Future of the Market for Equipment and Materials Used in the Construction of Trunk and Non-Trunk Pipelines in Russia

Development of new fields and entry into new petroleum provinces are the main methods for maintaining and growing oil production in Russia. Implementation of future projects will require laying new pipelines and building oil treatment units (OTU), central gas treatment facilities (CGTF), booster stations (BS), pumping stations (PS) and other field processing facilities. This will drive demand for relevant equipment on the part of oil and gas producers or their engineering and oilfield service contractors.

It will be important for equipment manufacturers to predict the requirements of potential buyers during this period and forecast demand for certain types of equipment and evaluate its scope.

RPI’s latest report “Future of the Market for Equipment and Materials Used in the Construction of Trunk and Non-Trunk Pipelines in Russia” offers a tool that will enable petroleum companies to objectively evaluate potential demand until 2025 for certain sizes of pipes for trunk and non-trunk pipelines, OTU, CGTF, BS equipment, align their capabilities with market needs and possibly adjust their further operational strategies.
This study includes an overview of the major Russian oil and gas fields slated for development until 2025, analysis of major and medium-size production projects in terms of construction scopes for pipelines, OTU, CGTF, BS and their potential specifications, and estimate of overall demand for tubulars for trunk and non-trunk pipelines and pumps covering the study horizon.

The main sections of the report address the following issues:
• Overview of O&G sector’s key production and drilling projects
• Overview of the geographic and climatic environment in areas where pipelines are to be built
• Profiles of major production projects, including offshore projects
• Estimate of tubular demand for supply pipeline, including subsea pipelines until 2025
• Estimate of the Russian market demand for tubular for trunk and non-trunk line pipes for OTU, BS and CGTF as well as PS pumps
• An overview of companies that design pipelines

Pipeline project profiles include:
• Overview of a production project
• Its location
• An estimate of reserves and peak production
• The customer ordering the work and the timeframe for pipeline construction
• Investments in pipeline construction
• Pipeline specifications: capacity, length and diameter
• Probable amount of oilfield equipment required

Compared with similar products, this report is a broader and more comprehensive market study that can help customers to significantly reduce their potential costs of gathering and analyzing commercially available information about Russian companies’ future demand for oil and gas field equipment and tubing products.
The market growth forecast we present includes an analysis of field equipment and pipe demand broken down by individual projects and buyers to enable field equipment manufacturers to more accurately identify required equipment and pipe specifications.
Apart from manufacturers, the report may be of interest to service companies by helping them to take a more objective look at their own performance, and to better navigate the oil and gas field equipment and tubing product market.
Oilfield service providers and equipment and pipe manufacturers could use the information offered by the report to more accurately design and fine-tune their strategic plans, objectively assess their capabilities and develop operating performance improvement targets.
Finance companies could find this report useful for honing their insights on future investment opportunities in the trunk and non-trunkline construction sector and minimizing project risks.

