Sedari, E F M B Reserves PDF

Review of
Natural Gas Pipeline Activity

in Selected Regions
of the World
Prepared for the INOAA Foundation, Inc. by:

Gaffney, CUne &: Associates Inc.
16775 Addison Road, Suite 400
DaUas,Tezas 75248
F-9704 Copyright © 1997 by the INGAA Foundation, Inc.

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Gaffney, Cline & Associates
TABLE OF CONTENTS
Page No.
EXECUTIVE SUMMARY . . . . . . . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
DISCUSSION . • . . . . . . . . . . • . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . . . . . . . 4
1. EUROPE .•....•......•..........................•...•....... 4
2. FORMER SOVIET UNION ........................••......•...... 34
3. SOUTH AMERICA .•........•..........•..•.....••......•....• 50
4. ASIA PACIFIC ......••.••.....•......•......••........•...... 64
4.1 Pacific Rim (Including Australia) ...•...•.•...•...•........•.•. 65
4.2 Far East (Including China) .•.•..•.••••.•.....•••..•..•..•••• 80
4.3 Indian Subcontinent •....•...••..•.•.......••••••••••..••. 87
5. MIDDLE EAST AND AFRICA ........•...•.....•..•••..•...•...•.. 91
5.1 Middle East ....•.•...••••..•.•....••.•••..••.•.•....... 91
5.2 Africa ...•........•••......•.' •....•.....••............ 98
FIGURES
1• Europe - Selected Gas Pipelines

2. Turkey and Adjacent Countries - Selected New Gas Pipelines
3. Former Soviet Union (FSU) - Selected New Gas Pipelines
4. South America - Selected New Pipelines
5. Trinidad - Atlantic LNG and Gas Supply Pipeline
6. Australia - Selected New Gas Pipelines
7. Indonesia - Main Gas Areas
8. West Indonesia - Selected New Gas Pipelines
9. West Malaysia - Selected New Gas Pipelines
10. Myanmar - Selected New Gas Pipelines
11. Papua New Guinea - Possible New Gas Pipelines
12. Philippines - Possible New Gas Pipelines
13. Thailand - Selected New Gas Pipelines
14. China - Possible New Gas Pipelines
INGAA - Gas Pipeline Study _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

A96S.00
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Gaffney, Cline & Associates
15. Japan - Possible New Gas Pipelines

16. South Korea - New Gas Pipelines
17. Taiwan - Main Gas Pipelines
18. Vietnam - New Gas Pipelines
19. Bangladesh - Existing and New Gas Pipelines
20. India - Possible Gas Import Pipelines
21. Pakistan - Possible Gas Import Pipelines
22. Middle East - Selected New Gas Pipelines
23. Africa - New Gas Pipelines
APPENDIX
A. Pipeline Project Spreadsheet
INGAA - Gas Pipeline Study _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

A965.00
EXECUTIVE SUMMARY
The outlook for natural gas pipeline construction has never been brighter.
Natural gas consumption has increased significantly over the years. Since 1985, world
consumption of natural gas has increased 26%. World demand is now about 75 Tcf per year.
The increase would probably have been higher had the economies of the Former Soviet Union
not fallen dramatically during this period. Clearly, the value of n~tural gas is being recognized
in both the developed and developing parts of the world. Nowhere is this more apparent than
in the Asia Pacific region, where consumption of natural gas has doubled over the past ten
years.
Supplies of natural gas are plentiful. Worldwide proven reserves approach 5,000 Tcf
and represent over 65 years of supply at current rates of production. Moreover, significant
discoveries continue to be made increasing the likelihood that supplies will be abundant well
into the 21 st century.
Most natural gas is supplied from regional production close to the area of consumption.
However, there has been a significant increase in worldwide trading of natural gas.
International trade now represents 14% of consumption, increasing by 11 % in 1995. The
largest natural gas trade is still between Canada and the U.S. Nevertheless, all major
consuming regions are creating growth in international trade, spurred on by the desire to
develop large deposits of natural gas from regions that are now accessible because of recent
political and economic changes, as well as technological advances that have been driving
development costs downward.
Some of the increase in demand will be supplied via LNG tankers, particularly to the
markets of Japan, South Korea, and Taiwan. However, pipelines will dominate transportation
to all other markets. Large undeveloped natural gas reserves exist in the North Sea, North
Africa, Russia (both west and east Siberia), Turkmenistan, Iran, Qatar, Indonesia, China, and
Australia. New pipelines are being planned to bring these resources to market.
These trends became evident in our research, which uncovered a total of 266 natural
gas pipeline projects outside of North America representing 82,131 miles (see table below).
More than 75,000 miles are planned for 1997 and beyond, enough to circle the earth three
times! Currently, about 7,000 miles of natural gas pipelines are under construction. Most of
the projects under construction are in Europe and Australia.

1
NATURAL GAS PIPELINE PROJECTS (as of March 1, 1997)

(Miles)
Under Number of
Construction Planned Total Projects
Asia Pacific Total 1,428 21% 20,077 27% 21,505 26% 100
Far East 35 1% 4,888 7% 4,923 6%
Indian Subcontinent 215 3% 1,133 1% 1,348 2%
Pacific Rim 1,178 17% 14,056 19% 15,234 18%
FSU 372 6% 11,913 16% 12,285 15% 20
Europe 2,870 42% 4,227 5% 7,097 9% 49
Africa 894 13% 3,714 5% 4,608 6% 24
Middle East 110 2% 10,810 14% 10,920 13% 16
South America 1,078 16% 24,638 33% 25,716 31% 57
TOTAL 6,752 100% 75,379 100% 82,131 100% 266
Almost 25,000 miles of pipelines are planned for South America. Much of this total
is to bring natural gas from Argentina and Bolivia to Brazil, Paraguay, Uruguay, and Chile. Both
Chile and Colombia will be making significant additions to their gas transmission systems.
About 1,000 miles of pipeline construction are contemplated to bring Peru's huge Camisea
Field to market.
The Asia Pacific region stands out with 100 projects planned for a total length of over
20,000 miles. Most of these projects are to bring remote discoveries to populated areas of
Australia, Indonesia, and Thailand. Australia is moving closer to a national grid with pipeline
projects designed to connect the states. Indonesia, Malaysia, and Thailand are respectively
planning pipelines across Java, Sumatra, the Malay Peninsula, and Southern Thailand to the
Bangkok area. When completed, this will form the main part of the Trans-Asean system. Gas
fields in Myanmar and Vietnam will also connect to this system.
In China, several projects have been proposed to take gas from the Ordos basin to
Beijing and other nearby cities. There are plans to connect the offshore Ping Hu Field to
Shanghai by way of a 249-mile pipeline.
Large transmission projects have been proposed to take the vast reserves from the
countries of the Middle East and FSU to consuming areas in Europe, India, and Japan. Most
of these projects are likely to take five to ten years before construction begins.
A total of 49 projects were found in Europe, totaling around 7,000 miles. Competition
between distributors has led to an expansion of national grids in Northwest Europe utilizing
natural gas from the North Sea and Russia. Italy, Spain, and Portugal are adding transmission
lines to accommodate the increase in natural gas imports from Algeria. Several projects have
been proposed to carry natural gas through Turkey. Turkey is at a strategic crossroad between
the major reserves of the Middle East and Central Asian Republics, and the major consuming
markets of western Europe.
Most of the pipeline projects planned in Africa are located in North Africa to connect
gas fields to the trunklines that bring gas to southern Europe. There are also projects to carry
natural gas to South Africa from Namibia and Mozambique.

2
INTRODUCTION
Gaffney, Cline & Associates (GCA) was requested by INGAA to prepare a report
detailing specific information about natural gas pipeline expansion projects by country for the
following regions:
• Europe
• Former Soviet Union (FSU)
• South America
• Pacific Rim (including Australia)
• Far East (including China)
• Indian Subcontinent
• Middle East and Africa
GCA was not asked to include any projects in North America. In addition to preparation
of this report, GCA was requested to present an executive briefing of the Asia Pacific portion
to members of the INGAA Foundation at a meeting in Houston on March 4, 1997. Color
copies of the slides presented at that meeting were provided to the attendees.
GCA reviewed the available industry literature to compile a list of recently completed
pipelines, pipelines under construction, and planned gas pipelines in these regions. Emphasis
was placed on the more significant projects that created new pipeline systems, rather than
small expansions of existing distribution grids. Generally, such projects are defined as those
with pipelines in excess of 100 miles, with diameters typically in excess of 16". We believe
that we have captured all the projects of this type from announcements through the end of
February 1997. We have also included some shorter, smaller pipelines that were prominently
announced. GCA's main sources of data were the standard industry publications, including
Oi/ and Gas Journal, Pipeline and Gas Journal, Offshore and World Oil. In addition, current
data was also extracted from Platt's Electronic Oi/gram, and such regional magazines as
Petromin, Asian Oil & Gas, and from GCA library files. A compilation of the data surveyed is
presented, by country, in the following report, as well as in the data spreadsheet located in
the Appendix.
For each pipeline project, we have listed the sponsor, starting point and destination,
length and status. If available, we also noted pipeline diameter, completion date and
contractor. This information is often not available, or subject to change, for projects in the
planning stage.
Magazine surveys are fairly relaxed in how they characterize industry activity by simply
adding mileage announcements. To add rigor, we counted only the mileage for the most likely
pipelines among competing alternatives. Further, we assigned the pipeline length for
international pipelines to the country of origin or, when a route was specified, broke down the
length by country. This is why mileage is not always shown for each pipeline. We also added
notes to some of these projects to assist the reader in understanding each project.
Regional and country maps of selected gas pipeline projects have been prepared and
are presented in the Figures section of this report. These maps present the reader with a
general geographic situation of the pipeline project illustrated and is not meant to represent an
accurate route-specified layout.
INGAA - Gas Pipeline Study·_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

3
DISCUSSION
1. EUROPE
Europe can be divided into at least two parts, the western industrialized Europe and the
eastern emerging economies. Both parts of Europe are expected to increase their need for
energy over the next several years. Every country in Europe is expanding their domestic gas
grid and many are looking for ways to diversify their gas resources.
With the opening of the former Soviet Union, several countries are looking toward
Russia and the other republics as sources of energy. Several gas line projects address this
very issue; one of the biggest being the 2,500-mile Vamal to Europe pipeline that will bring gas
from Siberia through Russia, Belarus and Poland to a connection with the German gas
distribution network.
Another major gas pipeline, the Magreb-Europe pipeline which has just gone into
operation, runs from the Hassi R'Mel gas field in Algeria across Morocco under the Straits of
Gibraltar to Spain and from Spain to France and Portugal.
Norway is still the major supplier to Europe and is extending its gas trunkline system
by building several new pipelines to transport gas from North Sea and Norwegian Sea fields
to Germany, France and then the rest of Europe. Norway with her 47.5 Tcf of natural gas and
extensive exploration and development plans will be a major supplier of natural gas to Europe
for the foreseeable future.
The U.K.'s North Sea acreage contains an estimated 23.3 Tcf of natural gas reserves.
The U.K. uses much of the natural gas it produces, but does export some to the continent.
A pipeline connecting England and Belgium, which is to be completed in 1998, will extend the
exports of natural gas to Europe. In 1994, legislation was passed which will end the monopoly
of British Gas by the year 1998. This has led to a complete restructuring of the natural gas
business in the U.K. The start up of the Central Area Transmission System in 1993 was the
beginning of a natural gas grid for the U.K.'s North Sea acreage.
Germany is the hub of natural gas transportation in Europe. Many of the major
Norwegian trunklines connect with the German gas distribution system, and now the pipelines
from Russia are expected to connect with the German system. Even the Magreb-Europe line
from Spain, and the trans-Med pipeline from Italy are expected to connect with the German
system. The German gas grid is expanding due to competition between Ruhrgas, the largest
German gas distributor, and Wingas, a joint venture between Gazprom and Wintershall.
Wingas has been building its own gas grid in Germany and elsewhere in Europe in order to
compete against the larger Ruhrgas.
In the Netherlands, gas production and consumption have remained relatively level over
the last ten years. In 1985, 3.01 Tcf of natural gas was produced, 2.69 Tcf in 1990 and 2.95
Tcf in 1994. In 1985, 1,613 Bcf of natural gas was consumed, 1,538 Bcf in 1990 and 1,667
Bcf in 1994. The natural gas pipeline system from the offshore fields to the gas processing
facilities on land was designed to handle gas from sections of the Dutch North Sea that have
never been developed. The Netherlands is currently one of the few countries in Europe with
under-utilized gas pipelines. To correct this situation, most of the exploration and development

4
in the Dutch offshore is being concentrated near the offshore grid, especially in Blocks K, L,
and P. Another development in the Dutch gas industry is the emerging competition between
local gas distribution companies and Gasunie. Several of the local gas distribution companies
are planning to purchase gas directly from a provider rather than Gasunie.
Locted in southern Europe, and very close to the Caspian Sea countries of
Turkmenistan, Azerbaijan, Kazakhstan, and Iran, Turkey is another major transportation center
for natural gas. Turkey is not only a major transporter, but also a major consumer of natural
gas. The current supply arrangements in Turkey will only cover about one-third of Turkey's
natural gas needs in the next 10 to 1 5 years. Most of this gas will be used by industry and
for power generation. Numerous pipeline projects are planned to deliver gas to Turkey, and
then transport additional gas to Europe. Turkey is strategically situated to transport gas from
the Middle East to Europe. Turkey is also increasing its use of LNG.
Among the eastern European countries, Hungary and Poland have made the most
progress in integrating their systems with other European systems. Hungary received all of
its natural gas from Russia until recently when a pipeline from Austria gave Hungary another
source of natural gas through the Austrian and German gas grids. This was the first time that
a central European country has established a connection with western Europe for energy since
the fall of the Soviet Union.
Poland is on the route of the YamaHo-Europe pipeline and, in fact, part of the pipeline
in Poland is already in operation. Poland still receives most of its natural gas from Russia and
will increase its dependence on Russia as more gas flows through the YamaHo-Europe
pipeline. In order to ameliorate this dependence somewhat, Poland is increasing natural gas
storage facilities, and investigating the use of LNG from Qatar, Norway, Nigeria or Algeria.

5
Country Overview ALBANIA
Albania continues to be one of the poorest countries in Europe, with much of the urban
population depending on humanitarian aid to meet basic needs.
In July 1996, the Albanian 'prime Minister announced the total privatization of the
country's economy, including the oil and gas sectors.
In November of 1995, Albania held its second international onshore licensing round; ten
blocks were offered in this round.
Fountain Oil, as part of a joint venture with Albpetrol, the state oil company, is planning
to drill two horizontal wells in the Gorischt-Kocul Field. Initially the heavy oil from this field
will be sold to local refineries, but it may be exported after the refurbishing of one of the two
pipelines running to the port of Vlore.
Alliance Resources also has a joint venture to enhance production from the
Kucova/Arrza Field. Other companies operating in Albania include INA-Naftaplin, Croatia's
state oil company, Shell, Coparex, and Premier Oil.
Natural Gas Pipeline Activities
Gazprom has selected a route that runs from Russian port of Tuapse under the Black
Sea to Trabzon in Turkey, and from there gas will be delivered to Greece, Macedonia and
Albania.

6
Gaffney, Cline & Associates
Country Overview AUSTRIA
Exploration activity in Austria is concentrated on finding natural gas. The Vienna Basin
remains an attractive province. In 1996, OMV made three discoveries in five wildcats. The
discoveries include:
• Wienerherberg South 1 found gas in eight different zones at 2,788 feet;

• Bernhardsthal South 2 cut 131 feet of sandstone pay between 5,576 and 6,560
feet;
• Spannberg South 1 found gas in three of four target areas.
Austria's location between eastern Europe and the former Soviet republics and western
Europe makes it a natural consideration for extension and enlargement of its gas grid into a gas
transportation center.
• In October 1996, the Austrian Bavarian Gas line (ABG), a 150-meter (93 mile)
pipeline running under the Salzach River from Puchkirchen, Austria, to
Burghausen, Germany, opened. This link brings gas from Russia via Slovakia
and Austria to Germany. The pipeline has two strands and is capable of moving
8 billion cubic meters per year, but only a fraction of that capacity will be used
at first. The Austrian company OMV owns the pipeline in Austria.
• The Hungary-Austria Gas line (HAG), a 28", 75-mile line which runs from
Baumgarten, Austria, to Gyor, Hungary, opened October 1, 1996. MOL will
purchase gas from Ruhrgas under a long-term agreement signed in May 1995.
The pipeline can deliver up to 4.5 billion cubic meters of gas per year and cost
US$20 million to build. tig1fg;~~fili!ti~.~

7
Country Overview BELGIUM
The construction of the Interconnector pipeline from Bacton, England, to Zeebrugge,

Belgium, is the moving force behind the expansion of the natural gas grid within Belgium. In
January 1996, Distrigaz sent a memorandum of terms and conditions under which Distrigaz
would ship gas from the Interconnector to other parts of Europe. As a result of the transit
contracts resulting from this memorandum, Distrigaz will be spending US$360-450 million on
improving the gas grid. Construction on the gas grid projects is to begin in the spring of 1997,
and be completed by October of 1998.
Germany's Wingas, a joint venture between Wintershall and Gazprom, has the rights
to transmit 1 billion cubic meters of gas from the Interconnector pipeline through Belgium via
Distrigaz's network to Aachen, Germany. At Aachen, the gas will enter the Wedal pipeline
system being built by Wingas. The gas will be transmitted approximately 140 miles within
Belgium.
Distrigaz is expanding the gas grid within Belgium and is planning numerous additional
projects.
Zeebrugge, Belgium, will be the continental terminal for the Interconnector which runs
from the U.K. under the English Channel to Belgium.
INGAA - Gas Pipeline Study _ _ _ _ _ _ _ _ _ _ _ _ _ _ _-:--_ _ _ _ _ _ _ _ __

8
Country Overview BULGARIA
Bulgaria has poor prospects for supplying its natural gas needs from domestic sources.
Production in 1995 was 700 BOPD of oil and 5 MMcfd of natural gas. Both Maxus and Edison
Gas have relinquished their rights to exploration and production in the country. Enterprise Oil
has acquired the six Ropotamo offshore blocks and is planning minimal exploratory drilling.
Texaco has preliminary plans to develop the Galata Field where gas was found in 1993.
Texaco is planning a 50 MMcfd production facility and a 31-mUe pipeline.
In January 1997, Bulgargas, the Bulgarian gas company, and Gazprom signed an
agreement whereby Gazprom will supply 3.34 billion cubic meters of gas annually. From
January 1997 through May 1997, the gas will be supplied at a reduced cost; after June 1,
1997, the gas will be supplied at full market rate and paid for up front. The reduced price is
part of a compensation package to Bulgaria for construction work done in Russia by Bulgarian
companies. Transit fees for gas piped through Bulgaria to third countries are still to be
negotiated.
None

9
- -_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Gaffney, Cline & Associates
Country Overview CROATIA
Oue to the continuing war in neighboring Bosnia-Herzegovina, Croatia had to resist

exploratory efforts to the Pannonian Basin in northern Croatia. Several seismic projects were
undertaken and an appraisal well confirmed an earlier gas discovery. One wild cat well also
found oil.
INA-Naftaplin, the state oil company, did not have production from the Oeletovci, lIaca
and Privalaka oil fields because they were occupied by Serbian troops. An estimated 3,050
BOPO were shipped by these troops back to Serbia. In the overall peace plan for the former
Yugoslavia, these oil fields are to be returned to Croatia. Production from other fields in
Croatia averaged 31,236 BOPO in 1995.
None

10
Country Overview CZECH REPUBLIC
The Czech Republic is trying to diversify its sources of energy. Currently, coal accounts
for about 60% of Czech energy demand, followed by oil at 16%, natural gas at 15%, and non-
fossil fuels at 8%. Except for coal, the Czech Republic produces very little of its energy and
is, therefore, dependent on energy imports, primarily from Russia.
Energie Klado (EK), a privatized state company, holds eight coalbed methane licenses
and has formed a joint venture with Marine & Mercantile Securities to develop these resources.
Moravske Naftove Doly (MND), the state oil company, continues to explore for oil and
natural gas, both in the Czech Republic and in Turkey, India, Pakistan, and Bangladesh.
Presently, the Czech government is considering several alternative natural gas supply
contracts and a decision may not come until April 1997. Among the parties submitting
contracts are Norway, Germany, and the Netherlands. Gazprom, which currently supplies all
the natural gas to the Czech Republic, has also submitted a contract which may contain a
clause allowing the Czech Republic to pay for part of the gas supplies with products produced
in the Czech Republic.
None
INGAA - Gas Pipeline Study_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

11
Country Overview DENMARK
Denmark continues to develop its offshore petroleum industry. In 1996, the Fourth
Offshore Licensing Round was held and nine exploration awards were made to seven
consortia. Just two exploration wells were drilled in 1995; however, both wells appraised or
discovered notable reserves.
Amerada Hess drilled an appraisal well in the South Arne structure and is now planning
for first production in 1998.
Statoil's Siri 1 discovery may be the largest oil discovery off Denmark since 1977. It
is thought to hold reserves of 1 50 million barrels of oil, plus associated gas. Statoil is
investigating a floater development of Siri, with production to begin in 1998. Statoil is also
planning the development of the Amalie gas field.
Maersk is developing the Elly gas field and the Alma gas condensate field.
Amerada Hess is planning to build a pipeline from the South Arne Field to Kaergard on
the Danish coast. This pipeline will be able to transport about 4 billion cubic meters per year
and will cost approximately US$260-430 million to build. Gas deliveries from Germany or the
U.K. could be tied into this pipeline, as well as it could provide gas transportation for other
small fields in the area.
In order to meet Denmark's natural gas needs, Dansk Olie & Naturgas AS (DONG) is
negotiating with Norway for increased imports of Norwegian gas. Additional pipelines between
Norway's offshore fields and Denmark may be necessary to handle these additional gas
requirements.
Smaller pipeline projects:
• Harald West Field to Tyra East Field (48-mile, 24" pipe);
• Expansion of the Danish-German Deudan gas pipeline was completed in October

1996.

