Abstract
Introduction
- Russia ended 2005 with its seventh straight year of growth, averaging 6.4% annually since the financial crisis of 1998. This year, 2006 is a landmark year
- This report surveys six vital industries and markets in Russia; Oil, Gas, Coal, Electricity, Nuclear and District Heating
- Russia has formidable energy assets; it owns the largest reserves of natural gas in the world, it is the second largest exporter of oil and the sixth largest producer of coal. It also has an enormous but decrepit district heating network and he fourth largest electricity system
- The energy markets have taken erratic steps from centrally planned monoliths to market-orientated industries
- On 1st September 2006 the wholesale electricity market was opened to competition
Key Findings
- The Oil and Coal markets have been restructured and the Electricity market is now being unbundled and opened , with completion by 2008
- The most powerful market, Gas is almost entirely state controlled
- Increasingly it is being used as a political weapon for foreign policy
- The huge District Heating industry is facing crisis, with a 35% loss of custom, as large industrial users establish dedicated CHP plants
- The status of market liberalisation in each sector is reviewed
- The Russian energy sector is in dire need of modernisation and investment
Reasons to buy
- The deterioration due to lack of investment over many years is opening the doors to opportunities for investors in Russian energy
- With a multitude of acquisition targets for energy investors
- And large markets for new equipment and technology to repair and modernise the infrastructure
Table of Contents
1. Executive Summary
- Oil Sector
- Gas Sector
- Electricity Sector
- Coal Sector
- Nuclear power
- District Heating
2. Economic Overview
- Background
- The Economy in 2006
3. Oil
- Reserves
- Oil Transportation System
- The Early Years of Oil Transportation in Russia
- Oil Transportation in 2006
- Condition of the System
- Export
- Structure of the Oil Industry
- Proposed New Oil Exports Pipelines
- Change in Control
- Privatisation in 1992
- Foreign Involvement in Russian Oil Companies
- The VICs in 2006
- LUKOIL
- YUKOS (no longer in existence)
- Sibneft (owned by Gazprom)
- Slavneft
- Rosneft
- Surgutneftegaz
- TNK BP
- Sidanco (Siberian Oil Co)
- Tatneft
- Bashneft
4. Gas
- Structure of the gas industry
- Russia and the CIS
- Armenia
- Azerbaijan
- Belarus
- Georgia
- Kazakhstan
- Kyrgyzstan
- Moldova
- Tajikistan
- Turkmenistan
- Ukraine
- Uzbekistan
- Future output and consumption
- Independent gas companies
- Independent gas producers
- Transportation, Unified Gas Transportation System (UGS)
- Access to UGS, Transmission Tariffs
- Export Pipelines
- Blue Stream
- North Trans-Gas
- Kovkotya
- Yamal-Europe
- Exports
- Itera, independent exporter
- Prices
- Future prospects for Russian gas
- Pricing
- Price setting
- Investment Requirement
- Distribution
- Gasification Programme
- CNG
5. Electricity
- Regulation and Tariffs
- Capital Investment
- Restructuring of the Russian ESI
- Reform Timetable
- The Leading Major Energos
- OAO Mosenergo
- Irkutskenergo
- Tyumenergo
- Transmission
- The Electricity Supply Industry after Restructuring in 2009
- Liberalisation of the wholesale market
- Asset Restructuring
- Composition of the WGCs
- Regulator
- Physical Characteristics of the ESI
- Generating capacity and generation
- Power Plants
- Nuclear generation
- Capacity Forecast
- Transmission and Distribution, Physical Characteristics
- Distribution
- Interconnections
- Transmission and Distribution, Monopoly Regulation and Investment
6. Coal
- Coal Reserves
- Geographical Distribution of Coal Reserves and Mines in Russia
- Coal Quality
- Coal Producers
- Consumption
- Exports
- Transport
- Ports
- Environmental Impact
- Outlook for Coal
7. Nuclear
- Structure of the Nuclear Energy Sector in Russia
- Production
- Design and safety
- The International Nuclear Event Scale (INES)
8. District Heating
- Modernisation
- The Russian Heat Balance
- Technical Factors
- Transmission and Distribution of Heat
- Modernisation
- Pricing
Tables
- Table 1: The VICs in 2006
- Table 2: Gas Statistics
- Table 3: Principal Gas Companies
- Table 4: Regulated Wholesale process for electricity, 1996-2002
- Table 5: Electricity Utilities of Russia 2005
- Table 6: Electricity statistics of the Electricity Supply System, excluding isolated and captive generators, 1995-2004
- Table 7: Regional generation by energy type, %
- Table 8: Major power plants in Russia
- Table 9: Nuclear plants in Russia
- Table 10: Power Reactors under construction
- Table 11: Power Reactors Planned or On Order
- Table 12: Forecast of future capacity by fuel, 2005, 2010, 2015, 2020
- Table 13: Major Producers in Russia
- Table 14: Nuclear Power Reactors 2005-06 and Uranium Requirements (September 2006)
- Table 15: Nuclear power plants in Russia operational in 2006
- Table 16: Detailed criteria defining the levels of the International Nuclear Event Scale (INES)
- Table 17: Russian Heat Balance 2000-2001
Figures
- Figure 1: Oil Production and consumption of oil in Russia, 1985 to 2005
- Figure 2: Location of oil reserves in Russia
- Figure 3: Existing and planned gas pipelines to Europe
- Figure 4: Main Oil Export Infrastructure
- Figure 5: Druzhba and Adria Oil Pipelines
- Figure 6: Selected Northwestern Pipelines
- Figure 7: Proposed Far East Oil Pipelines
- Figure 8: Production and consumption of natural gas in Russia, 1985 to 2005
- Figure 9: Gazprom production in Russia
- Figure 10: Production, imports, exports and consumption of natural gas in the CIS, 2005
- Figure 11: Ukraine' s Gas Transport System
- Figure 12: Russian gas market structure 2004
- Figure 13: The UGS, Unified Gas Transportation System of Russia
- Figure 14: Blue Stream Pipeline
- Figure 15: North Trans-Gaz (NEG)
- Figure 16: Development in the East
- Figure 17: Yamal Gas Pipeline
- Figure 18: The structure of the Russian electricity sector, 2003
- Figure 19: The Structure of the Russian Electricity Industry after 2008-09
- Figure 20: Main principles of operation of the new wholesale electricity (capacity) market
- Figure 21: Location of the WGCs (Wholesale Generating Companies)
- Figure 22: Generating capacity of the USSR and successor states, 1917 to 2004
- Figure 23: Nuclear power plants in Russia
- Figure 24: Forecast of Generating Capacity to 2020
- Figure 25: UPS/IPS - The electrical power system of the Russian Federation, Major plants and transmission lines
- Figure 26: CENTREL network
- Figure 27: Production and consumption of coal in Russia, 1985 to 2005, Mtoe
- Figure 28: Coal reserves, coalfields and ports of shipment in Russia
- Figure 29: Coal Consumption in Russia (mn tons of coal)
- Figure 30: Projected coal-fired generating capacity of Russia to 2020
- Figure 31: Coal exports (mn tons), 1990 to 2005
- Figure 32: Organisation of the Russian Nuclear Sector
- Figure 33: Electricity generation from nuclear power
