DRUZHBA & YAMAL EUROPE

PIPELINES
LECTURER: F.PROEDROU

PRESENTED BY: A.BIELOKON

TABLE OF
CONTENTS

Brief presentation and history of Druzhba and Yamal-Europe

pipeline

Routes and the map

Conflicts associated with gas transit and distribution

Other conflicts and countries affected by gas transit

Debate: Economy or Politics ?

Russia-EU

BRIEF PRESENTATION AND HISTORY OF

DRUZHBA PIPELINE
Druzhba Pipeline - the largest and most prominent oil pipeline in the world,
the Druzhba Pipeline remains a leading service for the transportation of oil
to European countries, being in operation since 1962.
The Council for Mutual Economic Assistance (Comecon) held its 10th session
in Prague on 18 December 1958, and there an agreement to construct the
worlds largest oil pipeline was signed.
Pipeline was built to meet the oil requirements of Bulgaria, Hungary, the
former German Democratic Republic (GDR East Germany), Poland and
Czechoslovakia.

Oil from the pipeline first reached Czechoslovakia and Poland at the
beginning of 1962, and Hungary and the GDR in 1963.

BRIEF PRESENTATION AND HISTORY OF

YAMAL - EUROPE
The planning of the YamalEurope pipeline started in 1992

The transnational Yamal-Europe gas pipeline passes through four countries,

Russia, Belarus, Poland and Germany. This export corridor increased the
flexibility and reliability of Russian gas supplies to Western Europe
In 1994, Wingas, the joint venture of Gazprom and Wintershall, a subsidiary of
BASF, started building the German section of the pipeline
Construction began in 1994, and with commissioning of the last compressor
station in 2006 Yamal-Europe has reached its design capacity of 32.9 billion
cubic meters per year.

The specific objective in this case is to meet the market demand in Germany
and in Great Britain through the Interconnector.

Map of Druzhba and Yamal-Europe

pipelines

ROUTE
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YAMAL-EUROPE PIPELIN
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COMPANIES INVOLVED
IN
OPERATION

The Druzhba line begins in South

Eastern Russia where it collects oil from
Western Siberia, the Urals and, to a
smaller extent, the Caspian Sea.

The line originates from the Torzhok gas

transportation unit in the Tver region of
Russia, where it takes gas from the
Northern Tyumen Region.

The line runs to Mozyr in Belarus where

it splits into two branches, the Northern
and Southern Druzhba lines.

In Belarus there are 575 km of

pipelines. Gazprom is the sole owner of
the Belarusian section of gas pipeline.

The Northern Druzhba line runs from

Mozyr to Adamowo in Poland and
continues across Poland to
Heinersdorf in Germany where it
splits into branches running to the
Schwedt and Leuna refineries,
respectively.

The Polish section is 683 km long . The

Polish section of the pipeline is owned
by EuRoPol Gas (a joint venture
between Gazprom and the Polish
company PGNiG).

The Southern Druzhba line runs from

Mozyr to Brody in Ukraine, and then
on to Uzhgorod close to the border of
Ukraine with both the Slovak Republic
and Hungary. At Uzhgorod the
Southern Druzhba splits into two
lines, Druzhba-1, which feeds the
Slovak Republic and the Czech
Republic, and Druzhba-2 which feeds
Hungary.

The final western point of the pipeline is

the Malnow compressor station near
Frankfurt an der Oder near the GermanPolish border, where the pipeline
connects to the JAGAL-Nord gas
transportation system.The owner of the
German part of the gas pipeline is
WINGAS Transport.

DRUZHBA PIPELINE AND CONFLICTS

ASSOCIATED WITH PIPELINE GAS
TRANSIT

A serious dispute began over the price of natural gas supplied and the cost of
transit .
2005-2006 2006- Russia cut off all gas supplies passing through Ukrainian territory.

October 2007 when new disputes began over Ukrainian gas debts. This led to
reduction of gas supplies in March 2008. During the last months of 2008, relations
once again became tense when Ukraine and Russia could not agree on the debts
2007-2008 owed by Ukraine.

2009

October 2009, another disagreement arose about the amount of gas Ukraine would
import from Russia in 2010. Ukraine intended to import less gas in 2010 as a result
of reduced industry needs because of its economic recession

There were several theories as to alleged political motives behind the gas disputes,
including Russia exerting pressure on Ukrainian politicians or attempting to subvert
EU and NATO expansions to include Ukraine.Others suggested that Ukraine's
Political
actions were being orchestrated by the United States.
motives

YAMAL PIPELINE AND CONFLICTS

ASSOCIATED WITH PIPELINE GAS
TRANSIT

Political context between Russia and Belarus.

Gazprom sought to establish a joint venture to own and
operate the Belarusian transit network.

Belarus started to siphon gas meant for transit to Europe

from the Yamal-Europe pipeline, without Gazprom's
approval. As a result, Gazprom completely cut off
supplies to the Belarusian network.

2007- Price issues between Russia and Belarus.

Belarus sold to Gazprom 50% of its national gas supplier
Beltransgaz for the maximal price of $2.5 billion.

OTHER COUNTRIES INVOLVED IN

THE CONFLICT
Lithuania
Russia cited technical reasons for stopping oil deliveries to Lithuania,
Lithuania claims that the oil supply was stopped because Lithuania sold the
Maeiki refinery to Polish company PKN Orlen and not to Russia.

Turkmenistan
Yet a long-term concern of Moscow is that a new Turkmen regime may seek
to diversify its energy routes away from Russia. Iran and the United States,
for example, have sought to increase energy ties with Turkmenistan.

Georgia
During its ongoing energy price dispute with Tbilisi, Gazprom threatened to cut off supplies
before finally reaching a settlement in December 2006: a doubling of the price of gas to $235
per 1,000 cubic meters.
The dispute was the latest in a series of squabbles between Moscow and Tbilisi, including the
arrests of four Russians in October accused of being spies and an earlier Russian boycott of
Georgian spirits.

DEBATE: ECONOMY OR POLITICS ?

Russias attempts to raise gas prices in
Ukraine were a political gesture, aimed at
Kievs pro-Western government

Russia looked to raise the price of gas in Belarus,

traditionally a Russian friend, some wondered whether its
motivations were more economic.

Russias energy giant, Gazprom, is at the heart of a new

cold war pitting the Kremlin against Washington. European
governments have repeatedly received and largely
ignored in recent years. Mr. Putins regime plainly intends
to use Europes dependence on Russian energy to advance
an imperialist and anti-Western agenda.

RUSSIA EUROPEAN UNION

Russias price
spat with
Ukraine when
gas supplies to
some European
countries were
temporarily
disrupted.

The
European
Union has
made
proposals to
diversify
energy
supply. One
of them is
the Nabucco
pipeline.

Russia has a
significant role
in the
European
energy sector
as the largest
exporter of oil
and natural
gas to the EU

Moscow ratified
the fifteen-yearold Energy
Charter Treaty
(ECT) with the
European Union,
would give
foreign
European
investors
greater access
to Russias
pipelines and oil
and gas
deposits.

THANKS FOR ATTENTION