12
Country Overview FINLAND
The fall of the Soviet Union had a profound impact on Finland. Russia had supplied
about 80% of Finland's crude oil requirements, or about 9 million metric tons in 1988; in
1995, Russia supplied only 3 million metric tons. Finland had to diversify their petroleum
supply by looking primarily to the North Sea. Neste, the Finnish state-owned energy company,
has interests in several Norwegian projects, including Smoerbukk, South Smoerbukk, Midgard,
and Heidrun. Neste also has interests in the U.K. North Sea and Oman.
Gasum, Finland's natural gas distributor, is a joint venture between Gazprom and Neste.
While Gazprom was included in the joint venture to guarantee continued gas supplies from
Russia, Gasum is diversifying the sources for gas supplies.
Gasum plans to double the capacity of the pipeline between Russia and Finland with
a US$160 million project.
Long-term plans include a pipeline from Haltenbanken, offshore Norway, through

Sweden north of Stockholm to Helsinki.
Another pipeline in the long-term plan is one from Helsinki to Copenhagen, Denmark,
and then on to Berlin, Germany.
In December 1996, the European Union Council of Ministers approved a proposal to

include the Nordic Gas Grid in the Trans-European Energy Networks (TEN). The Nordic Gas
Grid will integrate the natural gas networks of Finland, Sweden, and Denmark with diversified
supplies and create a northern transmission route to continental Europe. The Nordic Gas Grid
may eventually include the Baltic states. The first feasibility study, which will study various
alternatives to link the Nordic states networks, will be carried out in 1997 at a cost of about
US$1.5 million.
A 160-mile, 20" pipeline running from Gaule, Sweden, into Finland is in the final
planning stage.

13
Country Overview FRANCE
France continues to have limited exploration; drilling activity increased from 17 wells
in 1994 to 19 wells in 1995 and approximately 23 wells in 1996. Of the 19 wells drilled in
1995, Coparex International completed one gas well and two oil wells, Exxon completed four
oil wells, and Canyon Energy continues to explore the Paris Basin after testing the La Vielle
Borde-1 well at a rate of 18 BOPD. Elf will not develop the Anatares-3 well.
The NorFra pipeline, which runs from the Sieipner gas field in the North Sea to
Dunkerque, France, will be the largest trunkline in the Norwegian system. The 534-mile, 40"
line will extend from the 16/11-E complex riser platform through Dutch and Belgian waters
before turning southwest toward northern France. This trunkline could be operational by
October of 1998, with an expected annual throughput of 12 Bcm. ~ig§§;i3~1j~~ngiplII!i~!~
Gaz de France will build a 115-mile gas pipeline and gas handling stations between
Dunkerque and Gournay sur Aronde at a cost of US$211 million.
There are several gas distribution pipeline projects in various stages of development in
France:
• A 11 O-mile, 32" pipeline running from Toulouse-Lias to Nabonne-Argeliers has

obtained all of the necessary right of way clearances and should be operational
in 1997.
• Gaz de France is building a 250-mile gas transmission line this summer. This
pipeline which will carry 10 Bcmy will allow the French national gas grid to
operate as a loop and meet the rising energy demand in the southern part of the
country. The commissioning of the pipeline is planned to coincide with the
installation of a gas compression station at Saint-Martin-Crau.
INGAA - Gas Pipeline Study· _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

14
Country Overview GERMANY
Drilling activity in Germany continues at a moderate level. In 1994, there were 30

wells drilled, and 42 wells were drilled in 1995. Of the three exploratory wells drilled, two
were successful. BEB found oil in the Imbrock Z1 well, and Mobil found gas in the
Krusenhausen T2A well.
Germany continues to increase its imports of natural gas and to be a major natural gas
transmission center in Europe. In 1995, the sources of natural gas supplies in Germany were
domestic (21 %), Netherlands (26%), Norway (14%), and Russia (37%). By the year 2000,
natural gas supply sources are expected to be domestic (16%), Netherlands (20%), Norway
(27%) and Russia (34%). Because of its increasing demand and its importance as a gas
transmission center, many new and proposed pipelines end or connect in Germany.
Europipe I runs from 16/11 riser complex near the Sieipner gas field to Emden in
Germany. This 40" diameter, 186-mile trunkline was opened in 1995.
Europipe II, which has been approved by Norway's parliament, will run from Kaarsto,
Norway, to Dornum, Germany. The 394-mile pipeline will cost US$1.1 billion and will be built
by Statoil. It should be operational by October 1999.
Wingas, a joint venture between Gazprom and Wintershall, is developing a gas grid
throughout Germany. Pipelines in this gas grid include:
• The Wedal pipeline, which will extend from Bielefeld in central Germany to
Aachen near the German/Belgian border. This 186-mile line will run through the
Ruhr industrial area and allow gas from the U.K. to be supplied to this area via
the Interconnector and Distrigaz lines in Belgium. The flow can also be reversed
in the future so that Russian gas could be supplied to the U.K. if the need
arises. The Wedal pipeline will connect with the 745-mile Megal/Stegal pipeline
system;
• A 51-mile segment of the pipeline from the connection with the existing
pipelines to Soest and Lippstadt has been completed and deliveries of gas began
in January 1997. The additional 137-mile stretch to Aachen is to be completed
by autumn 1998;
• Wingas is studying the possibility of reactivating a used portion of the
Marseilles, France, to Karlsruhe, Germany, SPLSE (Southern European Crude
Pipeline) as a gas pipeline that would permit deliveries to southern France via
the Wingas pipeline system. The SPLSE would connect with the Wingas Midal
pipeline at Karlsruhe;
• The Midal pipeline system runs the 397 miles from Emden on the North Sea to
Karlsruhe and has been in operation about two years;
• Wingas is studying the possibility of extending their pipeline system to Basel on
the border of Switzerland, and from there supply natural gas to Italy;
• Wing as is also studying the possibility of supplying gas to Austria via Bavaria
to the OMV pipeline system.

15
The first section of the Yamal-to-Europe pipeline system to be completed runs from
Szamotuly, Poland, to Frankfurt an der Oder, Germany. December 1996 marked the start up
of the 75-mile section, which was build at a cost of US$184 million. Initial deliveries of 600
million cubic meters per year will come from already producing Siberian gas fields with
connections to Germany. As the Yamal-to-Europe pipeline is finished, the deliveries will come
from the Yamal Peninsula gas fields. For more information on the Yamal-to-Europe pipeline,
please refer to the Russia section of this report.l;igijrei1:iRip~liti~;9
In October 1996, the Austrian Bavarian Gasline (ABG), a 93-mile pipeline running under
the Salzach River from Puchkirchen, Austria to Burghausen, Germany, opened. This link brings
gas from Russia via Slovakia and Austria to Germany. The pipeline has two strands and is
capable of moving 8 billion cubic meters year, but only a fraction of that capacity will be used
at first. The Austrian company, OMV, owns the pipeline in Austria.
Expansion of the Danish-German Deudan gas pipeline was completed in October 1996.
In 1997, Ruhrgas plans to begin operation of a 100-mile, 36" diameter gas transmission
line to run from Breitbrunn to Anwaiting.
In 1997, Wingas plans to begin operation of a 186-mile, 30" diameter gas distribution
system in the North Rhine and Westphalia districts of Germany.
As of 1995, Ruhrgas was operating a 125-mile, 1 ,200-mm diameter gas transmission

line between Wardenberg and Werne.
Numerous short-distance gas distribution projects are in various stages of development

in Germany.

16
__ ~ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Gaffney, Cline & Associates
Country Review GREECE
In late 1995, Greece held an international licensing round under revised petroleum laws
that bring Greece into compliance with the European Union Hydrocarbon Licensing directive.
The licensing round included three onshore and three offshore blocks. Four out of the six
blocks were awarded to Enterprise and its partners, Union Texas and Triton. The Public
Petroleum Corp of Greece (DEP-EKY) hopes to conclude agreements by March 1997.
The European Union is contemplating legal action against Greece for placing barriers in
the way of petroleum imports. Certain aspects of Greek law on the stocking, transportation
and distribution of petroleum products are in opposition to the EU legislation on free movement
of goods.
The Public Gas Corp. of Greece (DEPA) has been constructing a high-pressure natural
gas transmission and distribution system since 1990. This system includes construction of
an LNG reception terminal for planned imports of Algerian LNG and a high-pressure pipeline
running from Kula on the Greek/Bulgarian border to Athens and then to Lavrion. This 342-mile,
30" diameter pipeline will import gas from Russia. The gas transmission and distribution
system is expected to be completed by 1999. Delays in converting coal-powered electricity
generation plants into natural gas-powered electricity generation plants left DEPA with a
financial crisis over how to pay for the natural gas deliveries from Gazprom. Natural gas
power generation was to have been the driving force behind demand growth. In October
1996, the European Investment Bank loaned DEPA US$254 million to complete the
construction and to begin operation of the pipeline system.

17
Country Overview HUNGARY
Hungary is actively trying to expand its limited oil and gas resources. Use of 3D
seismic to reexamine mature basins and offering concessions to foreign oil companies are just
two of the methods being used to expand Hungarian oil and gas production. Four foreign
companies currently hold licenses awarded in 1994; they are Mobil, Occidental, Coastal Oil
& Gas, and Blue Star Corp.
MOL, the state oil company, accelerated development of two large gas fields,
Devavanya and Totkomlos. Totkomlos went onstream in 1996, with an average daily
production of 8.4 MMcf; Devavanya is to come onstream in 1997. Natural gas consumption
in Hungary is expected to grow at the rate of 4.4% per year for the next five years.
Additional privatization of MOL was delayed from October 1996 until early 1997. MOL
is already about 42% in investors' hands, with plans to make another 10% available.
Trying to lessen its dependence on Russian natural gas, Hungary began importing gas
from Europe through a spur running from Baumgarten, Austria, to Gyor, Hungary. This 75-
mile, 700-mm pipeline can deliver up to 4.5 Bcmy. This new connection, known as the HAG,
or Hungary Austria Gasline, represents a significant development for Hungary and other central
European countries because this pipeline gives Hungary and other central European countries
an alternative to Russian natural gas supplies. IiiLii.i.dIlUi~l!;

18
, - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Gaffney, Ciine & Associates
- LEGEND
............
EXISllNG GAS PIPELINE
PLANNED or UNDER CONSTRUCllON PIPELINE
EUROPE
Selected New Gas Pipelines
Proj. A965 March 971 Checked: I/l 1 Fig. 1

INGAA - Gas Pipeline Study
Country Overview IRELAND
Ireland held the largest offshore licensing round in Europe since Norway's first licensing
round in 1965. In the Rockall Trough, 615 complete blocks and 35 partial blocks were
offered. The closing date for the licensing round is March 26, 1997. This area is virtually
unexplored, with only 3,720 line-miles of seismic having been run. The blocks are in water
depths ranging from 1,640-8,200 feet.
Several oil companies are active in Ireland. Marathon discovered natural gas at its
48/25-3 well; an appraisal well tested at 23.3 MMcfd. Enterprise Oil has begun a US$21
million exploratory drilling program in the Slyne Trough and Statoil is planning a 3D seismic
program in Block 26/28a area. Arcon is seeking partners to develop the Helvie oil discovery
in Block 49/9.
A feasibility study on linking the gas networks of north and south Ireland has been put
on hold until at least March 1997. Currently, there is just one pipeline from the U. K. to
Ireland. A pipeline linking the southern gas grid of Ireland to the Northern Ireland pipeline
would provide an alternative should there be a disruption in normal gas supplies.
British Petroleum is studying a 50-mile, 6-12" diameter pipeline to run from the
Schlehallion Field in the North Atlantic to Ireland. The pipeline may be operational in 1997.

19
Country Overview MACEDONIA
Generally considered the poorest republic of the former Yugoslav federation, Macedonia
can meet basic food and energy needs through its agricultural and coal resources. It must
import all of its oil and gas and most of its machinery and parts. Nearby fighting and potential
political instability make Macedonia of little interest to foreign investors. Its physical location
does make Macedonia a possible transportation corridor between western Europe, the Aegean
Sea, and southern Europe.
A 103-mile pipeline is under construction from Kriva Palanka, Bulgaria, to Skopje,

Macedonia. This US$66 million pipeline will have a capacity of 0.8 Bcrny.
Gazprom has selected a route that runs from Russian port of Tuapse under the Black
Sea to Trabzon in Turkey, and from there gas will be delivered to Greece, Macedonia and
Albania.
A pipeline running from Skopje to Deve Baira, Albania, is a possibility by the year 2000.
This would be a 124-mile, 30" diameter pipeline.

21
Country Overview THE NETHERLANDS
In 1996, the Netherlands opened their ninth offshore licensing round and offered all
open acreage under a new open-door policy. There have been changes to the regulatory
regime so that it is in alignment with the European Union Hydrocarbon Licensing Directive.
These changes must be approved by the parliament and this has led to delays in awarding
concessions.
As of 1995, the Netherlands had natural gas reserves of 66,215 Bcf, which is an
increase from the reserves of 6,100 Bcf reported in 1990, but a decrease from the reserves
of 68,482 reported in 1985.
Onshore, Hardy Oil & Gas received a concession for the Donkerbroek gas field, but has
not released their plans for this field.
NAM was awarded two onshore permits, the Ijsselmuiden and the Andrell II. NAM also
was awarded a production license for Block L/9a and L/9b which are thought to contain an
estimated 340 Bcf of gas. NAM is currently building the largest production facilities on the
Dutch continental shelf to process this gas.
Elf was awarded a production license for the J/6-5 blocks and brought this area on
production through the Markham Field facilities. Elf also brought two other areas on
production through existing facilities; K/5a was connected to the K/5 offshore complex, and
Harlingen 101 was connected to the Harlingen production center.
Clyde Petroleum in developing three gas fields, P/2-NE, P/2-SE and P/6-South. P/2-NE
and P/2-SE could be in production by the end of 1997; P/6-South could be in production by
in 1997.
The trunklines from the Netherlands gas fields have been running under capacity; the
Nogat line is running at 40% capacity, the Noordgastransport line (NGT) is running at 50-60%
of its capacity, and the Westgastransport line (WGT) is running at 75% of its capacity. The
original gas pipeline system was designed to handle production from fields that were never
developed. In an effort to increase usage, there is discussion of extending the Nogat line
northward into the L block since NAM has decided to develop the L/9 prospects. No other
extensions or new trunklines are planned.
• There are several gas distribution pipeline projects in various stages of

development in The Netherlands:
• The Dutch gas distributor, Delta Nutsbedrijven, has proposed a pipeline that
would deliver gas from the U.K. via the Interconnector across Belgium to the
southern Netherlands;

22
• Delta would build a 31-mile pipeline from Zalzate on the Belgian border to
Ossendrecht in the southern Netherlands. This pipeline, which must be
approved by the Dutch government, would be ready by 1998 when the
Interconnector is to be completed;
• Gasunie, the Dutch gas distributor, is studying the possibility of a second U.K.-
to-Europe pipeline that would supply Russian gas to the U.K., and take and store
U.K. gas during the summer months when gas demand is low. The pipeline is
thought to be viable in the next ten years.

23
Country Overview NORWAY
Norway is one of the major players in the European oil and gas market with 8.4 billion
barrels of proven oil reserves and 47.5 Tcf of natural gas reserves. Norway maintained its
position as the largest offshore oil producer in the world by producing 2.7 million BCPO.
Currently there are 28 producing oil fields and 28 producing gas fields.
Even though Norwegians voted against joining the European Union (EU), the Norwegian
government has adopted EU oil and gas legislation. This will allow Norway to maintain its ties
with EU countries and maintain its competitiveness in Europe.
In the 15th licensing round, 18 licenses were awarded covering 46 blocks, 33 in the
Norwegian Sea and 13 in the North Sea. The licensing round for the Barents Sea has been
postponed until 1997.
Among the recent discoveries, the following are notable:
• Saga's Well 6406/2-1 in the Smorbukk Field could contain 2 Tcf of gas and 120
million barrels of condensate;
• Norsk Hydro's Well 30/8-1 as in the Oseberg Field contains 500 Bcf of gas and
25 million barrels of condensate;
• Esso's Well 25/8d-8S in the Tau Palocene structure could contain 60 million
barrels of recoverable oil;
• Norsk Hydro's Well 35/11 a-8S in the Bergen High Basin tested at 4,403 BCPO;
• Norsk Hydro's Well 36/7-1 in the Maloy Fault tested at 6,447 BOPO;
• Saga's Well 34 7-25S in the East Shetland Basin tested at 6,604 BOPO;
• Statoil's Well 34/11-2S in the Tampen Spur Basin tested at 6,150 BOPO.
Before the year 2000, 22 new oil and gas fields are expected to be developed, among
these are:
• Norne oil field in the Norwegian Sea, with 480 million barrels of reserves;
• The Aasgard group development of Smoerbukk, Smoerbukk South and Midgard
Fields located in the Haltenbanken region of the Norwegian Sea and thought to
have reserves of 590 million barrels of oil and 7.9 Tcf of gas;
• Balder Field thought to have reserves of 190 million barrels;
• West Sleipner Field thought to have reserves of 345 million barrels.
Norway has an extensive oil and gas trunk pipeline system connecting Norway with
markets in Europe. The most important of these trunklines are:
• In 1977, Norpipe built a 279-mile, 36" pipeline connecting Ekofisk with Emden,
Germany;
• In 1977, Frigg built a connecting 217-mile, 32" pipeline from Frigg and St
Fergus;
• Statpipe built a 496-mile, 28", 30" and 36" varying diameter pipeline in 1985
connecting Statfjord with Karstoe, and then to Heimdal and 16/11 S-Ekofisk;
• Zeepipe I built a 373-mile, 40" diameter pipeline in 1993 connecting Sieipner
with Zeebrugge, Belgium;

24
• Europipe built a 373-mile, 40" diameter pipeline in 1995 connecting

16/11 (Sleipner area) with Emden, Germany. Several additions are planned to
this trunkline system.
The NorFra pipeline will run from the Sieipner Field (16/11 area) to Dunkerque, France.
This 42" diameter, 534-mile pipeline will shadow the route of the Zeepipe I pipeline into Dutch
and Belgian waters where it will veer southwest to Dunkerque. Gaz de France specified this
route and this pipeline will carry the 40 Bcm of natural gas that Gaz de France will purchase
over a 26-year period beginning in the year 2001. Some contracts for the construction of this
pipeline have been let and the pipeline is expected to be finished by 1998. ~!9~gr,;¥~)'t1l¥i~ejpelinf!
i
Europipe II will run from Karstoe, Norway, to Emden, Germany. This 395-mile, 40"
diameter pipeline will run parallel to the Europipe I pipeline and supply gas to central Europe
by 1999. Staoil is building this pipeline at a cost of US$1. 1 billion. Approval has been given
by the Norwegian government and pipe manufacturing should begin in 1997. There is
discussion of running the Europipe via Denmark so that gas deliveries could also be made to
Denmark and Sweden. This change, of course, would add approximately 31 miles to the total
length. r;;~i~~W:iW!DI~liqe~
!%lau~«&~m;w"J~m
Haltenpipe, which became operational in December 1996, runs from the Heidrun Field
to Tjeldbergodden, Norway. It has a capacity of 4.5 Bcmy, allowing for future tie-ins from
Draugen and other Haltenbanken fields. It is 152-miles in length and 16" in diameter. iji~i~
U'iBiF'ilifli15
~v~J&-&J>:fu.,~~.Je.L.","'W~~h,J.m.>."_.,'l·
Zeepipe IIA will run from the Sieipner Field to Kollsnes, Norway, and will carry 16.5 -
18 Bcmy. This 186-mile, 40" diameter pipeline is being built by Statoil at a cost of US$340
·11· IZr""'l;;;;;;'iill:1]§'l!tI'f*,"'''Nln'''''tm
ml Ion. ,i9,'J§E'''!i~IJli!~~
Zeepipe liB will run from the 16/11 E riser platform to Kollsnes. This 186-mile, 40"
diameter pipeline is being built by Statoil and should be ready for use in 1997.
A pipeline running from Kollsnes to the Draupner platform is being built. This 507-mile,
40" diameter pipeline should become operational during 1997.
Haltenlink is a pipeline running from the Aasgard Fields (Smoerbukk, Smoerbukk South,
and Midgard) to the Statpipe gas trunkline, and then to a gas treatment plant in Norway. This
295-mile pipeline was agreed to recently by Statoil and Aasgard. li§it:@[ll2t~Jg:~.i!lj~il
There are numerous inter-pipeline systems or inter-field pipeline projects in various

stages of development in Norwegian waters.