1 Introduction

2 Key Conclusions

3 Major Production Projects

3.1. Bashneft

3.2. Gazprom

3.3. Gazprom Neft

3.4. LUKOIL

3.5. Novatek

3.6. Rosneft

3.7. RussNeft

3.8. Slavneft

3.9. Surgutneftegaz

3.10. Tatneft

4 Geography, natural environment and climate around future non-trunk pipeline construction sites

4.1. Khanty-Mansiysk Autonomous District

4.2. Yamal-Nenets Autonomous District, including the Yamal Peninsula

4.3. Volga-Urals Region

4.4. Timan-Pechora Petroleum Province

4.5. Eastern Siberia

5 Trunk pipeline construction projects

5.1. Profiles of trunk pipeline construction projects

5.1.1. Zapolyarye-Purpe oil pipeline (2nd and 3rd stage)

5.1.2. Kuyumba-Taishet oil pipeline

5.1.3. Offshoot of the Eastern Siberia – Pacific Ocean pipeline system – Komsomolsky refinery

5.1.4. Offshoot from 147th km of the Tikhoretsk – Novorossiisk-2 trunk oil pipeline to Afipsky refinery

5.1.5. Section – Penza bypass

5.1.6. Offshoot of the Eastern Siberia – Pacific Ocean pipeline system –Khabarovsk refinery

5.1.7. Expansion of the Caspian Pipeline Consortium-P pipeline 

5.2. Profiles of trunk oil product construction projects in 2013-2025

5.2.1. South project

5.2.2. North project

5.2.3. Offshoot from Yurgamysh line operation dispatcher station to Ufa – Petropavlovsk trunk oil product pipeline

5.2.4. Kstovo – Nagornaya oil product pipeline

5.2.5. Seaport Primorsk – Seaport Port Vysotsk oil products pipeline cross connection

5.2.6. Urengoi-Purpe

5.3. Profiles of trunk gas pipeline construction projects in 2013-2025

5.3.1. Bovanenkovo – Ukhta gas pipeline

5.3.2. Connecting gas pipeline to the Kamennomysskoye sea (offshore) gas field

5.3.3. Connecting gas pipeline to the Severo-Kamennomysskoye sea (offshore) gas field

5.3.4. Connecting gas pipeline to the Parusovaya group of fields and Taz Bay of the Kara Sea

5.3.5. Gas transport system from fields of the Ob and Taz bays of the Kara Sea

5.3.6. Expansion of the Unified Gas Supply System for delivery of gas to the 3rd and 4th lines of the Nord Stream offshore gas pipeline

5.3.7. Ukhta – Torzhok trunk gas pipeline. Third line (Yamal)

5.3.8. Ukhta – Cheboksary gas pipeline. First line

5.3.9. Altai gas pipeline

5.3.10. Yakutia – Khabarovsk – Vladivostok (Power of Siberia) gas pipeline

5.3.11. Murmansk – Volkhov section of gas pipeline in the Murmansk region

5.3.12. Gas pipeline offshoot to the city of Sol-Iletsk

5.3.13. Gas pipeline offshoot to power unit # 4 of Perm GRES CCGT-800

5.3.14. Gas pipeline offshoot to power unit # 12 of Verkhetagilskaya GRES CCGT-420

5.3.15. Gas pipeline offshoot to Ust-Luga gas distribution plant from Kokhtla-Yarve – Leningrad trunk gas pipeline

5.3.16. Gas pipeline cross connection between Belousovo – Leningrad trunk gas pipeline and Kokhtla-Yarve – Leningrad trunk gas pipeline

5.3.17. Gas pipeline offshoot to the city of Kharovsk, Kharovsk district of the Vologda region

5.3.18. Gas pipeline offshoot to the city of Ustyuzhna, with a branch to the village of Dubrovka, Babayevsky district, and the village of Danilovskoye, Ustyuzhensky district of the Vologda region

5.3.19. South Stream and Southern Corridor gas pipeline system

6. Supply pipeline construction projects

6.1. New major oil field project development profiles (peak production of one million tons per year or more) in KMAD in 2013-2025

6.1.1. Gavrikovskoye oil-and-gas field

6.1.2. V.I. Shpilman field (oil and gas)

6.1.3. Imilorskoye oil-and-gas field

6.1.4. Erginskoye oil field

6.2. Profiles of new medium-size oil field development projects (peak production from 0.5 -1 million tons per year) in KMAD and in the southern Tyumen region in 2013-2025

6.2.1. Kosukhinskoye oil-and-gas field

6.2.2. Protozanovskoye oil-and-gas field

6.2.3. Svobodnoye oil-and-gas field

6.3. Profiles of new major oil field development projects (peak production from one million tons per year or more) in YNAD in 2013-2025

6.3.1. Valyntoisky license block

6.3.2. Vostochno-Messoyakhskoye oil-gas-condensate field

6.3.3. Vostochno-Urengoisky license block

6.3.4. Zapadno-Messoyakhskoye oil-gas-condensate field

6.3.5. Pyakyakhinskoye oil-gas-condensate field

6.3.6. Russkoye gas-and-oil field

6.3.7. Tazovskoye oil field

6.4. Profiles of new medium-size oil field development projects (peak production from 0.5 -1 million tons per year) in YNAD in 2013-2025

6.4.1. Russko-Rechenskoye oil-gas-condensate field

6.4.2. Severo-Russkoye oil-gas-condensate field

6.4.3. Khadyryakhinskoye oil-gas-condensate field

6.4.4. Khalmerpayutinskoye oil-gas-condensate field

6.5. Non-trunk gas pipeline construction projects in YNAD

6.5.1. Khalmerpayutinskoye field – Pyakyakhinskoye field (interfield pipeline)

6.3.3. Vostochno-Urengoisky license block

6.3.5. Pyakyakhinskoye oil-gas-condensate field

6.3.6. Russkoye gas-and-oil field

6.3.7. Tazovskoye oil field

6.4. Profiles of new medium-size oil field development projects (peak production from 0.5 -1 million tons per year) in YNAD in 2013-2025

