Located in the centre of the country's capital city, the Moscow Kremlin (fortification), Kremlin comprises five palaces, four cathedrals, and the enclosing Mosco ...
pledged again to increase the delivery of natural gas to Europe. On 26 April 2022, PGNiG's press office informed that "Gazprom has formally applied to PGNiG with a letter on legal changes in the Russian Federation regarding the change in the rules of payment for gas supplies". The Baltic Pipe between Norway and Poland will have the capacity to replace the roughly 60% of Polish gas imports coming from Russia via the Yamal pipeline, and At the end of 2019, the management of PGNiG decided not to extend the Yamal contract that was due to expire at the end of 2022. On 26 April 2022,
Gazprom PJSC Gazprom ( rus, Газпром, , ɡɐsˈprom) is a Russian State-owned enterprise, majority state-owned multinational Energy industry, energy corporation headquartered in the Lakhta Center in Saint Petersburg. The Gazprom name is a contract ...
announced it would stop delivering natural gas to
Poland Poland, officially the Republic of Poland, is a country in Central Europe. It extends from the Baltic Sea in the north to the Sudetes and Carpathian Mountains in the south, bordered by Lithuania and Russia to the northeast, Belarus and Ukrai ...
via the Yamal–Europe pipeline, as well as to
Bulgaria Bulgaria, officially the Republic of Bulgaria, is a country in Southeast Europe. It is situated on the eastern portion of the Balkans directly south of the Danube river and west of the Black Sea. Bulgaria is bordered by Greece and Turkey t ...
, as both countries had rejected Russia's demand that payments for gas be made in
Russian ruble The ruble or rouble (; Currency symbol, symbol: ₽; ISO 4217, ISO code: RUB) is the currency of the Russia, Russian Federation. Banknotes and coins are issued by the Central Bank of Russia, which is Russia's central bank, monetary authority ind ...
s - a demand allegedly constituting breach of contract. Poland said it did not expect disruptions in supply due to its
natural gas storage Natural gas is a commodity that can be stored for an indefinite period of time in natural gas storage facilities for later consumption. Usage Gas storage is principally used to meet load variations. Gas is injected into storage during periods o ...
facilities being about 75% full (ensuring 40–180 days of supply), the Poland–Lithuania gas pipeline becoming operational in May that year, the Baltic Pipe natural gas pipeline between Poland and
Norway Norway, officially the Kingdom of Norway, is a Nordic countries, Nordic country located on the Scandinavian Peninsula in Northern Europe. The remote Arctic island of Jan Mayen and the archipelago of Svalbard also form part of the Kingdom of ...
becoming operational in October. Poland can also import gas via the
Świnoujście LNG terminal The Świnoujście LNG terminal (also referred as Terminal LNG in Świnoujście, Polskie LNG Baltic LNG, or gazoport) is a liquefied natural gas (LNG) import terminal at Świnoujście, in the extreme north-west of Poland near the Polish-German bo ...
. , eastward flow of gas from Germany to Poland through the Yamal–Europe pipeline is stable.