25
Country Overview POLAND
Poland has successfully introduced market reforms and the Polish economy has been
expanding since 1992. The government is trying to maintain a steady growth of at least 5.5%
through the year 2000. As part of this growth, Poland's cabinet has approved reforms in the
energy sector, including establishment of an energy regulatory authority, allowing third-party
access to the national electricity transmission grid and creation of a competitive energy market
through demonopolization and privatization. While Poland' s ene~gy policy encourages greater
use of petroleum and natural gas, coal is expected to remain the dominant fuel, especially in
electricity generation.
In January 1996, Frontier Oil was awarded a license to explore a concession in northern
Poland. This was the first license awarded to a foreign company since the fall of communism,
and the enactment of Poland's new mining law. In March 1996, Texaco and Tenneco were
awarded a license to explore a concession in central Poland. In early 1996, Petrobaltic, the
state offshore exploration company, announced a gas find in the Baltic Sea. Amoco is
continuing its coalbed methane program. Exxon and Shell are establishing the Polish Petroleum
Development Company.
Until recently, all of Poland's oil and natural gas imports have come from Russia. In
order to reduce dependence on Russia, Poland has begun importing oil from the North Sea and
the Middle East, and has cross-border exchange link to integrate its gas transmission system
with that of Germany.
The first section of the Yamal-to-Europe pipeline system to be completed runs from
Szamotuly, Poland, to Frankfurt an der Oder, Germany. December 1996 marked the start up
of the 75-mile section, which was built at a cost of US$184 million. Initial deliveries of 600
million cubic meters per year will come from already producing Siberian gas fields, with
connections to Germany. As the YamaHo-Europe pipeline is finished, the deliveries will come
from the Yamal Peninsula gas fields. An additional 340-mile segment is under construction and
should be finished in 1997. For more information on the Yamal-to-Europe pipeline, please refer
to the Russia section of this report. fJj9Lilt1i~~!RJpiJiD~1~

26
Country Overview PORTUGAL
Portugal had a moderate growth rate of 3 % expected for 1996. The Portuguese
government is aiming toward modernizing the economy so that Portugal can reach the
productivity and income levels of the more advanced European Union countries. Currently,
per-capita income equals only 55 % of the EU average.
A 330-mile, 28" pipeline running from Setubal in southern Portugal to Braga in northern
Portugal is currently under construction. Also included in this project is approximately 100
miles of a branchline distribution system. The gas for this system will come from Algeria via
the Europe-Magreb system. ~lg~gt~~~1t!fJIgip~!Ifl:c;l!~

27
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Gaffney, Cline & Associates
Country Overview ROMANIA
Romania is central Europe's leading oil producer and is believed to have oil reserves of
900 million barrels and gas reserves of 12 Tcf. Production and reserves have been declining
in recent years. Romania is making a slow and difficult transition to an open-market economy.
In 1996, Romania held its first licensing round under the new petroleum law and
received bids for 8 of the 15 blocks that were offered. Negotiations have begun with the
successful bidders and Romania hopes to have contracts signed by May of 1997.
There are currently ten refineries in Romania, and several recent reports have called for
drastic change in the methods of controlling the downstream sector. The downstream sector
is troubled by overcapacity and over staffing, as well as extensive government interference
in the market place. These problems are slowing foreign investment in the Romanian energy
sector.
None.

28
Country Overview SLOVENIA
Slovenia is by far the most prosperous of the former Yugoslav republics and prospects
appear to be favorable in the near future. Economic growth is expected to remain strong,
while unemployment and inflation are expected to decline slightly. Privatization is expected
to pick up.
Slovenia is considering a proposal from Gazprom to extend its gas line from Hungary
across Slovenia into Italy. While Slovenia imports most of its natural gas, its has contracts
for gas from Russia through Austria and from Algeria through Italy which should be sufficient
through the year 2010. If the pipeline is built, it would be 186 miles and have an annual land
rent of US$50 million.

29
Country Overview SPAIN
Spain has recently been in a severe recession, with about 25 % unemployment as of

1994. The overall improvement of economic conditions in Europe has lead to an upturn in the
Spanish economy as well.
Repsol is planning to develop the Poseidon North and South gas fields in the Gulf of
Cadiz.
Seville, Spain, is the terminus of the 785-mile Magreb-Europe gas pipeline, which is
transporting gas from Algeria's Hassi R'Mel gas field and processing facility through Morocco
and Gibraltar to the Iberian peninsula. The initial capacity of this pipeline is 8 Bcmy for the
Spanish, Moroccan, Portuguese, German and French markets. Fig~~~fl~~~R!Rf:!I.ib~~
The natural gas group is greatly expanding the domestic gas pipeline system in Spain
as a result of the opening of the Magreb-Europe system. The following pipelines are in various
stages of development:
• A 20" pipeline running the 112 miles between Oviedo and Tuy;
• A pipeline varying in diameter from 8-12" running 108 miles between Cordoba
and Jean/Granada;
• A pipeline running 259 miles between Valencia and Alicante;
• A 48" pipeline running 180 miles between Tarifa and Corboda.

30
Country Overview SWEDEN
While Sweden generally has a high standard of living, recent years have seen an
increase in unemployment and a lessening of competitiveness in foreign markets. Sweden
does export some petroleum products, but is considered to have one of the least mature
natural gas markets in the European Union.
Sydgas plans to build a 16" pipeline covering 100 miles between Hyltebak and
Tonkoping at a cost of US$90 million.
Long-term plans envision a pipeline from Haltenbaken, offshore Norway, through

Sweden, north of Stockholm, to Helsinki, Finland.
In December 1996, the European Union Council of Ministers approved a proposal to

include the Nordic Gas Grid in the Trans-European Energy Networks (TEN). The Nordic Gas
Grid will integrate the natural gas networks of Finland, Sweden, and Denmark with diversified
supplies, and create a northern transmission route to continental Europe. The Nordic Gas Grid
may eventually include the Baltic states. The first feasibility study, which will study various
alternatives to link the Nordic states' networks, will be carried out in 1997 at a cost of about
US$1 .5 million.
There are several smaller gas distribution pipeline projects at various stages of
development in Sweden.

31
Country Overview TURKEY
Turkey is important to the energy sector for two reasons. It is a natural energy bridge
between energy-producing countries in the Middle East and central Asia, and the energy
consuming countries of Europe. Also, Turkey is considered by many as a major emerging
market, with a rapidly growing energy sector.
Energy development is one of Turkey's most important projects. Current natural gas
supply arrangements are expected to cover only about one-third of Turkey's needs in the next
10-1 5 years. While Russia has been Turkey's main supplier for years, Turkey is now trying
to diversify its energy suppliers. Turkey has signed a memorandum of understanding with
Turkmenistan for 70 Bcmy of Turkmeni gas beginning in 1998. Turkey is also negotiating with
Iran and Egypt for additional gas supplies. LNG is expected to be another important part of
the energy mix, and Turkey has agreements with Algeria and Qatar and is pursuing other
agreements.
Gazprom has proposed a pipeline running from Mozok, Russia, through Marneulli,
Georgia, to the Turkish border. The first 745 miles of this line would utilize existing pipeline,
but a new pipeline would be constructed from Marneulli to the Turkish border. This pipeline
would give Gazprom another route for gas from the Astrakhan Field, which is currently routed
through Chechnya to Bulgaria to Turkey. fJ§gf;fg~amji~lIi!iE;
Gazprom has selected a route that runs from the Russian port of Tuapse under the
Black Sea to Trabzon in Turkey, and from there gas will be delivered to Greece, Macedonia,
and Albania • .Bi~jne"'$!'P~$B1iS'e1i;;~'tP
l.tmtl:.t.0>.?k,J";,;:.....~1d",";)\\ •.t;u"!,~i.,,x';::."'!~~.E
In January 1997, it was reported that Shell proposed a pipeline to carry Turkmeni and
Iranian gas to Europe via Turkey and connecting with a pipeline from Qatar. Eventually the
pipeline could even carry Syrian and Iraqi gas. fii9§',iijg;limii!iU!ti~
In a separate development, there reportedly is a plan to sell gas to Israel proposed by

a consortium comprised of Russia's Gazprom, Turkey's Botas, TransCanada Pipelines, and
Israeli partner, Del-Men. This proposal will require a 300-mile gas pipeline from southern
Turkey to Israel via the Mediterranean Sea. This project will be an extension of the proposed
pipeline from Russia to Turkey. The consortium claims that gas can be delivered by 1999 .
• Kij~~r~tF:Ji~l;n~
Turkey's gas company, Botas, has initialed an agreement for the import of gas from
Iran. Plans call for the delivery of some 200 MMcfd by the year 2000, increasing to nearly
1 Bcfd by the year 2020. The full scope of this project is to extend the export pipeline to
Greece, incorporating a total distance of some 4,000 miles, with a reported estimated cost of
US$10 billion. Fiilirlifg1ls'liiJ1t~'rfI~§
Iraq has agreed to discuss the potential of exporting gas to Turkey. This US$2 billion
project calls the delivery of 1 Bcfpd of gas through 850 miles of gas transmission pipelines.
fili:~ti~li&J?m~m;1:~i)

32
, - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Gaffney. Cline & Associates
.... LEGEND EXISTING GAS PIPELINE
••• •••••• 0_
PLANNED or UNDER CONSTRUCTION PIPELINE
TURKEY and Adjacent Countries

Pro;. A965 March 9d Checked: 1/1. I Fig. 2

Country Overview UNITED KINGDOM
The U.K. is considered to have one of the world's most favorable fiscal regimes for oil
and gas investment. This is due to several factors, including the relatively low corporate tax
rate, the government's revocation of the Petroleum Revenue Tax on new oil fields and the
reduction of the Petroleum Revenue Tax on existing fields. Development costs in the U.K. are
generally very low.
The U.K.'s portion of the North Sea contains an estimated 23.3 Tcf of gas reserves.
Key producing gas fields include Amoco's 5.7 Tcf Leman, Shell's 1.7 Tcf Indefatigable, and
0.8 Tcf Clipper. The 2.6 Tcf Britannia Field is expected to come on production in the year
1998. Another important gas development is BHP's 1.2 Tcf Hamilton and Hamilton North
Fields. During the 1995-1996 period, the following notable gas discoveries were made in the
U.K.'s portion of the North Sea:
• Talisman's discovery 50/26B-6 is thought to contain 150 Bcf of gas reserves;

• Amoco's discovery 49/18-5 Indefatigable N is thought to contain 100 Bcf of
recoverable gas;
• BP's discovery 47/9A-8Z Flowers is thought to contain 80 Bcf of recoverable gas;
• Arco's discovery well 48/17c-s12 in the Sola Pit Basin tested at 37,000 Mcfd;
• Enterprise Petroleum's discovery well 53/5b-5 in the Anglo-Dutch Basin tested at
12,600 Mcfd;
• Shell's discovery well 49/24-20 in the Anglo-Dutch Basin tested at 26,000 Mcfd.
The Interconnector is the largest natural gas pipeline project in the U.K. The 150-mile,
40" pipeline will run from Bacton, England to Zeebrugge, Belgium, and transport 2 Bcfd to
European markets. It is to be operational in October 1998, which is approximately the
beginning of production from the Britannia Field. The Interconnector is designed to carry gas
to Europe and also to carry gas to the U.K. if necessary. liiiiiJIllJiii~Jim:itl~~;
The Central Area Transmission System (CATS), which began operations in 1993, is
continuing to grow and attract other shippers. Among the fields that will start sending gas
through CATS in 1997 are Armada and the East Trough Area Project.
British Gas built a 100-mile pipeline from Castle Douglas in Scotland to the Ballylumford
power sation near Larne in Northern Ireland and then on to Belfast. Initially the gas line will
only transport 100 MMcfd, but usage is expected to increase threefold by the end of the
century.
A 112-mile, 26" pipeline is to run from the Murdock Field in the North Sea to the
Theddlethorpe processing center on the English coast.
A 121-mile, 26" pipeline is planned from the Britannia Field to St. Fergus and should
be operational in 1997.

33
- _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _"'--_ _ _ _ _ Gaffney, Cline & Associates
2. FORMER SOVIET UNION
This vast region, once a super power, is now composed of 15 independent countries,
each trying to establish a market economy. The safety net of the Russian system is gone, and
gone with it are controlled prices and a planned economy. The energy industry has felt the
strains of the changing economy as much as any other industry. In those countries with
hydrocarbon deposits, development of a petroleum law and the opening of the industry to
foreign investors has been a struggle. The countries without. hydrocarbon resources have
found that the cost of energy has greatly increased as oil and natural gas prices have risen in
response to a free market. This area is still very much in flux and the continued existence of
several of the newly independent states is questioned.
Currently, the newly independent states are still dependent on Russia for their natural
gas supplies, even those countries with extensive reserves still depend on Russia for natural
gas for some parts of their country. Each of the newly-independent states is looking for ways
to lessen their dependence on Russia and to diversify their energy sources.
Many of the countries, which must purchase natural gas, have great difficulty in paying
for it and, in some cases, barter arrangements have been established whereby natural gas is
exchanged for a commodity that the seller needs. The countries whose primary resources are
hydrocarbon products are trying to export them to other nations where they can receive hard
currency, and dependable payment. Many of the newly-independent states have mounting
national debts just trying to meet their energy needs.
The natural gas infrastructure is not in good condition. Finding the funds to refurbish
the existing system, and to build the necessary new pipelines, compressor stations, and gas
processing plants is proving very difficult for the FSU republics.
In the natural gas industry, one almost overpowering entity is Gazprom. While the
Russian oil industry has split into several pieces, the Russian gas industry is still intact as
Gazprom. Gazprom controls the natural gas fields in Russia and the transportation system
within Russia. Gazprom is involved in almost all of the joint ventures dealing with natural gas
in the FSU and supplies gas to all of the former republics. Gazprom is' also very active in
Europe and is aggressively pursuing the European gas market.
Russia is still the major power in the region, and with its gas reserves of 1,700 Tcf, can
be a major player on the world scene. Changes in the Petroleum Law are slowly making their
way through the Duma and foreign companies are engaged in joint projects from Sakhalin
Island to Siberia to the Caspian Sea. The biggest natural gas project in Russia is the Yamal-
to-Europe pipeline which will carry natural gas from western Siberia to Europe. In Poland,
parts of this 2,500-mile pipeline are finished, and Gazprom is arranging the remainder of the
US$40 billion cost. It is hoped that the pipeline will be finished by 1999.
Turkmenistan, with its 101 Tcf of natural gas reserves, ranks third worldwide in natural
gas reserves behind Russia and Iran. The economic development of Turkmenistan depends on
the development and transportation of these gas resources. There are several major pipeline
projects being considered to transport Turkmeni gas to Asia and to Europe.

34
Azerbaijan is a country with extensive oil and natural gas reserves. Several joint
ventures have been signed and are now in operation. At the present time, Azerbaijan uses all
of the natural gas that it produces, but this country should be an exporter of natural gas by
the year 2000. Beginning in 1997, Azerbaijan's gas industry is being renovated and
reconstructed with funds provided by the World Bank.
Kazakhstan contains 83 Tcf of natural gas and about half of this gas must be processed
at a Russian gas processing plant. From time to time, Russia will refuse to process Kazakh
gas, which accentuates Kazakhstan's lack of infrastructure. Because Kazakhstan's gas
producing regions are far removed from the gas consuming regions, Kazakhstan must export
gas to Russia, while importing gas from Uzbekistan. Kazakhstan currently owes Uzbekistan
US$50 million for these imports.
Uzbekistan is the only FSU republic not suffering a decline in production after the
dissolution of the Soviet Union. Even through Uzbekistan is the largest consumer of natural
gas in central Asia, enough gas is produced for them to be a net exporter. It is beginning to
develop new gas resources, and can become a major provider of natural gas to central Asia.
Uzbekistan's major problem is that many of her central Asian neighbors have difficulty in
paying for natural gas; a recent agreement with Kyrgyzstan will allow payment half in currency
and half in sugar and wheat. .

35
_ ........_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Gaffney, Cline & Associates
Country Review ARMENIA
Armenia was designated a heavy industrial region under the USSR's central planning
system and received natural gas from Russia and Turkmenistan from pipelines running through
Georgia and Azerbaijan. Since breaking away from the USSR, Armenia's natural gas deliveries
have been severely limited. The strife and conflict that have existed between Armenia and her
neighbors for centuries is the major reason for curtailment of natural gas deliveries to Armenia.
War broke out between Armenia and Azerbaijan over the. Nagano-Karabakh region of
Azerbaijan, which Armenia now controls. The terrorist uprising in Georgia has disrupted the '
natural gas pipelines running through Georgia into Armenia. Turkey and Armenia have been
antagonists for centuries and Turkey is unlikely to ship natural gas to Armenia.
According to a study done by MPC Inc., Armenia's geological prospects indicate

possible reserves of 6 billion barrels of oil and 6 Tcf of natural gas. In 1995, DEP-EKY, the
Greek state oil company, reportedly was conducting a preliminary exploration program. In
February 1997, the Rand-Paulson Exploration Company signed a joint venture agreement with
the Armenia Energy & Fuels Ministry to more fully explore the republic's hydrocarbon
resources.
Negotiations were started in April 1995 for a pipeline that would run from Turkmenistan
through Iran to Armenia and then to Ukraine. Armenia and Ukraine will find it difficult to fund
their share of the US$1 billion price tag. There will probably be some type of barter or
exchange agreements involving projects in Iran. FJQJlmI~jt1~ftJIt~Jjni!1!I'·
In January 1997, Armenia again proposed a north-south pipeline running from

Azerbaijan through Armenia to Turkey. In the past, Azerbaijan has vehemently opposed such
a pipeline.

36
; - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Gaffney, Cline & Associates
... LEGEND
EXISTING GAS PIPELINE
.•••..•..•. PLANNED or UNDER CONSTRUCTION PIPELINE
FORMER SOVIET UNION (FSU)

Proj. A96S March 97\ Checked: III I Rg.3

Country Review AZERBAIJAN
In the early 1900's, Azerbaijan was the world's largest oil-producing province and has
the potential to once again become a "hot spot" for oil and gas exploration and production.
Recent activity in Azerbaijan has centered on the oil industry and the building of an oil pipeline
to export production to western markets. The final route of this pipeline has not been
determined.
In the past, Azerbaijan has imported all of its natural gas from Russia, Turkmenistan and
Iran. In March 1996, Azerigaz, the state gas distributor, announced that it would no longer
import gas from Turkmenistan, but would develop the gas fields in the Caspian Sea. The
Azeri, Chirag and Guneshli Fields are thought to contain 2.5 Tcf of natural gas. The Umid
structure is believed to contain the largest natural gas deposits in the country. It is expected
that by the year 2005 Azerbaijan will be able to meet all of its natural gas demands from
domestic sources. An overhaul of the gas distribution system could advance this date, and
within the next few years Azerbaijan could become an exporter of natural gas.
The World Bank is funding a gas system rehabilitation project which will include:
• improvements in gas treatment;
• rehabilitation of underground storage;
• gas metering;
• pipeline cathodic protection and maintenance;
• laboratories for gas and appliance analysis; and
• technical assistance for investments in project preparation, institutional

strengthening and training.
• AIOC (Azerbaijan International Oil Company) is constructing a 143-mile oil and

gas pipeline system to connect the Azeri, Chirag and Guneshli Fields with the
shore at Sangachali via the Neftyanie Kamni Field. The cost of this pipeline
system is US$24.5 million and the construction is contracted to Saipem. The
pipeline system should be finished by mid-1997.
• The largest gas compressor in the Caspian region is to be brought online at the
Bakhar Field during the first quarter of 1997. The increased yields realized by
this compressor should allow Azerbaijan to begin exporting natural gas.

37
Country Overview BELARUS
Belarus is experiencing difficulties arising from the breakdown of monetary and trade
relationships between the countries of the FSU. One particular problem for Belarus is the rapid
escalation of fossil fuel prices as these prices are allowed to rise toward world market levels.
Belarus produces only a small amount of its necessary energy requirements and must import
both oil and natural gas, primarily from Russia. Belarus has at times been unable to pay for
its necessary energy supplies and Russia has forgiven parts of the debt by retaining ownership
of the two refineries in Belarus.
It is felt that Belarus oil and gas production could be improved with the implementation
of Western technology. Proved reserves in Belarus are 508 million barrels of oil and 163.5 Bcf
of gas.
Belarus is an important transportation route for oil and natural gas exports from Russia
to Europe. Belarus is to be part of the Yamal-to-Europe pipeline.
The YamaHo-Europe pipeline is a multi-line system that will cover 2,550 miles from the
Yamal Peninsula in Russia through Belarus and Poland to connect with the German gas
transportation system. For a complete discussion of this pipeline, please see the section on
Russia. E';@<itiEIEr:mn:i~mn
w,~~""w'w2,_&,~J.lMJ!«W&&=,<,,:0!5i
The Belarus section of this system will consist of a 130-mile double pipeline from
Nesvizh to Kondratki where the pipeline would then connect with the Northern Lights system
into Poland. This part of the pipeline system is projected to cost about US$500 million and
to be completed in 1997.

