New Russian pipelines will impact energy trade flows into Asia and Europe

The report states that Europe, the Middle East and Africa (EMEA), which includes Russia and most of the former Soviet Union countries except Turkmenistan, Kazakhstan and Uzbekistan, will witness the largest addition of oil and gas pipelines globally between 2014 and 2018.

With 58,982 km of planned pipeline length additions, the EMEA region will be the single largest contributor to the global total of 145,003 km, accounting for 41 per cent during the forecast period.

Russia’s key major projects include the Trans-Korean gas pipeline and the Yakutia-Khabarovsk-Vladivostok gas pipeline, both 3,199 km, and the 2,657 km Altai Gas system into Xinyuan, China.

As a result of the recently announced Russia-China natural gas “÷mega-deal’, new natural gas pipeline systems will be built, linking Russia’s Siberian production fields to China’s industrial centres, with initial natural gas deliveries scheduled to commence in 2018.

GlobalData Managing Analyst Carmine Rositano,said “European countries are now seeking to avoid over-dependence on Russian gas supplies. This has triggered plans for several new pipeline projects in the EMEA region, with the aim of providing access to natural gas from the Caspian Sea and Central Asia to the key European consumers of gas. One such project is the Trans Adriatic Pipeline, which aims to bring natural gas from Azerbaijan to Europe.”

More natural gas pipelines than any other type will be built in EMEA by 2018, accounting for approximately 82 per cent of the region’s additions, says GlobalData. Planned projects for the transportation of crude oil, refined products and Natural Gas Liquids will account for almost 13 per cent, 4 per cent and 1 per cent of all planned length additions in the region, respectively.

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