6.4.1. Russko-Rechenskoye oil-gas-condensate field

6.4.2. Severo-Russkoye oil-gas-condensate field

6.4.3. Khadyryakhinskoye oil-gas-condensate field

6.4.4. Khalmerpayutinskoye oil-gas-condensate field

6.5. Non-trunk gas pipeline construction projects in YNAD

6.5.1. Khalmerpayutinskoye field – Pyakyakhinskoye field (interfield pipeline)

6.5.2. Pyakyakhinskoye field – Yuzhno-Messoyakhskoye field (interfield pipeline)

6.5.3. Yuzhno-Messoyakhskoye gas condensate field – Nakhodkinskoye field (interfield pipeline)

6.5.4. Termokarstovoye gas condensate field – UGSS (supply gas pipeline)

6.5.5. Yevo-Yakhinskoye gas condensate field – UGSS (supply gas pipeline)

6.5.6. Yaro-Yakhinskoye gas condensate field - UGSS (supply gas pipeline)

6.5.7. Kharampur group of fields (interfield pipeline)

6.5.8. Kynsko-Chaselskaya group of fields (interfield pipeline)

6.6. Profiles of new major oil field development projects (peak production from one million tons per year or more) on the Yamal Peninsula in 2013-2025

6.6.1. Kruzenshternskoye gas condensate field

6.6.2. Malyginskoye gas condensate field

6.6.3. Nazymskoye oil field

6.6.4. Novoportovskoye oil-gas-condensate field

6.6.5. Rostovtsevskoye oil-and-gas field

6.6.6. Severo-Tambeiskoye and Zapadno-Tambeiskoye gas condensate fields

6.6.7. Sredne-Yamalskoye oil-gas-condensate field

6.6.8. Tasiyskoye gas condensate field

6.6.9. Khambateiskoye gas condensate field

6.6.10. Yuzhno-Tambeiskoye gas condensate field

6.7. Profiles of new medium-size oil field development projects (peak production from 0.5 -1 million tons per year) on the Yamal Peninsula in 2013-2025

6.7.1. Kamennomysskoye-susha (onshore) oil-and-gas field

6.7.2. Malo-Yamalskoye gas condensate field

6.7.3. Neitinskoye oil-gas-condensate field

6.8. Non-trunk gas pipeline construction projects on the Yamal Peninsula

6.8.1. Malo-Yamalskoye field – CS Baydaratskaya, Bovanenkovo-Ukhta gas pipeline (UGSS)

6.9. Profiles of new major oil field development projects (peak production from one million tons per year or more) in the Volga-Urals region in 2013-2025

6.9.1. Lugovoye oil field

6.9.2. Tsarichanskoye oil field

6.10. Profiles of new medium-size oil field development projects (peak production from 0.5 -1 million tons per year) in the Volga-Urals region in 2013-2025

6.10.1. V.P. Sukharev oil field

6.11. Non-trunk gas pipeline construction projects in the Volga-Urals region

6.11.1. The Zagorsk oil field group – Zaykinsky GPP

6.12. Profiles of new major oil field development projects (peak production from one million tons per year or more) in the Timan-Pechora petroleum province in 2013-2025

6.12.1. Vostocho-Lambeishorskoye oil field

6.12.2. Labaganskoye oil-and-gas field (V.S. Shmergelskoye field)

6.12.3. Naulskoye oil-and-gas field

6.12.4. Nizhnechutinskoye oil field

6.12.5. Sovetskoye oil-and-gas field

6.12.6. R. Trebs and A. Titov fields (oil)

6.13. Profiles of new medium-size oil field development projects (peak production from 0.5 -1 million tons per year) in the Timan-Pechora petroleum province in 2013-2025

6.13.1. Nenetskoye oil field

6.14. Profiles of new major oil field development projects (peak production from one million tons per year or more) in Eastern Siberia province in 2013-2025