38
Country Overview ESTONIA
One of the first countries to declare its independence from the Soviet Union, Estonia
has the second highest per-capita income among the FSU, republics and has benefitted from
extensive investment in the country, especially from the Scandinavian countries.
Estonia produces some oil shale which is used to generate electricity. Estonia imports
oil and natural gas primarily from Russia.
A natural gas pipeline from Norway across Sweden and Finland to Estonia and Latvia
is mentioned from time to time, but there are no firm plans for such a pipeline.

39
Country Overview GEORGIA
Georgia, which once had one of the strongest economies in the Soviet Union, has faced
a number of debilitating problems since declaring its independence. It has suffered from years
of civil strife, including separatists struggles in Abkazia and Ossetia and a civil war in 1992.
While the economy is beginning to rebound, Georgia still faces many problems, including
difficulties in the energy sector.
Georgia produces some oil, but no natural gas. Production from a gas deposit near
Tbilisi is expected to begin soon. Among the joint ventures currently working in Georgia,
British Gas, Pecten, and Gruzneft are exploring three blocks in the Black Sea adjacent to the
coastline in the Kartii depression. The Ninotsminda, Shromis-Ubani, Supsa, and East and West
Rustavi Fields are part of a rehabilitation project by the GOOC joint venture. The IVOG joint
venture is rehabilitating the Samgori Field.
Georgia's location makes it a logical transportation hub for oil and gas from Russia and
the Caspian region to Turkey and Europe.
Gazprom has proposed a pipeline running from Mozok, Russia, through Marneulli,
Georgia, to the Turkish border. The first 745 miles of this line would utilize existing pipeline,
but a new pipeline would be constructed from Marneulli to the Turkish border. This pipeline
would give Gazprom another route for gas from the Astrakhan Field, which is currently routed
through Chechnya to Bulgaria to Turkey. Grutransgas, a Georgian gas pipeline company, is
trying to form a joint venture with a Swiss company to build the new section of the pipeline.
The existing section is in need of modernization and upgrading.

40
Country Overview KAZAKHSTAN
Among former Soviet republics, Kazakhstan ranks second in area, fourth in population
and third in both energy production and consumption. Kazakhstan suffers from many of the
same problems as other newly independent republics, including civil strife between ethnic
Russian and ethnic Kazaks, declining GOP, and a dependence on trade with Russia.
In January 1995, Kazakhstan and Russia signed a series of accords which included
agreements to establish customs-free trade between the two countries, and to jointly develop
the Karachaganak gas field. Kazakhstan is open to foreign investment and several major oil
companies are active in Kazakhstan.
Kazakhstan contains around 83 Tcf of natural gas reserves. The Karachaganak gas
field, which is being developed by Agip, British Gas and Lukoil, contains 46 Tcf of natural gas.
Gas from this field is sent to the Orenburg gas processing plant in Russia, however, at times
Russia refuses to receive gas from this field. The Tengiz Field contains 13 Tcf of natural gas;
Chevron is developing this field. Gas from this field may enter either the national gas grid for
Kazakhstan or be exported. Oil from this field is destined for the Capsian Pipeline Consortium
system which will run either to Novorossiysk, Georgia, on the Black Sea or through Turkey to
the Black Sea.
The Kazak gas sector has a lack of infrastructure, especially pipelines, connecting the
gas producing areas of the northwest with the gas consuming areas of the south and east.
Therefore, Kazakhstan is forced to export much of its gas production to Russia, while
importing most of its natural gas consumption from Russia, Turkmenistan and Uzbekistan.
Expanding the national gas grid is a major emphasis for the Kazak government.
• Kazakhstan has tendered its transit pipelines for gas from Russia, Uzbekistan
and Turkmenistan. The 15 concessions offer the investor management control
and transit fees in return for investments and upkeep of the pipelines. The
tender includes a 248-mile portion of the Soyuz pipeline that exports gas from
Russia to Europe, 310 miles of the Bukhara-Ural pipeline connecting Uzbekistan
to Russia, and 372 miles of the Central Asia-Centre pipeline that connects both
Uzbekistan and Turkmenistan to Russia. Only about 25% of the capacity of the
pipelines is used, and many sections are in disrepair. Enron, Gaz de France,
Bridas, Nacosta, and Saipem are among the firms considering the tender.
• Kazakfragaz is considering expanding gas storage in southern Kazakhstan.
• Kazakhstan is planning to expand their national gas grid, but no details are
available.

41
- _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Gaffney, Cline & Associates
Country Overview KYRGYZSTAN
Kyrgyzstan is a mineral-rich country with insignificant amounts of petroleum and natural

gas and, therefore, must import large quantities of both fuels to meet its energy demands. The
government would like to reduce the dependence on imported fuels. Hydroelectric energy
appears to be the only viable fuel option. Currently, hydroelectric energy supplies about one
fourth of Kyrgyzstan's energy needs.
Kyrgyzstan has seven developed oil fields and two oil and gas fields, which have low
recovery rates due to difficult geological structures and water encroachment. Natural gas is
imported in the northern part of the country through the Bukhara-Tashkent-Bishkek-Almaty
pipeline. In the southern part of the country, natural gas comes from Turkmenistan and
Uzbekistan. Uzbekistan's decision to charge world prices for its natural gas has led to a
payment crisis in Kyrgyzstan. From time to time, Uzbekistan terminates deliveries to
Kyrgyzstan because of delinquent payments.
A tender call for seven blocks in the Fergana Basin was slated for 1995, but no award
details have been released.
None

42
Country Overview LATVIA
Latvia, like its Baltic neighbors, has been very successful in attracting foreign
investment. Most of the investments are in the area of electronics and automotives.
In 1995, Amoco and Olje Prospektering signed an agreement to explore and develop
the Dalders prospect in the Baltic Sea. Lithuania was angered by this move because of
outstanding border claims between the two countries. Latvia c::laims that the deal does not
cover the disputed area, and that Latvia would not develop the field until the dispute was
settled. Amoco says that implementation of the agreement is contingent on the resolution of
the border dispute, and also stressed that the quantity of the reserves was highly uncertain.
Latvia is totally dependent on imports to satisfy its energy demands, and a" of the
imports come from Russia.
A pipeline running from Norway across Sweden and Finland to Estonia and Latvia is
discussed from time to time, but presently there are no plans to build this pipeline.

43
- - - -_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Gaffney, Cline & Associates
Country Overview LITHUANIA
Lithuania was the first Soviet republic to declare its independence and Russia
responded, in part, by temporarily cutting off oil supplies to the country. Lithuania is totally
dependent on imports to meet its oil and natural gas demands. The Mazeikiai refinery in
Lithuania operates at near-peak capacity. It receives oil by pipeline from western Siberia, and
provides refined products to the other Baltic republics.
A border dispute between Lithuania and Latvia was intensified when Latvia signed an
exploration and production agreement with Amoco and Olje Prospektering. Lithuania
responded to the signing of the agreement by recalling their ambassador to Latvia.
Gargzdal State Oil Enterprise (GSOE) and Petroleum Exploration AB of Sweden formed
a joint venture to operate and further exploit the Genciai Field. A joint venture between
Minijos Nafta of Denmark and Naftos Geologijes Imone of Lithuania will develop the Gargzdai
oil field, which is thought to contain 18 million barrels of in-place oil reserves.
Butinge Nafte, Lithuania's state controlled oil company, has contracted with Fluor
Daniel to build a buoy-type import-export oil terminals.
None known

44
Country Overview MOLDOVA
Moldova, like most other FSU republics, is still highly dependent on Russia. Russia also
has a strategic interest in Moldova's Trans-Dniester region. For centuries, Russia has had
military bases in this region, the threshold of the Balkans, and is demanding that Moldova give
permanent basing rights. In 1992, Russia backed a rebellion against Moldova and keeps an
estimated 6,000 troops in the Trans-Dniester region despite an agreement to withdraw them.
Despite cutting its gas use to a minimum last winter, Moldova owes Russia US$400
million for gas. Russia is forgiving parts of the debt by retaining ownership of Moldova's gas
pipelines.
Moldova has granted a concession to the Resources Development Co. (REDECO) to

develop the oil and gas fields of Valansk and Viktorov.
The World Bank has developed an energy project for Moldova which would include:
• an overhaul of the Chisinau No. 2 combined heat and power plant;
• repair approximately 180 leaky gas distribution points;
• gas meter installation;
• upgrade of accounting and billing systems and financial management;
• project management and implementation services.
None

45
Country Overview RUSSIA
Russia contains the world's largest reserves of natural gas with 1,748 trillion cubic feet
of proved reserves and 7,500 trillion cubic feet of potential reserves. Seventy five percent of
Russia's reserves are located in 20 giant fields in the Tyumen region. While production from
Russia's gas fields has been declining since the break up of the Soviet Union, observers expect
the production will level off and then reach a level of 22.9 Tcf by the year 2000.
Development of the new fields on the Vamal Peninsula and in the Sakha region is a
prime objective of Russia. The fields on the Vamal Peninsula have estimated reserves of 350
Tcf; the largest of these fields, Bovanenkov, has estimated reserves of 127 Tcf, and a
projected production of 3 Bcfd. Gas from the Vamal Peninsula will be shipped to Europe via
the Vamal-to-Europe pipeline which runs through Russia, Belarus, and Poland to Germany.
Gazprom controls more than 95% of Russia's gas production in the 100 largest fields,
oversees eight production associations, owns and operates Russia's S6,000-mile gas pipeline
system, and runs 26 trading houses and marketing joint ventures in 13 European countries.
The company controls one-fifth of the world's natural gas reserves. In October 1996,
. Gazprom sold 1 % of the company's stock on the international markets for US$373 million,
which will aid in financing the Vamal-to-Europe Pipeline.
Gazprom is currently involved in a massive rehabilitation of its gas trunkline system,

including pipelines and compressor stations. About half of the pipeline system is more than
30-years old and has exceeded its original design life.
• The Vamal-to-Europe pipeline is one of the biggest pipeline projects in Russia.

It will run for over 2,485 miles from the Vamal Peninsula in Siberia across
Russia through Belarus and Poland to connect with the German gas distribution
system. Three 56" pipes would run the 1,531 miles from the Vamal Peninsula
to Torzhok and will handle a throughput of 83 Bcmy. From Torzhok to Frankfurt
an der Oder, Germany, two 56" pipes will be able to carry 67 Bcmy. For part
of the route in Belarus, the pipeline will be fed through a connection with the
Northern Lights system. In November 1996, a 75-mile portion of the pipeline
running from Szamotuly, Poland, to the German border began deliveries of gas.
Initial deliveries of gas are coming not from the Vamal gas Fields, but from
already producing Siberian fields with pipeline links to the West. The 413-mile
section running from Belarus to Germany is slated to open in 1999. The 357-
mile section through Belarus and the 1, 780-mile section in Russia will be
completed on a step-by-step basis, with construction continuing into the next
century. Part of the Belarus section could be completed this year. The total
cost of this pipeline system is projected to be US$40 billion. Jjj9~Ji!Jge!ijiii~
!~
~'
• A 142-mile pipeline from Sakhalin Island to Sekasti is under consideration.
• A 2,812-mile, 56" pipeline from Vanburg through Zahavkazye to Gorky is

planned by Gazprom.

46
• A 1 ,959-mile, 56" pipeline from Gorky through Talla to Kiev, Ukraine, is planned
by Gazprom. Figure3-Pipeline3
• Chinese and Russian leaders are expected to sign an agreement for a gas
pipeline running from the Irkutsk region of Siberia through Mongolia to the
Chinese coast, and this pipeline could be extended to South Korea. An oil
pipeline running from eastern Siberia to China is already under construction.
fJJgtJ~~*~§2~~jp~IjJ1Elj}~
• Gazprom has selected a route that runs from the Russian port of Tuapse under
the Black Sea to Trabzon in Turkey, and from there gas will be delivered to
Greece, Macedonia, and Albania.
• Gasum, a joint venture between Gazprom and Neste, is proposing to double the
capacity of the Russian pipeline into Finland. This project is projected to cost
US$160 million.

47
Country Overview TURKMENISTAN
Turkmenistan is the second largest natural gas producing country of the FSU republics
and is the third largest producer in the world after Russia and Iran. Proven natural gas reserves
total nearly 100 Tcf. The largest natural gas fields are Dauletabad-Domez and Yashlar.
Turkmenistan would like to export more natural gas, and especially to export gas
without going through Russia. At present, all Turkmeni gas must use the Russia pipeline
system.
Several countries, including Azerbaijan, Uzebekistan, Ukraine, Georgia, and Kazakhstan

owe money to Turkmenistan for gas supplied. From time to time, Turkmenistan shuts off
supplies to these countries. Turkmenistan and Ukraine have agreed on a barter deal in which
Ukraine supplies Turkmenistan with flour and wheat in exchange for natural gas.
Bridas is reported to have discovered a major gas field in its offshore properties.
In October 1996, construction began on a 87-mile pipeline from Turkmenistan's

Korpedeh Field to Kurtkue in Iran. This pipeline, costing US$192 million, will be able to supply
8 Bcmy, and much of this gas will be sold to markets in the West. fitggjr~;~,',s:;~!p~l.irtii~'5
Unocal and Delta Oil Co. of Saudi Arabia have a contract to design, build, and maintain
a pipeline that would run from Turkmenistan's Dauletabad Field through Afghanistan to the Sui
gas field in Pakistan. Gazprom and TRAO Turkmenrosgaz, a joint venture between Gazprom
and the Turkmeni government, have also joined the consortium. The 900-mile pipeline will
cost US$3 billion to build, and will carry 1.5 to 2 Bcfd. Unocal and Delta have suggested
,xtending the pipeline into India, but this is just a proposal and no talks have been held on the
• I!""~' i::{o/y~;.\"..,.i:w:.,Q~.w4:'<a..."y~~I,.~':l'ft~~:
tixtenslon. !&'!9":"1~~h7~g,Et!~)2
Esso China, China National Petroleum Corp. (CNPC) and Mitsubishi are studying the
feasibility of laying a 3,700-mile pipeline from Turkmenistan across Kazakhstan and major
petroleum basins of China to China's Pacific coast. From there, the pipeline could be extended
another 1,200 miles to serve Japan. The route to Japan could possibly run through South
Korea. This pipeline is expected to carry an initial 18 Bcmy, increasing to 36 Bcmy. l7ig:t.it~
'a~''''''"Cili~'''''''~
~tW@Lf!Dt~l!Jil~{
In January 1997, it was reported that Shell proposed a pipeline to carry Turkmeni and
Iranian gas to Europe via Turkey and connecting with a pipeline from Qatar. Eventually the
pipeline could even carry Syrian and Iraqi gas. The pipelines would run to loading terminals
at Ceyhan, Turkey. Shell is reported to have asked for marketing rights to the gas in exchange
for its financial backing.
Negotiations were started in April 1995 for a pipeline that would run from Turkmenistan
through Iran to Armenia and then to Ukraine. Armenia and Ukraine will find it difficult to fund
their share of the US$1 billion price tag. There probably will be some type of barter or
exchange agreements involving projects in Iran. f49:ijt;@:~~~l~ijI!!J!ilf~

48
Country Overview UZBEKISTAN
Uzbekistan is the only FSU republic not to suffer a decline in natural gas production
after declaring its independence and is, therefore, in position to supply its Central Asian
neighbors. In 1996, Uzbekistan reached agreement with Kyrgyzstan on repayment of its
US$12 million gas debt. Uzbekistan will continue to supply gas, and Kyrgyzstan will pay its
debt in sugar and wheat. Future gas supplies will be paid for half in hard currency and half in
food stuffs.
A joint venture between Uzneftgas, Uzbekistan's national oil corporation, and Enron will
develop fields in the Surkhandarya district, estimated to hold 60 Tcf of natural gas.
Uzbektransgaz is studying the feasibility of a 57-mile, 30" pipeline to run from Bukhara
Field to Khorezm.

49
3. SOUTH AMERICA
This region, compared with the other areas of the world, contains the least volume of
natural gas reserves. Led by Venezuela, which has traditionally been known for its vast oil
resources, South America is fast awakening and joining the rest of the world with respect to
the growing importance of natural gas. Many countries have declared national pO'licies for
maximizing the benefits of their indigenous natural gas resources. Individual country's plans
for increased domestic utilization include the use of natural gas as fuel for local power plants,
as feedstock for manufacturing petrochemical products, by exportation of pipeline gas or, in
the case of Trinidad, exportation of LNG.
With the privatization of YPF and Gas del Estado, Argentina continues to expand its
domestic regional and local gas distribution networks. Argentina recently started exporting
pipeline gas from its Neuquen province to Santiago in Chile. There are also plans for additional
export pipeline gas routes to Concepcion further south and to Mejillones in northern Chile.
Exporting gas to neighboring Uruguay, Paraguay, and southern Brazil is also being
contemplated.
Bolivia, which has been exporting gas to Argentina for many years, is forging ahead
with its 'capitalization' program and among the programs highlighted is the export pipeline gas
project to Brazil. This significant project will soon start and may spur additional export gas
pipeline projects to Paraguay and Uruguay on the southeast and to Chile on the southwest.
These pipeline schemes will clearly be competing with similar projects from Argentina in the
south.
Brazil, with nearly 50% of the region's population, is the target of several regional
pipeline export projects. First among these import gas pipelines is the one from Bolivia, which
will deliver gas to Campinas where a local transmission and distribution line will transport the
gas to end users. In addition, there are several domestic trunklines planned that will be
associated with the import gas, as well as from indigenous gas supply.
Chile, with limited gas resources located it its far southern region, recently started to
import gas from Argentina. Future increase in import gas is anticipated from Argentina and
perhaps from Bolivia.
Colombia has declared a national policy for increased local gas utilization, and is in the
final stages of construction of a national transmission gas pipeline grid. There are also
discussions of possibly importing gas from neighboring Venezuela.
Peru is still in the process of restructuring its petroleum industry, and has also made
progress regarding the development of the Camisea gas field, a major gas discovery by Shell.
In addition to creating a local transmission pipeline from Camisea to Lima, there is also the
potential of exporting gas to Brazil, with a connection to the Bolivian gas system at La Paz.
In Trinidad, just off the northeast coast of Venezuela, expansion of its well-established
petrochemical industry continues, and is highlighted this year by the start of construction of
the Atlantic LNG project, a 450 MMcfd facility that will market its gas to the U.S. and Spain.
This will be the first LNG project in the western Hemisphere outside of the smaller Alaskan
LNG facility.
INGAA - Gas Pipeline Study, _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

50
Uruguay has no gas resources and is planning to import gas from neighboring
Argentina. Possibilities also exist for the importation of gas from Bolivia via Paraguay.
Venezuela dominates the region with its vast reserves of oil and natural gas, and is in
the process of re-opening its petroleum industry to the international petroleum community.
Current emphasis is heavily focused on oil projects, however, with plans to expand its
petrochemical industry, as well as to support the ongoing light and heavy oil recovery projects.
The importance of natural gas will no doubt be significantly increased in the near future.

51
Country Review ARGENTINA
With the successful privatization of its energy industries, Argentina is now the focus
of operations for many international petroleum companies. Field development and new
exploration are progressing, with particular emphasis on new gas developments. The export
of pipeline gas is now a reality as the Nova group successfully laid its GasAndes pipeline from
Mendoza to Santiago.
Argentina has a reserves base of some 2.2 billion barrels oil and 18.6 Tcf of natural
gas, with corresponding production of 715 Mbopd and 2.4 Bcfd.
There are many gas producing regions in Argentina, most important of which are the
Northwest and Neuquen Basins. Argentina imports some 200 MMcfd from Bolivia's southern
gas fields.
Nova Corporation recently completed the GasAndes export gas pipeline, covering some
288 miles from the La Mora compressor station (Mendoza, Argentina) to Santiago (Chile). This
pipeline cost some US$350 MM and presently carries 123 MMcfd. Plans are to increase
deliveries to 212 MMcfd by 2000 and 600 MMcfd by the year 2007. &j:gJ.;if~:\JfHji~ii~Un~J1~"
From the southern portion of the Neuquen Basin, YPF plans to construct a second
export gas pipeline to Chile from Loma la Lata to Concepcion. This 300-mile pipeline will
transport some 175-200 MMcfd. 1i!§ir,iB;~jjf@li2~Jg
CMS and its partners are planning an additional gas export pipeline to Chile, the Gas
Atacama pipeline from Argentina's Northwest Basin to Chile's northern cities, Mejillones,
Antofagasta and Tocopilla. This will be a 509-mile, 24" pipeline that will transport some 180
MMcfd. Nova recently withdrew from this project and CMS is having difficulties in attracting
Fr';"iiB!l:Ji~~'e·0:'eJiiie:JS
new p artners. ==g . "'_""",".""0"»~4!J?,',','"~""","'..,.
YPF and Uruguay are discussing the construction of an export gas pipeline from Buenos
Aires to Montevideo. This 150-mile, 12" line is planned to transport some 35 MMcfd, with
.
an estimated costs 0 f US$ 100 MM . ~.':'"'.'.w'·"e..F'''%ii:i''''~·'·wl.. ''':~jj'
!iJg)Jt~~kt;SHt!J)'~.LflI§'m
A similar, but larger, gas export project calls for:
• 2,020-mile pipeline from the Campo Duran area, Northwest Basin to Paraguay
and Uruguay; §jjilt~,aI~JimIil\~15.
• 336-mile pipeline and laterals from Argentina (San Jeronimo) to Brazil's

Southern states Parana, Rio Grande del Sol, and Santa Catarina. fim9t~,i:~H;
B~R~1ij~}'§

52
SOUTH AMERICA
Selected New Pipelines
Proj. A965 March 97 Checked: If! Rg. 4

In addition to the above proposed pipeline systems, reportedly there are several other
domestic reported gas pipelines in varying stages of planning, discussion and implementation.
These are:
• Bariloche to Esquel 231-mile, 4-8"

• Pergamino to Bragado 10-mile, 6-12"
• Santa Rosa to Gral. Pi co 69-mile, 8"
• Northwest Argentina Grid 1 ,522-miles, YPF

• Northern Loop Nova Corp.

