Italian, Russian energy companies solidify plans for underwater gas pipeline
On Thursday, Italian energy company Eni and Russia's state-owned Gazprom signed an agreement to construct the so-called South Stream natural gas pipeline connecting Russia to Europe via the Black Sea.
The contract establishes a new company to plan the project, which is estimated at $14.8 billion and could deliver an annual 30 billion cubic meters of Russian gas to Europe. Gazprom and Italy will each own half of the company, according to The New York Times.
Russian President Vladimir Putin and Italian Prime Minister Romano Prodi lent their support to the project during a ceremony at the Kremlin.
"The South Stream project has a strategic significance to ensure energy security for Europe," said Putin.
The project is seen by some as competition for the Nabucco pipeline, however, which strives to reduce European dependence on Russian gas, according to The Moscow Times.
The Nabucco pipeline is intended to transport natural gas from Central Asia to Europe via Azerbaijan.
Speaking on Thursday, Hungarian Minister of Economy and Transport Janos Koka said Hungary would like to see Azerbaijani gas reach Europe as soon as possible, reported TASS.
Hungary is one of four European countries participating in the Nabucco project, along with Austria, Bulgaria and Romania.
Turkmenistan eager to step up construction of pipeline
Turkmenistan wants to begin construction earlier than planned on the Caspian Littoral Gas Pipeline, according to Turkmen President Gurbanguly Berdymukhamedov.
The Caspian pipeline is designed to wind along the Turkmen and Kazakh coasts, eventually connecting to the Central Asia-Center pipeline network. It should boost Turkmenistan's capacity to export gas to Russia -- already the largest importer of Turkmen gas -- by 20 million cubic meters.
Construction was originally scheduled to begin in late 2008, but according to Berdymukhamedov, "Turkmenistan can start the implementation of the project earlier than that," reported TASS.
Although the final agreement between Russia, Turkmenistan and Kazakhstan experienced delays, it should be signed soon, confirmed Russian Prime Minister Viktor Zubkov.
Some are skeptical that Turkmenistan will be able to meet all of its gas obligations, however, according to the Russian Press Digest.
Existing Turkmen plans include increasing the capacity of the Central Asia-Center pipeline, supplying 30 billion cubic meters of gas to China and between 7 billion and 14 billion cubic meters to Iran annually, as well as linking the trans-Caspian pipeline to the Nabucco pipeline.
West Africa Gas pipeline to begin operations in December
Nigerian natural gas will begin flowing through the West Africa Gas Pipeline in December, according to WAGPCo General Manager Aderemi Oladapo.
The pipeline, which suffered delays due to a burst in Cotonou, Benin, cost about $600 million to build and runs 620 kilometers from Nigeria to Benin, Togo and Ghana. Gas will travel through the pipeline for an estimated four days before reaching Ghana, with flows expected to commence on Dec. 23, reported the Vanguard.
According to the Word Bank, Benin, Togo and Ghana could save close to $500 million over 20 years by substituting WAGP gas for other, more expensive forms of energy. And Chevron, which signed a 20-year agreement to provide natural gas via the pipeline to a power plant in Tema, Ghana, claims that 10,000 to 20,000 jobs will be created regionally by the WAGP.
Despite talk of extending the pipeline as far as Senegal, instability in countries such as Cote d'Ivoire, Liberia and Sierra Leone will likely impede such plans in the near future.
TransCanada hoping for new Alberta pipeline
Nova Gas Transmission, a subsidiary of TransCanada Corp., requested permission Wednesday from the Alberta Energy and Utilities Board to construct a 300-kilometer natural gas pipeline in Alberta.
The proposal detailed a 300-kilometer, 42-inch corridor that, if approved, could begin taking shape in late 2008. Also included in the proposal were plans to "install 26 megawatts of additional compression and associated facilities on the northern section of the Alberta System," according to a statement on the company Web site.
The total cost of the proposal is estimated at $983 million.
"The North Central Corridor is the most cost-effective facility to accommodate evolving gas supply and market dynamics both within and outside Alberta," said Hal Kvisle, TransCanada president and chief executive officer.
Construction will utilize existing infrastructure where possible to minimize environmental damage and is expected to begin in 2008. Service is expected in April 2010.