6.14.1. Baikitsky license block

6.14.2. Verkhne-Vilyuchanskoye oil-gas-condensate field

6.14.3. Kordinsky license block

6.14.4. Kuyumbinskoye oil field

6.14.5. N.N. Lisovsky field (oil and gas)

6.14.6. Lodochnoye oil-and-gas field

6.14.7. Podporozhny license block

6.14.8 Savostyanovskoye oil field

6.14.9. Sanarskoye oil-and-gas field

6.14.10. Suzunskoye oil field

6.14.11. Tagulskoye oil field

6.14.12. Tersko-Kamovsky license block

6.14.13. Tuklano-Svetlaninsky license block

6.14.14. Chambinskoye oil-and-gas field

6.14.15. Chayandinskoye oil-gas-condensate field (oil legs)

6.14.16. Yurubcheno-Tokhomskoye oil and gas condensate field

6.15.1. Abrakupchkinsky license block

6.15.2. Yerobinsky license block

6.16. Non-trunk gas pipeline construction projects in Eastern Siberia

6.16.1. Yurubcheno-Tokhomskoye oil-gas-condensate field – UGSS

6.16.2. Chikanskoye gas condensate field – Irkutsk-Angarsk-Sayansk

6.17. Profiles of new major oil field development projects (peak production from one million tons per year or more) on the Russian continental shelf in 2012-2020

6.17.1 Arkutun-Dagi oil-and-gas field (Sakhalin-1 project)

6.17.2. V. Filanovsky oil-and-gas field

6.17.3. Sarmatskoye gas condensate field

6.18. Non-trunk gas pipeline construction projects on the Russian continental shelf

6.18.1. Chayvo gas condensate field (Sakhalin-1 project) – existing platform (subsea)

6.18.2. V. Filanovsky oil and gas field - offshore (underwater)

6.18.3. Sarmatskoye gas condensate field – V. Filanovsky field riser block (underwater)

6.19. Summary review of new small-size oil field projects (with a peak production under 0.5 million tons per year) in 2013-2025

6.19.1. Total estimate of demand for pipes (total length by pipe size)

6.19.2. Total demand for process facilities (Oil Treatment Units, OPS)

7 Overall estimate of demand for pipes for oil pipelines in 2013-2025

7.1. Demand for pipes for trunk oil pipelines and petroleum product pipelines

7.2. Demand for pipes for non-trunk oil pipelines

8 Overall estimate of demand for pipes for gas pipelines in 2013-2025

8.1. Demand for pipes for gas trunk pipelines

8.2. Demand for pipes for non-trunk gas pipelines

9 Estimate of investments in construction of oil and gas pipelines in 2013-2025

9.1. Estimate of investments in construction of trunk pipelines

9.2. Estimate of investments in construction of non-trunk pipelines

10 Total demand for Oil Treatment Units, OPS and pumps for oil production facilities in 2013-2025

10.1. Estimate of demand for OPS, transfer stations and pumps for construction of trunk oil pipelines and petroleum product pipelines

10.2. Estimate of demand for OTU, OPS and pumps for construction of non-trunk oil pipelines

11 Total demand for central gas treatment facilities, booster stations and gas compressor units for gas production facilities in 2014-2025