53
_ ........_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Gaffney, Cline & Associates
Country Review BOLIVIA
The recapitalization of VPFB has finally moved ahead, and the proposed Bolivia-to-Brazil
pipeline has advanced further. There are also additional regional export pipeline gas being
considered to neighboring countries.
Bolivia has a reported 108 MMbo and 4.5 Tcf reserves, with production of some 29
MMbopd and 300 MMcfd. There are some concerns regarding Bolivia's ability to export the
volumes of gas currently discussed. Some of the new projects may not be realized in the near
term unless additional gas reserves are discovered.
The focus of interest in Bolivia is the proposed gas pipeline to Brazil. The overall plan
is to export gas from the Santa Cruz area to Campinas, near Sao Paulo in Brazil, a distance of
over 1,900 miles. This pipeline will be a 28-32" system and will transport some 3.7 Tcf per
year for 20 years, and its estimated cost is some US$1.8 billion. The Bolivian portion of the
pipeline, owned by Transportadora de Hidrocarburos (VPFB, Enron and Shell) will take the gas
from Santa Cruz to Corumba on the Bolivian/Brazilian border. fiJg:y,~~~~~~R!g@'i,n~j~
In addition, there are alternative gas export/import routes contemplated that could be
significant:
• Bolivia to Peru With Shell as a partner in the Bolivia/Brazil pipeline, it is

postulated that a possible outlet for Camisea gas may be
to Brazil via Bolivia. The Peru-Boivia connection would
require some 1,000 miles of pipeline over the Andes
mountain range; H!,gY,~~I!Ii1\~gj~~II@'i!~9
• Bolivia to Paraguay A gas supply agreement between Bolivia and Paraguay

governments that calls for the export of 88 MMcfd of
gas to Paraguay was signed. This calls for a 621-mile,
18" pipeline that is estimated to cost some US$300 MM;
~!9if@t4iIBijiJlii~J!
• Bolivia to Chile A competing (with a northern Argentina) pipeline to the

northern portion of Chile is also contemplated. This
project is planned by VPFB, BHP and ENAP and would
require a 700-mile pipeline from Santa Cruz to
Antofagasta.

54
_--"_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Gaffney, Cline & Associates
Country Review BRAZIL
Brazil continues to move slowly towards a more open petroleum industry and Petrobras
will operate more independently with less state support. Current reserves are on the order of
4.2 billion barrels of oil and 5.2 Tcf, with corresponding production of 695 Mbopd and 440
MMcfd.
Brazil's gas resources are located mainly in the offshore deep waters, or in the remote
Amazon basins. With increasing local gas demand, the current major development is the move
towards importing gas from Bolivia and the ancillary 'Iocal distribution lines.
The 1,900-mile, US$1.8 billion, 300 MMcfd, Bolivia-to-Brazil gas transmission pipeline
has moved ahead with the privatization of the Bolivian gas pipeline sector now owned by the
consortium of YPFB, Enron and Shell. The Brazilian pipeline sector is owned by the BTG
consortium of British Gas, Tenneco, BHP and Petrobras. This gas supply pipeline between
Bolivia and Brazil will extend from the border town of Corumba, Brazil. The first phase 700-
mile, 28" pipeline will be built to Campinas, near Sao Paulo. Petrobras recently received bids
for this phase of the pipeline construction and work is expected to start in the near future.
Phase II of the Bolivia-to-Brazil pipeline will be for the regional distribution of the gas
within Brazil and will include the following segments:
• Campinas to Guararema 250 miles, 20"

• Campinas to Curitiba 225 miles , 22" ..f,J':'\\jtiio/l~~4?J'":eiiiielnre
d;1 .... ,.~. " ........••.....•11t.•...•..... " •.•...
• Curitiba to Itaiai 100 miles, 16"
• Itaiai to Criciuma 200 miles, 14"
• Criciuma to Porto Alegre 150 miles, 14"
In addition, Petrobras has several other local gas transmission lines planned, including
• Rio de Janeiro to Belo Horizonte

• Duque de Caxias to Campos/vitoria
• Duque de Caxias to Betim
• Guamara to Fortaleza
There are also some additional regional gas transmission pipelines to bring gas to the
populated east coast of Brazil, among these proposals are:
• Bringing Amazon gas to the populated east Brazilian coast area, however, such
a massive project involves over 2,OOO-miles of pipelines through tropical forest;
• Import gas pipeline from Argentina's Northwest basin to Southeastern Brazil.
In view of the current Bolivia-to-Brazil pipeline activity, the likelihood of these projects
advancing is remote at this time.

55
Country Review CHILE
Chile has an increasing energy demand, particularly for natural gas, and its indigenous
supplies are located in the far southern Austral Basin, and transportation costs to metropolitan
areas are prohibitive. Consequently, the importation of pipeline gas from neighboring gas-rich
countries is the option adopted by Chile to meet its gas needs.
Chile has reserves of some 300 MMbo and 3.S Tcf, with corresponding production of
10 Mbopd and 410 MMcfd, a significant portion of its gas production (70%) is used to
produce Methanol at the Punto Arenas plant in southern Chile.
Nova Corporation's Gasducto Gas Andes SA recently completed the GasAndes export
gas pipeline, covering some 288 miles from the La Mora compressor station (Mendoza,
Argentina) to Santiago (Chile). This pipeline cost some US$3S0 MM and presently carries 123
MMcfd. Plans are to increase deliveries to 212 MMcfd by the year 2000 and 600 MMcfd by
the year 2007. Iiriife~~1i;'·Blflie"i1t
i!k~.=;~>~f,M!vm.-xj;;~.,,;_;,>~'"
From the southern portion of the Neuquen Basin, YPF plans to construct a second
export gas pipeline to Chile from Loma la Lata to Concepcion. This 300-mile pipeline will
transport some 17S-200 MMcfd. ~~ij§fi~~i'i~UiD
CMS and its partners are planning an additional gas export pipeline to Chile, the Gas
Atacama pipeline from Argentina's Northwest Basin to Chile's northern cities, Mejillones,
Antofagasta and Tocopilla. This will be a S09-mile, 24" pipeline that will transport some 180
MMcfd. Nova recently withdrew from this project and CMS is having difficulties in getting
new partners. In this northern portion of Chile, there are potentially competing import gas
pipelines from Bolivia and possibly Peru to the north.
In addition to these regional gas import pipelines, Chilectra Metropolitan has plans for
some S,OOO miles of various gas distribution lines to be constructed through the 1998 period.

56
Country Review COLOMBIA
Colombia has significant petroleum resources, with reserves of 3.5 billion barrels of oil
and 10 Tcf, and corresponding production of 585 Mbopd and 534 MMcfd.
Colombia's main gas resources are located on the Llanos Basin to the east, Middle
Magdalena Valley Basin in the center, and the Guajira Basin on its northern Caribbean coast.
Colombia is moving ahead with its gas utilization plans for the country, and is continuing to
expand its regional and local gas transmission lines. This plan calls for the increasing of
domestic gas consumption to 800 MMcfd by the year 2000, and is expected to cost some
US$3 billion for pipeline infrastructure, as well as compressed natural gas stations.
The gas utilization plan adopted by Colombia has activated the construction of a
significant number of gas pipeline projects. The basic plan is to connect the gas fields on the
northern Caribbean coast to the population centers on the central portions of the country
around Bogota and as far south as the Dina/Nevia/Pitalito area close to the Ecuadorean border.
The main portion of this Centragas pipeline system was recently completed by Enron and
comprised a 357-mile, 18" pipeline from Ballena to Barrancabermeja. This pipeline will have
the capacity of some 150 MMcfd and will be operated by Ecopetrol. ,5Ig~tEi::~E9~j~~U~Ei?F~,;,$
Other contracts for this major gas transmission pipeline are:
• Barrancabermeja to Puerto Serviez 93-mile, 16-20 ", Ecopetrol

• Vasconia to Mariquita 76-mile, 20", Ecopetrol
• Mariquita to Dina 173-miles, 12", Ecopetrol ,t;Ig(1r~;;:t'4~,:::,-
g'~~Jif\l~11;nf~
In addition, there are several ancillary spur lines that will connect major cities along the
main pipeline route, these pipeline projects are:
• Sebastopol to Medellin 97-mile, 12", Minminas

• Vasconia, to La Belleza -Bogota 128-mile, 22", Ecopetrol (includes part
conversion of oil-to-gas pipeline)
• Barrancabermeja to Bucaramanga 68-miles, 6-10", Minminas
Other major pipeline system contracts are:
• Mariquita to Cali (Occidente line) 214-mile, 20", TransGas de Occidente

(Trans Canada, BP, Fluor, et al) Ri9i~re;;~
S~PJB~Jj~J:f;4'!;,~
• Cusiana - Apiay 94-mile, 12", Ecopetrol
• Opon to Barrancabermeja 55-mile, 20", Amoco

57
Country Review ECUADOR
Ecuador has a reported 2.1 billion barrels of oil and 3.8 Tcf of reserves, with
corresponding production 392 Mbopd and 65 MMcfd of gas, the majority of which is flared.
Ecuador's main focus is on oil development and production.
There is no significant gas pipeline activity reported for Ecuador.

58
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Gaffney, Cline & Associates
Country Review PARAGUAY
Paraguay, located inland between Argentina, Bolivia, Uruguay, and Brazil has no
indigenous petroleum resources.
Current plans are for the importation of natural gas from its neighboring countries,
Argentina and/or Bolivia.
A gas supply agreement was signed between the Bolivia and Paraguay governments
that calls for the export of 88 MMcfd of gas to Paraguay. This calls for a 550-mile, 18"
pipeline that is estimated to cost some US$300 MM. The Paraguay government has applied
to the lOB and FONPLATA for joint funding, and tender for its construction is expected mid-
1 997 . ~i9~[~:iJi~lE'~Q§nij~l~

59
Country Review PERU
Peru's efforts to privatize its petroleum industry continues, as well new licensing
activity. Peru has substantial reserves, some 700 MMbo and 7 Tcf, with production rates of
130 Mbopd and 342 MMcfd.
Peru's gas areas are located in the interior Ukayali Basin and the coastal Talara Basin,
with the majority of the gas resources associated with the Camisea Field, found in the Ukayali
Basin. After many years of negotiations, the Shell and Mobil consortium, which discovered
Camisea, recently signed an agreement with the Peruvian government to develop this huge gas
field, with reported potential in excess of 10 Tcf and 700 MMb of condensate.
Peru's gas pipeline activity is focused on the development of the Camisea Field, and
present plans are for the construction of a 373-mile, 18" gas transmission pipeline to transport
the gas from the field to the end users in Lima. This project is estimated to cost some US$2.8
billion, as it would route the pipeline across the Andes mountain range. Shell and Mobil are
the operators of this field. This development is expected to have a capacity of some 200
MMcfd, and may take as long as seven years to complete.
An additional pipeline from the field to the city of Cuzco will be a 170-mile, 12"
pipeline. iillillillDJlIill.§
A smaller development in this basin is the Aguaytia pipeline to the town of Pucallpa,
which will require a 52-mile, 6" gas Magreb pipeline. Maple Gas is the field operator. ~i9l1e
~_!iiiliii~
In addition to the domestic market gas pipeline infrastructure discussed above, there
are also some plans for an export gas pipeline connection from Camisea to La Paz in Bolivia
where it will connect with the proposed Bolivia-to-Brazil gas pipeline system. Such a pipeline
will be approximately 500 miles, and could avoid the mountainous terrain for most of its route.
In::t~~!IIFr''''er~'~
D!:gm'egB{(i~t~~.J!lJB

60
Country Review TRINIDAD
Trinidad continues to aggressively pursue development of its natural gas resources, and
construction of the region's first LNG project has started. In addition, the country's
petrochemical industry is expanding, with plans for more ammonia and methanol plants.
Trinidad petroleum reserves are some 560 MMbo and 12 Tcf, with production at the
rate of 130 Mbopd and 800 MMcfd. Trinidad's gas resources are located in the offshore
southeast coast and north coast. Present development and production are focused on the
southeast coast resources.
The main gas pipeline construction activity is on the 112-mile, 36" and 40" gas
transmission pipeline from the offshore SSEG Field to landfall near Galeota Point, then onshore
to the LNG plant at Point Fortin. This pipeline will transport some 475 MMcfd and will be
owned by NGC (National Gas Company of Trinidad). The Atlantic LNG plant is expected to
be operational in 1999. fimj;1!~i2l0~~emgljij~1~
There are also some smaller inter-field connecting gas pipeline projects planned by field
operators, Amoco and British Gas.

61
, . - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Gaffney, Cline & Associates
TRINIDAD
Atlantic LNG and Gas Supply Pipeline
Proj. A965 March 971 Checked: Ii I Fig. 5

1--- INGAA - Gas Pipeline Study
_ ........._ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Gaffney, Cline & Associates
Country Review URUGUAY
Uruguay, located on the South American east coast between Argentina and Brazil, has
no indigenous petroleum resources.
Current plans are for the importation of natural gas from the neighboring countries,
Argentina and/or Bolivia.
YPF and Uruguay are discussing the construction of an export gas pipeline from Buenos
Aires to Montevideo. This 150-mile, 12" line is planned to transport some 35 MMcfd with an
estimated cost of US$1 00-130 MM. Bids have been called for this project. fliggIa?£flfr:{\Rip~lin~
~
It has also been reported that the proposed Bolivia-to-Paraguay gas pipeline may be
extended from Paraguay (Asuncion) to Uruguay, a distance of some 600 miles. The relative
cost of such a pipeline may be prohibitive, and thus will favor the Argentina-to-Uruguay gas
pipeline.

62
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _""""-____________ Gaffney, Cline & Associates
Country Review VENEZUELA
Venezuela has the largest petroleum resources in South America, with reserves of 64.5
billion barrels and 140 Tcf (a significant portion of which is associated gas). Production levels
in Venezuela are 2.7 MMbopd and 4.3 Bcfd.
Venezuela's main gas areas are in the Eastern Venezuela Basin (75%) (Anaco/Maturin
Area), with the remainder located in Western Venezuela (Lake Maricaibo area), and the new
offshore area resulting from recent exploration which has located potentially significant gas
reserves offshore in the northeast coast (Rio Caribe, Patao, Mejillones, and Dragon Fields).
Venezuela gas utilization is mainly oil-industry application (gas injection, refinery usage),
as well as for electricity generation (especially in Eastern Venezuela). Future consideration for
expanding the use of gas in Venezuela includes:
• Feedstock for petrochemical production at the new Jose Petrochemical

complex. This may require additional gas transmission pipeline from the gas
fields to Jose, a distance of some 100 miles; nig(Jt~~I~fB!~~'jQ~;l,;;t~
• For additional oil field and refinery use in Western Venezuela. This would
require the connection of the eastern Venezuela pipeline system with the
western Venezuela pipeline system, a distance of some 200 miles; §ggFt:i~~ll7
BUiini~~~l~
• For steam generation to enhance heavy oil production from the vast Orinoco
Heavy Oil belt. Such projects may require 100-500 miles of gas pipelines,
depending on the number of heavy oil projects implemented; 'F!giJ'f;~~~il7lRip;E.mp~
;~
• Development of future LNG projects may be possible, despite the failure of the
current Cristobal Colon LNG project that was to be located on the eastern
portion of the Paria Peninsula. The Cristobal Colon LNG project called for a
US$5.6 billion, 730 MMcfd, two-train plant. Long-term future LNG projects
may require 100-200 miles of pipeline depending on where the project(s) are
located.
In addition to the above, there has been some discussion regarding export gas from
Venezuela into Colombia. A 900-mile trans-Venezuela gas transmission pipeline was proposed
together with an additional delivery spur of 320-miles of gas pipeline. However, with the
development of the discoveries on the Caribbean coast of Colombia and the construction of
the CentraGas pipeline by Enron, the likelihood of this project moving forward in the
foreseeable future appears to be in doubt.

63
4. ASIA PACIFIC REGION OVERVIEW
The Asia Pacific region, comprising the Pacific Rim countries, the Far East and the
Indian Subcontinent, constitutes over half the world's population, with an apparent hunger for
more energy as these countries undergo tremendous programs aimed at modernizing their
respective societies as the new millennium approaches. The region contains substantial
petroleum reserves, and in spite of having a very old oil industry, it's gas industry is relatively
new. This "newness" of the natural gas industry is not to be mistaken with its sophistication,
having both export pipelines and LNG components. The Asia Pacific region natural gas usage
is only a 8.8% of it's total energy consumption, compared with 23.2% worldwide, and 27.2%
for North America. The region, as a whole, is increasing the natural gas proportion of its
energy mix, and this trend is projected to continue in the future, leading to an increasing
demand for natural gas infrastructure.
For most of these countries, particularly the more populous China and India, the
traditional fuel is coal, which accounts for some 45.7% of the energy consumed, and is a
resource which is relatively abundant and cheap. Crude oil usage is some 38.6% of all fuel
consumption, and is relatively expensive for most countries. There is a relatively small amount
of nuclear and hydroelectric fuel consumption that is limited to few countries. The relative
abundance of undeveloped natural gas resources in the region, as well as environmental
concerns, play an important role in this shift to natural gas as the fuel of choice for power
generation, as well as for industrial and residential usage in this region.
This region, reflecting the tremendous potential for gas demand and pipeline
construction, accounts for some 26% of the current and planned pipeline potential reviewed.

64
_ .........._ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Gaffney, Cline & Associates
4.1 PACIFIC RIM (INCLUDING AUSTRALIA)
The Pacific Rim, as identified in this report, comprises the Southeast Asian
countries, Australia and New Zealand. This region is characterized by its strong and
competing gas suppliers, Indonesia, Australia, Malaysia, Brunei, and now Myanmar.
The first four on this list represent 69.4% of the world's LNG production, the majority
of which is exported to the neighboring Far East countries, Japan, Taiwan, and South
Korea.
Within the Pacific Rim, there is an increasing demand for local natural gas usage
among gas resource rich countries, Australia, Indonesia, Brunei, and Malaysia, as well
as in rapidly developing Thailand. This increase in local demand has triggered the
expansion of existing local gas distribution infrastructure, as well as the introduction
of new regional and local gas transportation and distribution systems. These individual
countries are in varying stages of developing their natural gas infrastructure.
Malaysia has now completed its Peninsula Gas Utilization (PGU) project for West
Malaysia, and plans to increase the capacity of the system by adding additional pipeline
loops. The development of new discoveries in East Malaysia with the MLNG II (in
progress), and the new MLNG III project are being advanced and will be the focus of
their efforts in this coming period.
Brunei continues as the stable LNG producer, and reports of some new gas
discoveries in this small country could result in new gas pipeline activity in the near
future.
Indonesia is steadily developing its Trans-Java and Trans-Sumatra pipeline

systems, and is wrestling with the enormous development associated with the gigantic
Natuna Field gas resources. The development of Natuna could spawn significant gas
pipeline needs, including piping gas to Arun in Northern Sumatra, or to Duri in Central
Sumatra. In addition, the significant gas discoveries atWiriagar in Irian Jaya has
provided a new potential competing LNG project.
Australia is on the verge of installing a "Trans-Australia" pipeline network, as

well as the potential of importing gas from its neighbor, gas-rich Papua New Guinea.
Thailand continues to increase its gas demand, and will soon be supplied with
gas from the new gas resources discovered in the Malaysia/Thailand Joint Development
Area (MTJDA).
Neighboring Myanmar on the west would soon be exporting gas to Thailand

from its Yadana and Yetagun gas discoveries. There has also been some speculation
that Myanmar gas may also be exported west to the Indian subcontinent.
The Philippines is reportedly making some progress towards the development

of its Malampaya/Camago project.

65
Current and planned projects for these countries will go a long way towards the
development of these major national pipeline grids. As a consequence of these
individual countries developing their own natural gas pipeline infrastructure to supply
power plants, industrial and other end users, there have been increasing discussions
among these countries, particularly the ASEAN countries of Southeast Asia, for a
regional natural gas pipeline system. Such a system will connect the ASEAN countries
to a regional gas transportation system that will facilitate the gas-rich countries
exporting gas to user countries. While such a massive regional pipeline project remains
a remote possibility at this time, it is anticipated that a critical pipeline mass could be
built during the foreseeable future that would eventually lead to its realization.

