ENTSOG TYNDP 2017 - Main Report

3.3.1 PIPELINE IMPORTS

Pipeline imports represent the main way to import gas into Europe. Considering the reasonable distance between many producing countries and the European consumers, pipelines represent an economical way to import gas.

3.3.1.1 Russia

The Russian Federation is currently the main gas supplier of the EU, providing 140 bcm (1,541TWh) in 2015, meaning 32% of EU supply share. It is expected to remain a major import source over the whole time horizon of this Report. The future production of gas will depend on investments in the upstream sector and increased competition for Russian supply from other export destinations such as China. Reserves Russia has the second largest proven gas reserves in the world, behind Iran, with 32,271bcm at the end of 2015  1) . In the past decade the proved gas reserves of Russia slightly increased (+14% between 2000 and 2015). According to Gazprom most of the production and reserves are located in the Ural Federal District, with significant reserves also in the continental shelf.

Production In 2015, Russia was the second largest natural gas producer of the world behind the United States with 573bcma.

600 bcma

%

Export/Production

80

60

400

40

200

20

0

0

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

Production

Demand

Export / Production

Figure 3.16: Natural gas production and demand of Russia (Source: BP statistical review 2016)

In the period 2005–2015 the natural gas production of Russia was on average 585bcma. There is one significant outlier in 2009 with a decrease that could be linked to the economic down-turn and the Ukraine transit disruption. Contrary to Norway, Russia has its own domestic demand that can influence its export poten- tial. This internal demand of Russia remained stable around 400bcma.

 1) BP statistical review of world energy 2016

Ten-Year Network Development Plan 2017 Main Report | 107