Route

The section west of the Torzhok gas hub includes about in Russia, in
Belarus Belarus, officially the Republic of Belarus, is a landlocked country in Eastern Europe. It is bordered by Russia to the east and northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Belarus spans an a ...
and in
Poland Poland, officially the Republic of Poland, is a country in Central Europe. It extends from the Baltic Sea in the north to the Sudetes and Carpathian Mountains in the south, bordered by Lithuania and Russia to the northeast, Belarus and Ukrai ...
. It is fed from the north-east by the Bovanenkovo–Ukhta, Ukhta–Torzhok and SRTO–Torzhok sections, which are all considered to be part of the Yamal–Europe pipeline. The German gas system is connected to the Yamal–Europe pipeline through the JAGAL pipeline. The Bovanenkovo–Ukhta section involved a undersea pipeline under
Baydaratskaya Bay Baydaratskaya Bay or Baydarata Bay () is a bay in Russia, located in the southern part of the Kara Sea between the coastline of the Polar Urals, the northern end of the Ural Mountains, and Yamal Peninsula. The length of the bay is approx. 180 ...
in the southern
Kara Sea The Kara Sea is a marginal sea, separated from the Barents Sea to the west by the Kara Strait and Novaya Zemlya, and from the Laptev Sea to the east by the Severnaya Zemlya archipelago. Ultimately the Kara, Barents and Laptev Seas are all ...
. The western section of the pipeline was initially supplied by the slowly depleting gas fields in the Nadym Pur Taz District of the
Tyumen Oblast Tyumen Oblast () is a federal subjects of Russia, federal subject (an oblast) of Russia. It is located in Western Siberia, and is administratively part of the Ural Federal District. The oblast has administrative jurisdiction over two autonomous ...
and not from the
Yamal project Yamal project, also referred to as Yamal megaproject, is a long-term plan to exploit and bring to the markets the vast natural gas reserves in the Yamal Peninsula, Russia. Administratively, the project is located in the Yamalo-Nenets Autonomous Ok ...
. The SRTO–Torzhok branch section starts at
Novy Urengoy Novy Urengoy (, lit: “New Urengoy”) is the most populous city in Yamalo-Nenets Autonomous Okrug, Russia. In 2021, it had a population of 107,251. Novy Urengoy is located around 450km away from Salekhard, the capital of the Autonomous Okrug. ...
, near the developing Urengoyskoye gas field within the
Urengoy gas field The Urengoy gas field in the northern West Siberia Basin is the world's second largest natural gas field after South Pars / North Dome Gas-Condensate field. It lies in the Yamalo-Nenets Autonomous Okrug, Tyumen Oblast, Russia, just south of the ...
complex. As of 2020, the Yamal gas fields produced over 20% of Russia's gas, which was expected, as of 2021, to increase to 40% by 2030.


Technical features

The capacity of the pipeline is of natural gas per annum. The diameter of the pipeline is . The pressure in the pipeline is provided by 14 compressor stations.


Ownership

The Russian section of the pipeline is owned and operated by
Gazprom PJSC Gazprom ( rus, Газпром, , ɡɐsˈprom) is a Russian State-owned enterprise, majority state-owned multinational Energy industry, energy corporation headquartered in the Lakhta Center in Saint Petersburg. The Gazprom name is a contract ...
. The Belarusian section is owned by Gazprom and operated by
Gazprom Transgaz Belarus Gazprom Transgaz Belarus (former name: Beltransgaz) is a natural gas infrastructure and transportation company of Belarus. It operates the main natural gas transit pipelines through Belarus— Northern Lights and Yamal–Europe. Beltransgaz was f ...
. The Polish section is owned and operated by EuRoPol Gaz S.A., a joint venture of the Polish PGNiG, Russian Gazprom, initially with a 4% holding by Polish Gas-Trading S.A. It was agreed in 2009 that this small holding would be sold, leaving both partners with 50%. In 2022 the Gazprom shares in EuRoPol Gaz S.A were put under management after sanctions froze the shares and in October 2023 the shares were transferred to Polish oil concern Orlen, which became the 100% owner of the Polish portion of the pipe. Poland sets compensation for the 684-km Polish section of the Yamal pipeline at 787 million zloty ($183m).


Second pipeline

In 2005, there were plans to build a second leg of the pipeline via Belarus. On 1 November 2007, the Russian minister of industry and energy
Viktor Khristenko Viktor Borisovich Khristenko (; born 28 August 1957) is a Russian politician who was chairman of the board of the Eurasian Economic Commission from 1 February 2012 to 1 February 2016. He was First Deputy Prime Minister of Russia from 31 May 199 ...
said these plans had been dropped, because construction of the
Nord Stream 1 Nord Stream (Denglisch, German–English mixed expression for "North Stream 1"; ) is a pair of offshore natural gas pipeline transport, pipelines in Europe that run under the Baltic Sea from Russia to Germany. It consists of the Nord Stream 1 ( ...
pipeline was preferred.


See also

* - oil pipeline that also flows through Belarus and Poland * * * - 1980s gas pipeline to the south of Yamal–Europe pipeline


References


External links


EuRoPol Gaz website

Transmissions at IP Sudzha, 2018-2022
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