66
Country Review AUSTRALIA
Regional gas pipeline activity continued apace in 1996 and is expected to continue
through 1997. It is estimated that there is potential of some 7,624 miles of gas pipeline for
this country, made up of 987 miles of current and 6,637 miles of future projects. Major
regional trunklines are the main focus of the pipeline activity, and it is expected that with a
critical mass of gas pipelines developed, a national grid linking the major supply to user areas
will be achieved in the near future.
Australia has a reported 20 Tcf of gas reserves, with annual production of 1 Tcf. Local
consumption is approximately 700 Bcf, with the remaining 300 Bcf exported as LNG. There
are some 30 sedimentary basins in Australia, but its gas resources are found in four main
areas, Offshore Northwest shelf (Canarvon/Bonaparte Basins), Offshore Bass Straits
(Gippsland/Otway Basin), Onshore Cooper/Eromanger and Amadeus Basins. In addition to
existing undeveloped gas discoveries on the Northwest shelf (Gorgon, West Tryl, Spar),
Bonaparte (Petrel, Term) and other discoveries, recent exploration has led to the discovery of
significant gas reserves in the following areas:
Canarvon Basin WAPET Chrysaor (63 MMcfd)

Barrow Sub Basin Ampolex Wonnich (27 MMcfd)
Otway Basin Caltus Skull Creek (20 MMcfd)
Future development of these fields will result in additional gas pipeline construction in
these respective areas. Additional LNG facilities are contemplated, as well as possible linkage
to the Trans-Asean pipeline system when this opportunity is realized.
Tenneco became a major gas pipeline participant with the recent acquisition of the
Pipelines Authority of South Australia (PASA), which included PASA's 488-mile, 22", 81 Bcfy
gas line from Moomba to Adelaide. Tenneco is also nearing completion of the Southwest
Queensland pipeline system, which will feature a 470-mile, 16", 43 Bcfy from the Cooper
Basin (Ballera) to Wallumbilla (connects to Roma and Brisbane), in Queensland. BIgpFE;!tj;9I,:,
a~"W"~I'N6~"~ ,
,;i~P;E,UI\l~5jL:
Another significant regional pipeline completion is the 870-mile, 14" to 16", Goldfields
Gas Pipeline, which transports gas from the offshore Northwest Shelf area (Karratha) to the
mining towns and enroute power stations, with the pipeline terminating at Kalgoorlie, located
inland and on the southern portion of Western Australia. This US$400 million project was
recently (January 1997) reported to be in operation. §j9g~~F9x~EJ:mIEmri.~J~
The following are summaries of the more significant regional gas transmission pipeline
systems presently reported for Australia:
• BHP and Canada's Westcoast Energy Inc. plan to construct a 435-mile gas
transmission pipeline from Longford in Victoria to Sydney in New South Wales,
with completion on or about late 1997; Eji:iYt~1{f?~~~Jp,~Uq~~

67
. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Gaffney, Cline & Associates
LEGEND IO. .I:~..I!~. .. ,....1000Km

o 0 - 0 - 0 - 0 - State / Territory Boundary o 500 Miles
Existing Pipelines at January 1997

....... Planned or Proposed Pipelines
• City/Town
**
Natural Gas Area
Developed Gas Area

AUSTRALIA
<D Pipeline Projects Selected New Gas Pipelines
Projo A965 March 971 Checked: ~ I Rgo 6

L--_ _ INGAA - Gas Pipeline Study
• A 83-mile, 12" link between the East Australian Pipeline at Wagga Wagga (New
South Wales) and the Gas Transmission Corporation pipeline at Albury (Victoria)
is proposed; Fig tlfeH';,RipeliryEH4
• Tenneco plans to build a 800-mile, 14" gas transmission pipeline from the
Amadeus Basin (Palm Valley) to South Australia at Port Pirie. This pipeline is
estimated to cost some US$200 million; fjgi.lt~'i~~~eipEmfie,:;5
• There are two reported pipeline projects aimed at transmitting gas to Gove in
the Gulf of Carpenteria. Magellan Petroleum Australia proposes a 375-mile line
from Darwin to Gove, while the Northern Territory Power and Water Authority
plans a 367-mile, 12" pipeline from Mataranka (where it taps into the Palm
Springs to Darwin Pipeline) to Gove; flli~t~>~~~~~i~~ljm~16
• In Queensland, Australian Gas Ught has been selected to construct a 522-mile

pipeline to transmit Cooper/Eromanga Basin gas to the mining towns around
Mount Isa; ~.wufe=~~iRi'~mioe~':'7,
';lg,4,»">'~"""'""p~~'>'_'~M'l'M!.'
• Offshore Bass Straits, a 375-mile pipeline is planned by PASA to bring Minerva

gas to onshore Melbourne and/or South Australia (Adelaide); ~J9,Yti!p~lli!R~!!i~
~
• The Northern Territory and South Australia authorities have plans to connect
Amadeus Gas at Palm Valley (Northern Territory) to Moomba (Southern
Australia). This will be a 746-mile, 16" g~s transmission line estimated to cost
some US$200 million; Ri~orem}~~Br~elinem
'M~,g,~" ">,M'" »,,,,,,,P,,",'~¥>""""M"
• Chevron/IPC plan to export gas from Papua New Guinea to Australia from their
Kutubu and Pandora Fields. Some 820 miles of pipeline will be required to
transport gas from Cape York to WillalTownsville via Mareeba; Rig~ij~I~:§J~~
Er'-r'''''''0>'*j'it\
,eAJ?Jt!m~ii$J~
• Woodside has announced a second gas pipeline project to transport Northwest

shelf gas to processing facilities at the Burrup Peninsula. This will be a 100-mile
gas pipeline. §fgijj1imi!fi~BQJiIl~2l~;A1,

68
Country Review BRUNEI
Limited pipeline activity is reported and expected for this small Sultanate. Brunei, the
first LNG producer in Southeast Asia, has reported oil reserves of 1.4 billion barrels and gas
reserves of some 14 Tcf. Production of oil and gas is 160 Mbopd and 900 MMcfd,
respectively. Brunei exports some 275 Bcfy (750 MMcfd) of gas as LNG.
Petroleum activity in Brunei is dominated by Brunei Shf:)11 Petroleum (BPS), which is

responsible for all current petroleum production activities. Recent exploration activity by BPS
and other operators have resulted in additional gas discoveries:
BPS Enggang and Selangkir (near the Iron Duke Fields), tested 16 MMcfd
Elf Maharaja lela, structure retained
Fletcher Perdana and BCS-1, tested 30 MMcfd
Future development of these discoveries will require some limited pipeline construction.
However, because of the small area involved, new pipeline mileage is not expected to be
significant.

69
_____________________________ Gaffney, Cline & Associates
Country Review CAMBODIA
Cambodia has not reported petroleum reserves and production. There is limited
petroleum activity in this country, mainly some exploration work focused on the offshore areas
in the Gulf of Thailand. No significant gas discoveries have been reported.
No significant gas pipeline activity is expected for this country in the short term. For
the longer term, it is possible the regional Trans-Asean gas pipeline may have a link to
Cambodia.

70
INDONESIA
MAIN GAS AREAS
Proj. A965 March 97 Checked: I/l Rg. 7

r - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Gaffney, Cline & Associates
O_Iiiiii::!!!!!!!Iii~_500 Km
o 300 Miles
LEGEND
Existing Pipeline
••••••••••• Planned / Proposed Pipeline
• City/Town
<D Pipeline Projects
WEST INDONESIA
Proj. A965 March 97\ Checked: If! \ Rg.8

Country Review INDONESIA
Indonesia is a major player in the Asian/Far East gas market, being the largest LNG
exporter in the world. This country has significant petroleum resources, with oil reserves of
5.2 billion barrels and gas reserves of 69 Tcf. Corresponding production is 1.5 million barrels
of oil and 6 Bcfd. Indonesia exports some 1.3 Bcfd of LNG.
As expected, petroleum activity is high for Indonesia, with numerous operators active
in the 60-plus basins of the country. Significant gas resources and new gas discoveries are
located in nine main regions of the country, of which LNG facilities are developed for two of
the areas, and discussions are being made to develop two new areas with LNG facilities.
Ejj1Jr~lili?,
• North Sumatra, Arun LNG

• South Sumatra, Bungkal (Asamera) - 36 MMcfd, Pilau Gading (Saga) - 33
MMcfd
• NW Java, Les (Arco)
• East Java, Kubu and Batur (Arco)
• East Kalimantan, Bontang LNG, Peciko (Santa Fe)
• Kutei Basin, Stupa (Total) 28 MMcfd
• Sengkang Basin, Sulawesi, Subur (Unocal)
• Natuna Area, reported 45 Tcf, proposed Natuna LNG
• Salawati/Bintuni Basins, Wiriagar (Arco), reported 8 Tcf, proposed Wiriagar LNG
Future development of these fields will result in additional gas pipeline construction in
these respective areas. In addition, Indonesia has actioned the major planned Trans Java-
Sumatra gas pipeline system which, when completed, could become part of the Regional
Trans-Asean pipeline system.
Perum Gas Negara (PGN), the state gas company, has major plans for a Trans Java-
Sumatra gas transmission system, which is now in its Stage II development phase. This
proposed pipeline will link the two main Indonesian islands and eventually will be part of the
Regional Trans Asean system. A connection between Java and South Kalimantan and
between Central Sumatra and Batam-Singapore are also contemplated. Estimates of the costs
involved for the planning and construction of these pipelines are reportedly in excess of US$1
billion. These pipelines are in varying stages of study and implementation, and financing for
them is reportedly arranged between PGN and World bank, as well as between PGN and the
ADB.
PGN planned main pipeline systems are summarized as follows:
South Sumatra to Central Sumatra

(Corridor Gas Project-Duri Field) 335 miles mgi!!I~1Q;0~eii~lJ6~~~t
Central Sumatra to Batam Island/Singapore spur 175 miles m[gri&~~1mPJJifi~~
South Sumatra (Prabamulih) to West Java (Cilegon) 300 miles iii:i~%'BiP:ilii~~
Gresik (East Java)!Yogyakata to Jakarta 335 miles mgq~I~_iP:~!iBim:

71
In addition to the PGN trunk transmission gas pipelines referenced above, there are
several major projects contemplated with involvement of PGN and private contractors.
Specifically in the private sector, much discussion has been centered around the postulated
development of the huge Natuna gas reserves. This project reportedly could include the
construction of a large-scale LNG facility, as well as pipeline sales to nearby Singapore, and
possibly to fuel the massive Duri steam injection project in Central Sumatra.
A summary of the Natuna gas pipeline projects currently contemplated (including some
in very preliminary concepts), are presented as follows:
Natuna Field to Natuna Island 140 miles, Esso Indonesia fi!g§f:~~~

S!;~P:i~f~.!i.n~~5
Natuna Area to Singapore 295 miles, Pertamina :f:jgg~e.;i~~~;b
~~p~nn~~§
Natuna Field to Thailand 932 miles, Pertamina/PTI Fig~t~j~
~m~i~lj!l~il
Natuna Area to Malaysia (Duyong area) 200 miles, Pertamina §ig!i!r~~;r
Ri"~~!etineiS
..••".Pw•.'~m"".~"'.,...
Extension of the Natuna/Duyong line across Peninsula
Malaysia-Malacca Straits to Arun (N. Sumatra) 900 miles, Pertamina, et al Eig~Jf~~~
~BjliiU1i~~
Other significant regional gas pipeline projects presently contemplated are:
Kepodang Field to Central Java (Semarang) 128 miles, Shell

Central Java to Cilacap (South Java) 280 miles, Shell J;igqf~¥~jp1ijil:ii1;9
Banjarmasin (So. Kalimantan) to Balikpapan 300 miles, Pertamina J;ifj!iwJ:!!BpQ!i~mP1:
Banjarmasin (So. Kalimantan) to Gresik 500 miles, Pertamina fi~g~'W{J~~I!iif~\1:.2
Kampong Baru area to Ujung Pandang 100 miles, BP fEigjJ~tQf~1fl~~1if!~~t~
East Java additional field development/connections 100 miles, Arco mgU(~fJ9Rij]8liMi~~
Wiriagar/Mogoi Deep developments, Irian Jaya 200 miles, Arco, BG, Statoil
Intra-field developments - East Kalimantan (Kutei Basin) areas

Intra-field development - South Sumatra and Northwest Java areas

72
Country Review MALAYSIA
The development and utilization of its natural gas resources has been a priority with the
Malaysian authorities. The Peninsula Gas Utilization project (PGU) is well into Stage III and
connects gas supply to users across the length and width of the peninsula, with an overall
capacity of some 2 Bcfd. In addition, the second LNG expansion of its Bintulu facilities, the
MLNG II project, is progressing and a third LNG project (MLNG III) is also contemplated.
Malaysia has substantial hydrocarbon resources, and its reserves of oil and gas are 4.3
billion barrels and 68 Tcf, respectively, with corresponding production of 682 Mbopd and 2.9
Bcfd. Approximately 272 Bcfy of gas are exported as LNG.
Malaysian gas resources are found in three main areas:
Offshore Peninsula Malaysia

Petronas Duyong/Sotong Fields - gas supply to PGU
Petronas Berganding Deep 131 MMcfd (total)
Esso Lawit (1.7 T cf) to be developed and piped
onshore
JDA CTOC Bulan (36 MMcfd), Cakerwala East (22 MMcfd),

Suriya (56 MMcfd)
Offshore Sarawak Shell fields - E and F - 13 Tcf - MLNG I

Shell fields - M and B - 9 Tcf - MLNG II
Oxy fields - Jintan/Sedari - 6 Tcf - MLNG III
Offshore Sabah Shell field, Kinabalu, 2.1 Tcf, future

consideration
In West Malaysia, there are two main pipeline projects:
• The major Peninsula Gas Utilization (PGU) project is now into Stage III with
pipeline connection from Klang in Selangor State to Kangar in Perlis State. This
completes the connection from the gas supply on the east coast at Kertih and
will have the capacity of some 2 Bcfd to commercial and residential users along
the route. The PGU I and II comprised some 530 miles of 36" pipeline and PGU
III comprises some 340 miles. With the completion of this initial PGU system,
plans for secondary loops along sections of this massive system call for
connections from Kertih to Segamat and then on to Meru in Klang, a total of
some 530 miles of pipeline; ~i9ifil~~ii~lil.~
• The development of Esso's offshore Lawit gas discovery calls for a 200-mile,
30" gas transmission line to bring the gas to shore. JiiimiJl.l'iR~lji~1i

73
PGU- Stage I
PGU- Stage II
PGU- Stage III
·.... Offshore Pipeline
Offshore Pipeline Under Construction

e Gas Field
e Oil / Gas Field
I!I Existing Power Station
CJ Future / Proposed Power Station
o Gas Processing Plants
• City/Town NOTE: WEST MALAYSIA

State Boundary Location of Offshore Lines I Fields
Not to Scale
Maritime Boundary
CD Pipeline Projects
Proj. A965 March 97 Checked: 1ft. Fig. 9

In addition to the above projects, there are two other projects that may be realized in
this area:
• E.W. Bridge Corp. and Chiyoda are planning a 120-mile gas transmission from
the Penang area in west coast of West Malaysia to Songkhla on the east coast
of Thailand; fiig~g~e,,4~~:('ejp~lill~:,':3
• From the offshore Joint Development Area (JDA) between Malaysia and
Thailand, the development of the recent gas discoveries from this area will most
likely be connected to the nearby (estimated 50 miles) Bongkot facility in
Thailand for sales to Thai end-users; fim!1ij~~tI14P:~lim~a
• A proposal for transporting Natuna gas via West Malaysia to Arun in Indonesia
is also being discussed. ~~iill~~~T~ip~n!:l~~~
In East Malaysia, there are three main potential pipeline projects:
• Bintulu MLNG II project is on the way and will connect an estimated 150-mile
gas transmission line from the fields to the onshore processing facility;
• Should the MLNG III project mature and proceed, some 200 miles of gas
transmission pipelines will be required to transport the offshore gas to the
Bintulu processing facilities;
• Should the Sabah gas discoveries be developed, intra-field connection will

require some 1 50 miles of gas transmission pipelines.

74
Country Review MYANMAR
Myanmar will soon be a regional gas exporter as Total and Texaco develop and market
their significant gas reserves from the Andaman Sea. Several major gas transmission lines
from these discoveries to both onshore Myanmar and Thailand are currently planned.
Myanmar has reserves of some 145 MMbo and 10 Tcf, with corresponding production
of 16 MMbopd and 160 MMcfd. All production at present is from onshore fields operated by
the state oil company, Myanmar Oil and Gas Enterprises (MaGE).
Offshore, in the Gulf of Martaban/Andaman Sea area, Total and Texaco have made
significant gas discoveries, development plans for which are in progress as are gas export
transmission lines to Rangoon (for domestic consumption) and to Thailand for export. These
discoveries are:
Total: Yadana reported 5.7 Tcf to be developed for domestic and export
3CA reported 1.7 Tcf, may be developed with Yadana
Sein tested 33 MMcfd, near Yadana
Bandamya tested 32 MMcfd, near Yadana
Texaco: Yetagun reported 1.5 T cf, to be developed for export to Thailand
Reported gas transmission projects for Myanmar are focused on the Gulf of Martabanl
Andaman Sea discoveries to be developed in the near future. These pipeline projects are
reported as:
• Yadana Field east to Heinze Island and onshore Zadi, then to Bong I Tong on the
Thai border. This 21S-mile, 36" pipeline will transport some 240 MMcfd and
Total and MaGE have initiated this development. From Bong I Tong, PTT of
Thailand has started to build a 162-mile connecting pipeline to transport the gas
to the power plant at Pilok, near Ratburi; l2igy[ij!Jl1QJifBimeli§~Jll'
• Also from Yadana Field is a 162-mile, 18" gas transmission line to Yangoon,
near Rangoon for domestic usage of the gas; fiigllt~~'I1~~~~Bi~i[OI!~:~g
• There are two options considered for the export of the Texaco Yetagun gas;
A 224-mile pipeline northeast to connect with the Yadana-Ratburi line at

Heinze Island/Zadi; f£!gMr'~i71"e!pe,lmj(j~
A 225-mile pipeline southeast to Ranong on the Thailand west coast,

then connected to a 75-mile onshore line to end-users in this area.
fiiiytJj;'~i!gjeJjAil:

75
, - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Gaffney, Cline & Associates
To Ranong
on Thailand
LEGEND
• City/Town o 100 Miles
e Gas Field
-¢- Gas Discovery
Existing Pipeline
MYANMAR
Planned Pipeline
Proposed Pipeline
Maritime Boundary
Pipeline Projects Proj. A96S March 97 Checked: II! Rg. 10
1--__ INGAA - Gas Pipeline Study
Country Review NEW ZEALAND
New Zealand recently modified its petroleum legislation and has issued new exploration
permits. Current activity is centered on the Kupe and Maui Fields' production. Reserves of
the country are 134 MMbo and 2.3 Tcf, with corresponding production of 33 Mbopd and 475
MMcfd.
There are some reported plans for gas transmission pipelines, however, they are
generally small local systems, or there is some uncertainty as to their project details.
Reported pipeline projects include:
• Ministry of Energy 145-mile, 12-20" gas transmission pipeline from Huntly to

the Marsden power station near Whangare;
• Southgas Resources is planning a 62-mile system in the Invercargill area and a

112-mile system in the Dunedin area;
• Shell/BP/Todd have plans for a 276-mile gas line from the offshore Maui B
platform to Taranaki.

76
Country Review PAPUA NEW GUINEA
There is much discussion regarding the development of the natural gas potential of the
country. Reserves are some 645 MMbo and 14.6 Tcf, with production being 100 MMbopd
and only 9.4 MMcfd. The oil is produced from its inland fields and piped to the Kumul
Terminal in the Gulf of Papua. However, there are several fields both onshore and offshore
with significant gas reserves yet to be developed.
These undeveloped gas discoveries include:
Onshore Hides, SE Hedinia, Lehi, Barikewan, Kuru, Bwata

Offshore Uramu, Pasca, Pandora
In addition, new discoveries reported are:
Chevron Moran (4.8 MMcfd - 1,900 BOPO); Paua

Oil Search Makas
There has been much discussion regarding the alternative development of options for
the country's natural gas resources. LNG is the prime option, however, because of the inland
location of a significant portion of the reserves, significant gas transmission pipeline will be
required to transport gas to the coastal LNG site wherever it is eventually located.
The various LNG options include:
•
•
•
In all cases, severe terrain difficulties are expected due to the rugged topography and
environment.
Perhaps the most logical site for the proposed LNG will be on the south at Kerema,
following the existing crude line and which has best option of connecting with the offshore
Gulf of Papua discoveries.
In addition to these LNG based pipelines, IPC proposed a direct pipeline gas export to
Australia with a 200-mile pipeline from the Pandora Field to the Cape York Peninsula. It is also
reported that Chevron may join IPC and export gas to Australia. Should this be the case, the
gas pipeline from the interior highlands will follow the existing oil pipeline route to Kerema, and
will require an additional 100 miles of offshore gas pipeline to connect with the Pandora
f aCITf
I les. ft"""~"ce""11Cr!.'O%'i'~'l"-A~6
:"i19Y1ig10~=1llij%;,'k~dl!@,gJ~!,~.