11.1. Estimate of demand for GCU for construction of gas trunk pipelines

11.2. Estimate of demand for CGTUs, booster stations and GCUs for construction of non-trunk gas pipelines

12 Profiles of major holding companies engaged in design of trunk and non-trunk pipelines

12.1. Gazprom

12.1.1. OAO VNIPIgazdobycha

12.1.2. OOO Gazprom VNIIgaz

12.1.3. OAO Giprogaztsentr

12.1.4. OAO Giprospetsgaz

12.1.5. OOO TyumenNIPIgiprogaz

12.1.6. OAO YuzhNIIGiprogaz

12.1.7. OOO Peter Gas

12.2. Gazprom Neft

12.2.1. OOO Gazprom Neft NTTs

12.3. LUKOIL

12.3.1. OOO LUKOIL Engineering

12.3.2. OAO Giprokauchuk

12.4. NOVATEK

12.5. RMNTK Nefteotdacha (Zarubezhneft)

12.5.1. OAO Giprovostokneft

12.6. Rosneft

12.6.1. OOO OC Rosneft - NTTs

12.6.2. OOO RN-UfaNIPIneft

12.6.3. OOO SamaraNIPIneft

12.6.4. OAO TomskNIPIneft

12.6.5. OOO RN - KrasnoyarskNIPIneft

12.6.6. ZAO INNTs (Izhevsk Petroleum Research Center)

12.7. Stroitransgaz

12.7.1. OOO STG Engineering

12.8. Surgutneftegaz

12.8.1. NIPI SurgutNIPIneft OAO Surgutneftegaz

12.9. Tatneft

12.9.1. V.D. Shashin TatNIPIneft Institute, OAO Tatneft

13 Profiles of independent companies providing trunk and non-trunkline design services

13.1. ZAO NIPI EngGeo

13.2. ZAO Tyumenneftegazpropyekt

13.3. OAO Institute Neftegazproyekt

13.4. OOO LenNIIkhimmash

13.5. OOO Design Institute ROSSNEFTEGAZPROYEKT

13.6 ZAO Design Institute Nefteproyekt

13.7. OAO Giprogazoochistka

13.8. OOO NPO Engineering Systems

13.9. OAO Nizhnevartovsk NIPIneft

13.10. ZAO Firma Frikon

14 Foreign design companies operating in the Russian market

Figure 7-1. Forecast of Russian market demand for pipes for construction of trunk oil pipelines and petroleum product pipelines from 2014 to 2025, kilometers

Figure 7-2. Forecast of Russian market demand for pipes for construction of supply oil pipelines from 2014 to 2025, kilometers

Figure 8-1. Forecast of Russian market demand for pipes for construction of gas trunk pipelines from 2014 to 2025, kilometers

Figure 8-2. Forecast of Russian market demand for pipes for construction of non-trunk supply gas pipelines from 2014 to 2025, kilometers

Figure 9-1. Relative shares of gas trunk pipelines, oil pipelines and petroleum product pipelines in total investments in construction of trunk pipeline facilities for export of hydrocarbons in Russia between 2014 and 2025, billion rubles, %

Figure 9-2. Forecast of investments in construction of trunk pipelines in Russia from 2014 to 2025, billion rubles

Figure 9-3. Forecast of investments in construction of non-trunk oil and gas pipelines in Russia from 2014 to 2025, billion rubles

Figure 10-1. Forecast of Russian market demand for OPS and transfer stations for new trunk oil pipelines and petroleum product pipelines from 2014 to 2025, number of units

Figure 10-2. Forecast of Russian market demand for pumps for new trunk oil pipelines and petroleum product pipelines from 2014 to 2025, number of units

Figure 10-3. Forecast of Russian market demand for oil treatment units from 2014 to 2025, number of units

Figure 10-4. Forecast of Russian market demand for new OPS from 2014 to 2025, number of units

Figure 10-5. Forecast of Russian market demand for pumps for new OPS from 2014 to 2025, number of units

Figure 11-1. Forecast of the number of gas trunk pipeline compressor stations to be built from 2014 to 2025, number of units

Figure 11-2. Forecast of the number of gas trunk pipeline GCUs to be built from 2014 to 2025, number of units

Figure 11-3. Forecast of the number of CGTUs to be built from 2014 to 2025, number of units

Figure 11-4. Forecast of the number of GCUs to be purchased from 2014 to 2025, number of units

Figure 11-5. Market size and shares held by major players of the GCU market, Russian Federation, 2009-2012, billions of rubles

Figure 11-6. Market size and shares held by major players of the GCU market, Russian Federation, 2009-2012, % of billions of rubles

Table 7-1. Forecast of Russian market demand for pipes for construction of trunk oil pipelines and petroleum product pipelines from 2014 to 2025, kilometers

Table 7-2. Forecast of Russian market demand for pipes for construction of supply oil pipelines from 2014 to 2025, kilometers

Table 8-1. Forecast of Russian market demand for pipes for construction of gas trunk pipelines from 2014 to 2025, kilometers

Table 8-2. Forecast of Russian market demand for pipes for construction of non-trunk supply gas pipelines from 2014 to 2025, kilometers

Map 5-1. CPC oil pipeline expansion project

Map 5-2. Bovanenkovo – Ukhta gas pipeline

Map 5-3. Kamennomysskoye offshore gas field connection schematic

Map 5-4. Connection schematic for the Parusovaya group of fields and fields in the Taz Bay of the Kara Sea

Map 5-5. Ukhta - Torzhok gas pipeline. Leg III (Yamal)

Map 5-6. Altai gas pipeline route

Map 5-7. Power of Siberia gas pipeline route

Map 5-8. The Murmansk - Volkhov gas pipeline

Map 5-9. Southern Corridor gas pipeline construction stages

Map 5-10. South Stream gas pipeline construction project