77
. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Gaffney, Cline & Associates
o 100 200Km
o 150 Miles
LEGEND
• TownlCity
• Gas Field
~ Gas Discovery
. . Gas I Condensate Discovery
e Oil I Gas Field
- - Maritime Boundary PAPUA NEW GUINEA
•••••• Proposed Pipeline Possible New Gas Pipelines
Proj. A9a5 March 971 Checked: If!. I Rg.11
Country Review PHILIPPINES
The Philippines has very little significant activity, with energy demand growing as
population expands. Reserves are on the order of 300 MMbo and 5 Tcf, with production on
the order of 3 Mbopd, with no gas.
The potential development by Shell of the Malampaya and Cam ago gas discovery is
presently stalled due to price negotiations.
The development of the Malampaya-Camago will require a 310-mile pipeline from the
field to Batangas located on the southern portion of Luzon island. This pipeline will transport
some 200 MMcfd, and plans are for it to be operational by 2000 or 2002. fi.gql'~~11rg}\::t;flip~li[~
I .

78
, - - - - - - - - - - - - - - - - - - - - - - - - - - - - Gaffney, Cline & Associates
o 180
200 390 Km
o 100 200 Miles
.•..••-... Proposed Pipeline
PHILIPPINES
Possible New Gas Pipeline
' - - - - INGAA - Gas Pipeline Study

Country Review THAILAND
Thailand has been undergoing a period of high activity, both from its own exploration
activities that have resulted in several significant gas discoveries, but also as a potential
importer of gas from the neighboring countries, Myanmar on the west and the JDA to the
south. There has also been some discussion regarding possible import of gas from Vietnam.
Thailand reserves are about 275 MMbo and 5.9 Tcf, with production on the order of
51 Mbopd and 1 Bcfd. The most significant explora~ion activity is focused on the Gulf of
Thailand (Pattani Trough).
The more notable new gas discoveries are:
Total Ton Koon (near Bongkot)

Unocal Ubon, Pailin, Trat (near Bongkot)
Maersk Benchamas, Pakakong (25 MMcfd)
Pogo Tantawan
In addition, from the JDA with Malaysia, there have been several gas discoveries:
CTOC Bulan (36 MMcfd), Cakerwala East (22 MMcfd), Suriya (56 MMcfd)
In view of the increasing gas demand and new discoveries, there are many plans for
new gas pipelines in the country, both from local development, as well as from import sources.
The more significant of these PTT gas transmission pipelines are summarized as
follows:
• Bongkot to Erawan, 110 miles, part of a 350 MMcfd upgrading of capacity;

"'" ,. ""fe,")
~"~''''''·''~'9if\'i'!r''''_·r'''''''I·
El91.;m~10'1~~,~A,p';~,!!:)~~·
• Erawan to Rayong, a proposed new parallel line to handle additional gas from
the Pattani Trough area in the Gulf of Thailand. This pipeline will be on the
order of 256-mile, 36" and will increase capacity from 850-1,450 MMcfd at a
cost of US$700 MM. fiigi:it~J,;1i~;;S[eJp~lig~e,~~
Other PTT Thailand gas pipeline proposal include:
• Bong I Tong to Ratburi, 161 miles onshore, connecting the import gas pipeline
from Myanmar Yadana-Yetegan Gulf of Martaban Fields. ~i,g~1'j\(~1}$~r!aje~U~
~

79
r - - - - - - - - - - - - - - - - - - - - - - - - - - - - Gaffney, Cline & Associates
- Existing Pipeline
•••• Planned Pipeline
Maritime Boundary or
'l" Thailand Boundary Claim
'"' Cement Plant
e Gas-Based Power Plant
t7: Proposed Power Plant
e THAILAND
*
•
Gas Reid
Gas Discovery
City/Town
Proj. A96S March 97 Checked: '2 Rg. 13

- _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Gaffney, Cline & Associates
4.2 FAR EAST (INCLUDING CHINA)
This region contains the high-energy users of the eastern hemisphere, and
includes Japan, South Korea, and Taiwan, countries that collectively consume 76.5%
of the world's LNG supply. Most LNG imports are from Indonesia, Malaysia, Brunei,
and Australia, with little from Abu Dhabi and Algeria. Future potential for the
importation of pipeline gas from East Russia, Central Asia, and Sakhalin could seriously
compete with LNG imports in the future, however, such regional mega-gas projects are
realistically only in the distant future.
China, with its vast population, is becoming an important gas user, and although
it has significant natural gas resources both inland and offshore, it may become a gas
importer if demand exceeds indigenous supply. In any event, because of the size of the
country and the location of the gas sources relative to the populous areas along the
China coastal areas, Guangzhou, Shanghai, and Beijing, significant gas pipeline projects
could be developed in the future. Hong Kong will be returned to the Peoples Republic
of China in July, and the economic impact of this move is uncertain, although the
status-quo is expected to be retained. The successful delivery of Yacheng gas to Hong
Kong was achieved. Much of China's current gas pipeline activity is focused on
transporting Ordos Basin gas to the surrounding population centers, as well as the
development of the offshore Ping Ho Field in the East China Basin. On a more long-
term basis, there are numerous reports of potential pipeline projects for import gas from
East Russia and/or Central Asia, and Turkmenistan. Such mega projects will have to
overcome major economic and financial hurdles, and expectations are that realization
of these projects would not be until sometime in the next millennium.
Japan, the largest importer of LNG, continues to increase its usage of natural
gas. Discussions regarding the importation of Sakhalin gas continues, as well as the
Trans-Japan system required to distribute this gas within the country. Current gas
imports are based in several LNG receiving terminals associated with local distribution
grids. Pipeline gas would require major trunklines to transport and distribute the
pipeline gas if this project proceeds. It is anticipated that pipeline construction within
Japan would be very expensive due to the dense population and high land cost.
Alternative approaches may have to be determined to resolve these problems. Import
gas from East Russia and/or Central Asia via China also are possible projects.
South Korea continues to expand its gas utilization with the completion of its
local gas distribution system. LNG usage will continue to increase, and Korea would
also be one of the countries that could receive export gas from East Russia or Central
Asia via China, or from Sakhalin gas via Japan.
Taiwan, like the other countries of this region, is also continuing to increase its
usage of LNG and has plans for a major gas transmission line connecting the south to
the north of the island via an offshore subsea pipeline.
Vietnam has recently completed the initial development for its offshore oil fields,
and the emphasis will now be focused on expanding this infrastructure to include other
fields, including the natural gas discoveries. Current plans are aimed at the local
market and/or possibly for export to Thailand.

80
Country Review CHINA
China, with its huge population and expansive territory, provides significant but,
perhaps difficult, opportunities with respect to gas pipeline infrastructure development. China
has some 26 prospective basins in which significant gas resources have been identified in ten
basins, four of which are offshore. China reserves are reported as 24 billion barrels of oil and
59 Tcf, with corresponding production of 2.9 MMbopd and 1.6 Bcfd.
China's main onshore gas areas with significant discoveries and fields are:
Sichuan Basin Weiyuan gas fields, a developed gas region with local
infrastructure
Ordos Basin Developing gas area
Oaidam Basin Sebei gas fields, a developed gas area
Tarim Basin Kosastok gas field, potential gas in area
Junggar Basin Hu gas discovery (27 MMcfd), a new gas area
Songliao Basin Daqing Field, a potential gas area
China's main offshore gas areas with significant discoveries and fields are:
Oiongdongnan Basin Arco's Yacheng Field, gas sales to Hong Kong started
Yinggehai Basin CNOOC's Dongfang, Ledong, Lingtou gas discoveries
East China Sea CNOOC Ping Hu, Chunxaio gas discoveries
Bohai Gulf Jinzhou gas field
The 438-mile pipeline (300 MMcfd) from Yacheng to Hong Kong is now operational,
as well as the 62-mile line from the field to Hainan Island. fii"gg.~~i1~ij:eii~lil"il~t~~
Reportedly, there are numerous planned pipelines both on and offshore, as well as
reported major import gas pipelines into China.
The following summarizes the main potential pipeline projects reported:
• Shanghai Petroleum Corp. 249-miles, 14" offshore gas transmission from the Ping
Hu Field to Shanghai; fi4,g~~~;i~~~~lejp~lipe~
• CNPC
Ordos Basin to:
Xian 305-mile, 16" gas pipeline, 25 MMcfd, US$300 MM FJg~Q);\1t4i22fflpeliM13

Beijing 559-mile, 26" gas pipeline, 100 MMcfd, US$350 MM !iigi,1r~11'l~~'Rlp~!ifi~~'4
Yinchun 204-mile, 16" gas pipeline, 100 MMcfd, US$500 MM FJgi.lrEi;~42:eip~IiiJ9\5
Hohot 372-mile, 16" gas pipeline fijgUr#;I~~~PJljM!:~
• Connection between Junggar Basin and Turpan Basin, 194-mile, 18", 155
MMcfd. §gJlr~t~t;ItmiE~lj1i~~rz

81
, - - - - - - - - - - - - - - - - - - - - - - - - - - - - Gaffney, Cline & Associates
0.
o
....tpOOKm
500 Miles
LEGEND
J.. Town I City
10( GasArea
- Existing Pipeline
- - Regional Planned Pipeline
•••••• Planned Pipeline
CHINA
Possible New Gas Pipelines
Proj. A96S March 971 Checked: If! I Fig. 14

In addition to the above, hypothetical projects for importing gas from Russia in the
north (Yakutsk) Figure14'~PipeliJ"le'8 and/or from KazakhstanlTurkmenistan from the east
have also been reported Figure:1G4' .. ;PipeliI1E19. Such a project will require an estimated 3,750
miles of pipeline. However, such a project will be subject to tremendous political as well as
economic risks between the countries involved.
An alternative consideration to supply China with gas is possibly from LNG imports.
The nearby Southeas"t Asia region is well established as an LNG exporter, and there appears
to be gas source to supply possible gas demands from China.

82
Country Review JAPAN
Japan has very little petroleum resources, with reserves on the order of 55 MMbo and
800 Bcf, corresponding production is 15 Mbopd and 156 MMcfd. Japan imports over 2 Tcfy
(44 MM tons of LNG) per year, mainly from Indonesia, Malaysia and Australia.
Pipeline activities considered in Japan are for local domestic distribution and for longer
term import of pipeline gas, the reality of which is very uncertain at this time due to political
risk and cost considerations. Within the Japanese territory, pipeline costs are estimated to be
extremely expensive (US$15 million per mile) due to high land costs, dense population and
highly built-up areas, resulting in very slow progress for construction.
Domestic pipeline project considered:
• Connecting Tokyo and Osaka, 300-mile , 36" gas pipeline. f,igt;lr~,~~~Ft!€e!p~liii'e!;\!
Import pipeline options considered, which would involve 1 ,000 plus miles and be super
costly:
• Pipeline gas from Sakhalin gas areas, this will include some 1,700 miles of
pipeline, including gas transmission across Japan; !iJj~~~~j1f~~fl;ftip,~I1!iljl~
• Pipeline gas imports from East Russia through China and Korea.R!9~t~ll~~*
er*iJiiP'
b~Jl,,"~~,~~3~

83
~-------------------------- Gaffney, Cline & Associates
LEGEND
- Existing Pipeline
- • • Possible Pipeline
•••• Proposed Pipeline
e Gas Reid
• City
<D Pipeline Projects JAPAN
Possible New Gas Pipelines
Proj. A965 March 971 Checked: I/l I Rg. 15

1.-.-- INGAA - Gas Pipeline Study
Country Review KOREA (South)
South Korea has no petroleum resources, and exploration efforts so far have not found
commercial hydrocarbons. Korea currently imports some 300 Bcfy of LNG and prospects for
increasing LNG imports are high.
In view of Korea's increasing usage of natural gas, domestic distribution systems are
being built to transport gas to end users across the country. Several hundred miles of gas
transmission pipelines have been built over the recent past and only a small segment remains
to be completed. In addition, there are pipeline import gas possibilities (together with Japan)
of gas from East Russia and/or the Sakhalin area.
Domestic Pipeline project being considered:
Import pipeline options considered, which would involve 1,000 plus miles and be very
costly:
• Pipeline gas imports from East Russia through China; §;i~r~"Jt11§1~Bli~liB~~i
• Pipeline gas from Sakhalin gas area, from Japan. l!{g~~tr~liJ:&!i~J~~

84
LEGEND
- Existing Pipeline
Planned Pipelines:
•••• Youngnam Trunkline
....
........ Honam Trunkline
.... Nambu Trunkline

Other Pipelines
•••• Planned Pipeline
LNG Recieving Terminal
City SOUTH KOREA
Pipeline Projects New Gas Pipelines
Proj. A965 March 97 Checked: Ii! Rg.16

Country Review TAIWAN
Taiwan has very little petroleum resources, and exploration efforts so far have found
some gas resources and little oil. Current production is approximately 1,200 BOPD and 82
MMcfd. Gas reserves reported on the order of 2.4 Tcf. Taiwan currently imports some 120
Bcfy of LNG and prospects for increasing LNG imports are high.
With increasing LNG imports, Taiwan recently upgraded its receiving terminal at Yung-
an, on the southwest side of the island, and have in operation an onshore gas transmission
pipeline north to Taipei. Current planning contemplates either the building of a LNG receiving
facility on the north side of the island, and/or the construction of a new second gas pipeline
to transport the increased gas from Yung-an to users in the northern portion of the island. This
proposed pipeline will be constructed offshore and will parallel the coastline.
Domestic pipeline project being considered:
• CPCITenneco Yung-an to North Taiwan 190-mile, 24" offshore gas pipeline.

Iifjitin"!!1~~1ilii~Ufjl1~~t

85
,...-_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Gaffney. Cline & Associates
LEGEND o 50Km
• City o 50 Miles
• Power Plant
til LNG Recieving Terminal
- Existing Pipelines
•••••• Proposed Pipelines TAIWAN
CD Pipeline Projects Main Gas Pipelines
Proj. A965 March 97 Checked: C/l Fig. 17
1--- INGAA - Gas Pipeline Study

Country Review VIETNAM
Activity is mainly offshore, with several significant gas discoveries being considered
for development. Reserves are on the order of 663 MMbo and 4 Tcf, with production being
some 173 Mbopd and 136 MMcfd.
Among the several gas discoveries that are undeveloped are:
• Can.Oxy Hai Au (24 MMcfd)

• MJC Thanh Long (Blue Dragon) (22 MMcfd)
• PEDCO Rong Doi Tay (33 MMcfd)
• BP Lay Do and Lay Tay
Recent commission of the oil pipeline from the Bach Ho Field to Vung Tau is now
operational. Only one major gas pipeline is presently contemplated, which will transport gas
from BP's Lay Tay and Lay Do and other nearby gas discoveries. This gas transmission
pipeline will be some 230 miles to onshore, ultimately to Ho Chi Minh City and is expected to
be completed by 1998. fi[tji~1tI§~i~Jeip@IJijgs;1
An old proposal to export gas to Thailand that is under study would require a 435-mile
pipeline to connect the Vietnam gas fields with the Erawan facilities in Thailand. FJgWte,jft1~§"~
Rr7BIi~l:i1~
.A,J"""'._'~~{',,'0'0M

86
. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Gaffney, Cline & Associates
-.....
LEGEND
e
Existing Pipeline
Planned Pipeline
O
o
..
......~==~ illI!!!!1~50Km
100~~
Power Station
0 Gas Processing Plant
e Gas Field
fa Oil I Gas Field
~ Oil I Gas Discovery

Gas Discovery
VIETNAM
~ New Gas Pipelines
•<D
Oil Discovery
City
Pipeline Proj~ts Proj. A965 March 97 Checked: 1/2 Rg.18

4.3 INDIAN SUBCONTINENT REVIEW
The Indian subcontinent is being awakened to the usage of natural gas, and
there is much discussion regarding potential gas importation projects from regional gas-
rich areas such as the Middle East, Central Asia and, to a lesser extent, Southeast Asia.
This highly populated region has the potential to become a major gas consumer that
could rival the volumes achieved in the Far East.
Prominent among the major regional pipeline gas projects are gas imports to
Pakistan/India from Oman, Qatar, Yemen, Iran, and Turkmenistan. Recent reports
suggest that the Oman and Yemen pipeline projects have had major setbacks and are
for all intents indefinitely postponed. Gas pipeline projects from Iran, Turkmenistan,
and Qatar remain on the drawing board. Alternative consideration for importing LNG
are also being considered, and India has made some progress in this direction. LNG
supply will most likely be from the Middle East, Qatar and Abu Dhabi.
Bangladesh continues to improve and expand its local gas distribution system,
and there is a possibility that an export pipeline to East India may be achieved in the
near future.
India, the largest country in this region with almost a billion people, is moving
towards increased usage of natural gas. Current developments are focused on the
Bombay High area, and future consideration is being made for regional transmission and
distribution gas pipelines. India could become the first country in this region to build
an LNG receiving terminal.
Pakistan continues to increase its use of the gas supply from the Lower Indus
Basin. However, discussions are also continuing with regard to the importation of gas
from the Middle East and Central Asia. These regional pipeline projects are considered
in association with extending the pipeline to also deliver gas to India.

87
Country Review BANGLADESH
Bangladesh development of its gas resources continues to be slow. Production is

around 1 Bcfd with 1 Mbd of condensate. Reserves are reported to be on the order of 10 Tcf
and 58 MMb condensate.
Some onshore gas discoveries, both inland on the Surma sub-basin and on the coastal
Chittagong sub basin, remain to be developed. Carin's Kutubdia offshore gas discovery is also
undeveloped.
There is a well established gas grid onshore Bangladesh that connects most of the gas
fields along the route. Few additional connections, plus addition of undeveloped fields, will
require some new gas pipeline construction, the overall length of these lines is not expected
to be significant. Longer-term consideration is for expansion of the gas grid to the west and
northwest, which will require an additional 400 miles of pipeline.
Domestic pipeline project being considered:
• Offshore Kutubdia to Chittagong, estimated 50 miles; ~gJ!lr~I!.~~(~r~~~lIijJ::g
• Northwest expansion of gas grid, estimate 400 miles.

88
KEY TO FIELDS
1. CHHATAK
2. JALALABAD
3. SYLHET
4. KAILASTILA
5. BEANIBAZAR
6. FENCHUGANJ
7. RASHIDPUR
8. HABIGANJ
9. TITAS
10. BELABO
11. KAMTA
12. MEGHNA
13. BAKHRABAD
14. BEGUMANJ
15. FENI
16. SEMUTANG
17. KUTUBDIA
LEGEND
t• Town
---- Field
Exisiting
Pipeline
Planned
Pipeline
r- National
Border
0 .~~~~5!0~"&r~:l100km
. BANGLADESH
o 50 Miles Existing and New Gas Pipeline

'----- INGAA - Gas Pipeline Study
Country Review INDIA
India continues striving to attract foreign companies to assist in the development of the
country's petroleum resources, however, development of its gas resources continues to be
slow. Production is around 700 Mbopd and 1.7 Bcfd. Reserves are reported to be on the
order of 15.8 billion barrels of oil and 25 Tcf.
There are 26 basinal areas in India, with petroleum resources established in only five
areas: Bombay, Cambay, Krishna-Godavari, Cauvery Basins and the Assam/Arakan/Tripura
Basins. The most significant is the Bombay High area.
Recent gas discoveries include the W016, B27, C37, and B15 gas fields found in the
Bombay High area and the Borhapjan gas discovery on the Krishna-Godavari Basin area.
There has been much discussion trying to establish a national grid within India,
however, the realization of this concept is not likely to occur in the near future. Instead,
several independent local gas grids, centered around the local gas supply areas, constitute the
gas pipeline infrastructure of the country, and which will expand as supply and more end-users
increase. Current pipeline activities are focused on the continued development of the Bombay
High Fields, with several other minor local grid expansion gas pipelines also planned.
Bombay High pipeline project being considered:
• ONGC Bombay High to Herera Field 124-mile, 20/30" gas pipeline

• ONGC Bassein Field to Hazira terminal 150-mile, 42" gas pipeline
There has also been various discussions regarding the importation of pipeline gas from
available regional gas suppliers. The realization of these projects are not expected for the
short or intermediate term as much discussion regarding financing and political risk
assessments are made. Among these plans for gas imports are from:
• Oman via Arabian sea subsea pipeline approx. 1,050 miles, 24"; mgpR!»~'Rip~!InEilt
• Qatar (North Field) via Iran approx. 2,000 miles; fil1iQ!,.,~~)!):ejil1l1Pf;»
• Iran (South Pars) via subsea pipeline approx. 1,500 miles; mmifi;fgJliiJi!jR@1r~~
• Turkmenistan over land pipeline approx. 1,200 miles - Unocal; §'gprA:~QP~jP~!!i:!~.
• Bangladesh, via overland pipeline few-to-many miles depending on location
• Myanmar, via subsea pipeline Approximately 1 ,000 miles
As an alternative to these large-scale regional trunklines, there have also been

discussions regarding LNG imports from similar regional LNG sources - Abu Dhabi, Oman, Iran
and Yemen.
In the event of LNG imports, the requirement for India will be the establishment of LNG
receiving facilities and a local gas distribution network. Like the regional pipeline projects, the
LNG import issue is a long-term project. An overall analysis suggests that, barring adverse
economics, the LNG option may be more practical and realistic.

89
, - - - - - - - - - - - - - - - - - - - - - - - - - - - Gaffney, Cline & Associates
APPROXIMATE SCALE
.0• •~!!!!:20=0:!iiiiiiiiiiiiii~40!0!!!~.~600 Miles Routes

o 200 400 600 800 1000km 1 Oman - India Deep Water
2 Qatarllran - India Overland
3 Qatarllran - India Shallow Water
4 Turkmenistan - India Overland
LEGEND
-•.•.. Existing Pipelines
Possible Pipelines
•
CD
Major Gas Field
Pipeline Projects
INDIA
Possible Gas Import Pipeline
Proj. A965 March 97 Checked: Vl Fig. 20
' - - - - INGAA - Gas Pipeline Study

- - -_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Gaffney, Cline & Associates
Country Review PAKISTAN
Pakistan petroleum activity continues mainly onshore, and several new gas discoveries
are reported. Gas demand is increasing and current projections are that Pakistan could become
a gas importer in the future. Production is about 57 Mbopd and 1.8 Bcfd. Reserves are
reported to be on the order of 174 MMb of oil and 27 Tcf.
There are two main basins in Pakistan, the Indus and the Baluchistan Basins, with
petroleum resources established mainly in the Indus Basin. The Indus Basin itself is subdivided
into four sub-basins as follows:
Kohat Northeast portion of Upper Indus Basin, a mainly oil producing area;
Potwar Main portion of the Upper Indus Basin, a mainly oil producing area;
Sulaiman Upper portion of the Lower Indus Basin is the main gas producing area;
Kirthar Lower portion of Lower Indus Basin is an oil and gas producing area.
Union Texas is the major foreign operator in Pakistan and together with OGDC (state
oil company) operates most of the oil and gas fields in Pakistan.
Recent gas discoveries, all onshore, will most likely be tied to the existing infrastructure
include:
OGDC Chak 5, Dim South (9.4 MMcfd), Buzdar, Panairi

UTP Zaur, Makhdumper, Khorewah
Tullow Charo, Chachar
OMV Miano, Kunddahu
Pakistan already has a developed onshore gas transmission system which links the main
producing areas to the major end-users and cities. Several expansion works are expected to
continue, as well as incorporation of new gas fields into the system.
Significant reported pipeline systems, including potential regional import gas pipelines,
are summarized as follows:
• Sui Northern Gas Pipelines
• Various
Regional pipeline gas import routes, the Pakistan and India include:
• Qatar to Pakistan
• Oman to Pakistan
• Turkmenistan to Pakistan
• Iran to Pakistan

90
Country Review IRAN
Iran has an abundance of petroleum resources, with reserves of 88 billion barrels and
742 Tcf, second only to Russia in gas reserves. Iran's production is some 3.6 MMbopd and
6.4 Bcfd.
Iran's gas resources are located mainly along it's southwest coastal and Arabian Gulf
offshore region. Iran does not export any gas, however, within recent years, there have been
discussions regarding the exportation of gas from Iran, as well as providing right-of-way for
export gas from neighboring FSU states (Turkmenistan). It is anticipated that in the future
natural gas will playa more significant role in Iran's petroleum export portfolio.
It should be noted that Iran is still the subject of U.S. sanctions and, as such, financing
or participation in Iranian projects has been difficult to achieve.
• NIGC Dalan to Marun Fields' 212-mile, 30", a planned gas pipeline for a
major gas injection project in the Marun oil field. First phase is
expected to cost some US$400 MM and is targeted for a 1997
completion;
• Governments A 40" gas line from the Turkmenistan Korpedzhe Field is being
constructed to tie into the Iran gas pipeline systems in northern Iran.
The mileage of this pipeline is unknown; [ljj1\lil~~l,fJiiP:i:lliiij,l:
• Governments Turkey's gas company, Botas, has initialed an agreement for the import
of gas from Iran. Plans call for the delivery of some 200 MMcfpd by
1999 or 2000, increasing to nearly 1 Bcfd by the year 2020. The full
scope of this project is to extend the export pipeline to Greece,
incorporating a total distance of some 4,000 miles, with a reported
estimated cost of US$1 0 billion. The Iranian portion of the pipeline is
estimated to cost some US$800 million, which will be difficult to
finance due in part to U.S. sanctions; BiiJ§f~~f"~jJ~,~lil!~s~1~
• Governments A US$3-10 billion project for an export gas pipeline between Iran and
Pakistan, involving some 1,060 miles of pipeline from Iran's offshore
South Pars gas field to Pakistan. There is also discussion regarding the
extension this pipeline to India, increasing the overall length of the
pipeline to 1,242 miles. An agreement between India and Pakistan has
not been achieved at this time. This project is being considered by
several international oil companies, and the leading contender is BHP.
Other interested companies reported are British Gas, Shell, and Gaz de
1:.""'~W'"·'¥#:<I)':'l':l'*-D·'·,.M"··I·N':"'~\<n
France. gJjU!r~~,iiB~rn.~Ji!~J,g~X;!'
The Iranian and Turkmenistan governments made an agreement last year that will
permit the export of gas from Turkmenistan to Europe via Iran. This plan calls for some 2,485
miles of gas pipeline, of which 900 miles are within Iran.

92
5. MIDDLE EAST AND AFRICA
5.1 MIDDLE EAST
The Middle East contains some 30% of the world's natural gas resources, the
exploitation of which have been mostly dedicated to supporting oil production activities
or used as feedstock for its petrochemical industry. Recent projects, however, have
focused more on the export gas potential, both in terms of LNG or as pipeline gas to
the Indian subcontinent and to southeast Europe.
Iran has the largest natural gas resource base in this region. However, present
political sanctions have limited major development of its gas resources. Present
considerations include major regional export gas projects to Greece on the west and to
Pakistanllndia on the east. These projects will involve several thousand miles of
pipeline. However, financing of these ventures is uncertain. In addition, there are
plans to connect the gas pipeline system with those of the neighboring gas-rich
Turkmenistan who plans to export its gas to Europe via this Iranian connection.
Iraq continues to face UN sanctions, with little gas pipeline activity at present.
There is some discussion regarding an export gas project with Turkey.
Israel continues to move forward with its peace process, and is contemplating
development of a national gas distribution system. Discussions are being made
regarding the importation of gas from Egypt on the west, and possibly from Russia via
Turkey on the north.
Oman is trying to develop its natural gas resources and it now looks like the long
discussed Oman-to-India gas pipeline project will be postponed indefinitely. However,
progress has been made regarding export gas to neighboring Sharjah. Shell is
reportedly making progress regards its proposed LNG project.
Qatar continues to seek ways to develop its huge North gas field, particularly
with numerous LNG projects being discussed. However, export pipeline gas projects
also continue to be reported, among them are pipeline projects to Pakistan on the east,
to Europe on the west, and also to neighboring Dubai.

91
r - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Gaffney, Cline & Associates
LEGEND
.... EXISllNG GAS PIPELINE
• ........... PLANNED or UNDER CONSTRUC1l0N PIPELINE
MIDDLE EAST
Proj. A965 March 97\ Checked: I/l I Fig. 22

Country Review ISRAEL
Israel does not have significant oil and gas resources, and with peace treaties between
Egypt and Palestine, there has been serious discussion regarding the importation of pipeline
gas from Egypt and other neighboring countries.
Amoco, Agip and EGPC plan to sell gas from the Nile Delta area to Israel via the "Peace
Line" and current plans call far the construction of an export gas pipeline from Port Said to
Israel, a distance of some 150-200 miles. Initial deliveries contemplated are some 250
MMcfd, and cO.uld increase to 600 MMcfd as the gas market expands. Eiggf:e~.lggi{igi~~nfi!i~~
On the Israeli side, plans to construct an internal pipeline distribution system, including
a feeder system to the Dead Sea are contemplated. These will be some of the projects that
are linked with the Middle East peace process. It is reported that several U.S. and western
European engineering and design companies have submitted bids for this project. The design
phase is expected to be completed by early 1997. It has also been reported that there is a
plan to build a 323-mile gas pipeline from Eilat in the Gulf of Aquaba to Ashkelon on the
Mediterranean coast. However, with the most-likely source of gas from the Nile Delta, this
latter pipeline would be part of the internal gas distribution system referred to above. §jQi~j
1«!i1l5,,;m'!Hi"'-"YJJ::
~
."
'''~W..,..;grnlnedl'le#li.1
~~",~ &",~n....;..,...u--"'''''=:«'~~'
....
In a separate development, there has been reported a plan to sell gas to Israel proposed
by a consortium comprised of Russia's Gazprom, Turkey's Botas, TransCanada Pipelines and
Israeli partner, Del-Men. This proposal is to sell some 575 MMcfd of gas to Israel and will
require a 300-mile gas pipeline from southern Turkey to Israel via the Mediterranean Sea. This
project will be an extension of the proposed pipeline from Russia to Turkey. The consortium
claims that gas can be delivered by 1999. Negotiations are continuing between the
consortium and the Israeli government. l7tig§~~l~:g;~fjD1§

94
Country Review IRAQ
Iraq has abundant petroleum resources, located mainly in the northeastern provinces.
Iraq's reserves are some 100 MMbo and 110 Tcf, with its sanctioned imposed production of
only 560 Mbopd and 330 MMcfpd. Iraq does not export any natural gas.
Iraq is presently under U.S./UN sanctions and, as a result, pipeline activity is limited.
In view of the current sanctions against Iraq, only one significant gas pipeline project
has been reported. Iraq has agreed to discuss the potential of exporting gas to Turkey. This
US$2 billion project calls the delivery of 1 Bcfd of gas through 850 miles of gas transmission
pipelines. E!§gl!@~~~m~~!f;ie~
INGAA - Gas Pipeline Study,_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

93
Country Review OMAN
Oman has been active in trying to market its petroleum resources, including gas.
Oman's reserves are some 5.1 billion barrels and 25 Tcf, with current production of 850
Mbopd and 650 MMcfd. Oman exports very little of its gas production, however, there are
numerous plans for major gas export projects in the future.
The much-discussed Oman-to-India pipeline proposed by Oman Petroleum Development

is now postponed, and expectations for this US$4 billion project that will lay some 700-900
miles of 24" gas pipeline from Oman across the Arabian Sea to India may not be realized.
Problems associated with the projects included concerns for adequate supply of gas and major
technological problems to lay the pipe over the difficult sea floor. fit[9I~~g;:\~1~ip~nn~~~'\Q
There is an agreement between Oman and Amoco for the delivery of some 1.2 MMcfd
of gas from Oman's central gas fields to Amoco's gas plant in Sharjah. This project will
involve some 300 miles of 36" pipeline at a cost of some US$2 billion. Amoco will use this
gas to continue supplying its customers in the UAE where they are the largest supplier. IijgMf~
~n:-mw'!3ft·'~'""~i1·~"'l!li!I'M"
~~~111!§1P-~!!!L~~'~
In other Oman news, there is progress regarding the Shell proposed Oman LNG plant.
Plans for this 533 MMcfd complex (4 MMty) will require some 230 miles of gas gathering
pipelines between the Saih Rawl Fields and the LNG site at al Ghalilah. Engineering contracts
were awarded last November.

96
Country Review QATAR
Qatar has the third highest gas resources in the Middle East, most of which are located
in the gigantic North Field. Qatar's reserves are some 3.7 billion barrels and 250 Tcf, with
current production of 500 Mbopd and 1.8 Bcfd. Qatar does not export any natural gas at this
time, however, several gas export projects, both pipeline gas and LNG, are in progress.
The main development activity in Qatar at this time is the work associated with the
proposed LNG developments on the North Field. With respect to pipeline activity, the
significant projects are major inter-regional export pipelines from Qatar. The main export gas
destinations presently reported are:
• Qatar to Pakistan Gulf South Asia Gas Co., a consortium of Crescent Oil,
TransCanada, Itochu, and Brown & Root is proposing a
1,000-mile, 48" export gas pipeline from Qatar to
Ef;"'7~;i{~!~'£ar:'~!ill~'eB.
Pakistan', "'MllIJtJE.,w,IT'£t!..:&J~~",m0fl'.G"
• Qatar to Europe A plan to export Qatar gas to Europe via Turkey has been
rumored, but details are not available. It is believed that
Turkey's Botas and Shell are the sponsors of this project,
which will include some 1,200 miles of gas pipeline;
~4g~t1¥§~:a1l1iiliil.
• Qatar to Dubai

95
- - -_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Gaffney, Cline & Associates
5.2 AFRICA
Africa's natural gas pipeline activities are focused mainly on its gas-rich
countries in the north, with isolated projects planned for the rest of central and south
Africa. Export gas to Europe was increased with the completion of the Magreb Europe
pipeline from Algeria to Spain and there are discussions regarding the proposed "Peace"
pipeline for the export of gas from Egypt to Israel.
Algeria is very active regarding gas pipeline projects, but is under attack by
Algerian Islamic fundamentalists. The highlighted activity is the completion of the
Magreb Europe gas pipeline which will export gas to Spain via Morocco. Several
significant domestic trunk transmission pipelines are presently contemplated.
Egypt continues to have exploration success and has significantly increased its
natural gas resources. Major developments regarding its gas resources on the Western
desert and offshore Nile Delta are contemplated, the latter could be aimed at exporting
to Israel.
Libya, under U.S. sanctions, has little gas pipeline activity, most significant
related to extension of its internal trunk transmission system.
Morocco, with little gas resources, has limited gas pipeline activity, most
significant is the recent completion of the Magreb-Europe pipeline from Algeria to Spain
which passes through this country.
Tunisia has some plans for the expansion of its domestic gas distribution
system.
In the rest of Africa, mainly central and south African countries, there are
significant but isolated gas pipeline projects aimed at exploiting some of the gas
reserves of the area.
In west central Africa, the proposed Bonny LNG in Nigeria continues to stall due
to lack of firm markets. A West Africa project to deliver gas from Nigeria to Togo and
Ghana is currently planned.
In southeast Africa, Madagascar has plans to develop its Manambolo gas field,
and Mozambique is planning to develop its Pande gas field which is planned to supply
gas locally to Maputo and for export to Johannesburg in South Africa. Further north
on Africa's east coast, Tanzania plans to develop the Songo Songo gas field, which
calls for a gas pipeline to Dar es Salaam.
In southwest Africa, Namibia plans for its Kudu gas field may involve local
usage, as well as possible export to Cape Town in South Africa.

98
Country Review OTHER MIDDLE EAST
The remainder of the Middle East countries, although with significant petroleum
resources, has relatively less gas pipeline activity mainly because they already have significant
gas pipeline infrastructure developed. However, for some of these countries, continuing
development will require gas pipelines and transmission systems.
For the other Middle East countries, the following are summaries of the main highlighted
gas pipeline projects:
Abu Dhabi ADNOC has several local intra-field gas pipeline connections;
Saudi Arabia Aramco is carrying out improvements to the Master Gas System
and has plans for a forth gas plant. Some US$600 MM is
budgeted for additional gas pipeline linking the major
components of this facility;
Yemen Proposed Hunt Oil, Exxon, Yukong US$3 billion LNG project
discussed. Planned capacity is 5 million tons/year.

97
. - - - - - - - - - - - - - - - - - - - - - - - - - - - - Gaffney, Cline & Associates
LEGEND
- EXISTlNG GAS PIPELINE
............ PLANNED or UNDER CONSTRUCTlON PIPELINE
AFRICA
New Gas Pipelines
Proj. A965 March 971 Checked: Ii! I Rg. 23

Country Review ALGERIA
Algeria, located on the southern Mediterranean Sea, is a major pipeline and LNG gas
exporter to western and southern Europe. Algeria has tremendous hydrocarbon resources,
with some 10 billion barrels of oil and 128 Tcf. Production is reported at 1.2 MMbopd and
12.9 Bcfd, of which some 3.1 Bcfd is exported. Algeria has its LNG facility in the coastal city
of Skikda and has a gas export pipeline to Italy (TransMediterrean pipeline) and recently
extended to Spain/Portugal (Magreb-Europe pipeline).
Algeria gas resources are located on the central (Hassi R'Mel), south central (In-Salah)
and southeast sections of the country.
Algerian Islamic militants have threatened and carried out attacks on petroleum
operations in the country.
There are several significant gas pipeline construction presently active in Algeria, among
them are:
• Magreb Europe Pipeline
This recently completed (fall 1996) 860-mile, US$2.2 billion pipeline will transport gas
from the Hassi R'Mel gas field and gas pipeline hub to Spain and Portugal via Morocco
and the Gibraltar Straits. The Algerian portion of this pipeline, comprising some 330-
mile, 48" pipeline connects Hassi R'Mel to Berguent on the Moroccan border. This
pipeline is expected to have a capacity of 1 Bcfd, but will initially carry only about 300
MMcfd. Future expansion of this system to export gas to France and Germany is under
consideration; 6jgl!i!;~~~mii~liiii'[
• Hassi R'Mel to Skikda
Sonatrach is presently constructing this 356-mile, 42" gas pipeline which is expected
to be completed by year-end 1997. This pipeline is expected to cost some US$200
~·~"","'"",~%i;:n"!j~'tlft·""\'iM"A'%"'JM'
MM; !i!g!i!~~gar~~!~~lm:~~
• In-Salah to Hassi R'Mel
BP has an agreement to develop the In Salah Field in southern Algeria and plans are for
the construction of a 356-mile, 42" gas pipeline to deliver gas to the Hassi R'Mel gas
pipeline hub, where the gas may be sold into the Magreb-Europe system. The inclusion
of the In Salah Field may help alleviate gas supply concerns to meet Algeria export
commitments. This project is expected to start in December 1997; 6!9lJr@m~~fldi~lIrre
~,

99
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Gaffney, Cline & Associates
• Tiguentour to Hassi R'Mel
Sonatrach is considering the construction of a 324-mile, 42/1 pipeline that will connect
these fields. However, this project would be an alternative if the In-Salah to Hassi
R'Mel project fails to materialize. The Tiguentour Field is enroute of the In-Salah to
Hassi R'Mel pipeline;
• Alar to Hassi R'Mel
Sonatrach and BP are considering this 345-mile, 48" pipeline to collect gas from Alar
and other fields in this eastern area near the Libyan border. This line will parallel
existing pipeline. Figure 23 - Pipeline 4

100
Country Review EGYPT
There is an increasing importance of gas in Egypt, and plans call for a significant jump
in domestic gas consumption to 1.9 Bcfd by the year 2000, and 2.8 Bcfd within the next
decade. Egypt has substantial petroleum resources, with reserves of 3.9 billion barrels of oil
and some 22 Tcf of gas. Corresponding production is 920 Mbopd and 1.5 Bcfd.
Egypt's gas resources are found in all its important petroleum areas, the Western
Desert, the Nile Delta, and the Red Sea. Recent gas discoveries in the Nile Delta by Amoco,
and in the Khalda area (Shell and Apache) have spurred the interest in gas development in the
country.
The most significant domestic gas development is the gas resources in and around the
Khalda concession, including Shell's Obaiyed gas discovery, as well as Apache's fields in the
area. This development will connect these fields with the existing gas grid and supply gas to
the 640-mw power plant at Amaria. This proposed system will be a 200-mile gas pipeline,
with an estimated combined 465 MMcfd from both suppliers. Figure23-Pipeline5
Because of the gas discoveries in the Nile Delta and other areas, there has been
consideration of expanding the domestic gas grid. Details of this proposal have not been
released.
In a related development aimed at developing the country's gas resources, is a plan to

export gas to neighboring Israel. Amoco, Agip and EGPC plan to sell gas from the Nile Delta
area to Israel via the "Peace Line" and current plans call far the construction of an export gas
pipeline from Port Said to Israel, a distance of some 150-200 miles. Initial deliveries
contemplated are some 250 MMcfd, and could increase to 600 MMcfd as the gas market
expands. Portions of the Egyptian gas would also be export to the newly established
Palestinian areas. Figure.23.~ Pipeline. 6
In other activity, the Petroleum Pipeline Company (Egypt) has several localized minor
gas pipeline projects under construction or planned.

101
Country Review LIBYA
Libya, located on the southern Mediterranean Sea; is a modest LNG gas exporter to
Spain. Libya has tremendous hydrocarbon resources, with some 30 billion barrels of oil and
45 Tcf. Production is reported at 1.3 MMbopd and 1.2 Bcfd, of which some 142 MMcfd is
exported as LNG to Spain.
Libya continues to be under U.S. sanctions, but European companies Agip, Repsol and
OMV are active in the country. There are several potentially significant gas development
projects possible.
There is little activity regarding gas pipeline projects in Libya, however, some
discussions are reported that may result in firm gas pipeline plans in the future, among them
are:
• Possible linkage with the TransMediterrean gas pipeline to Italy, details

unknown; Figure~23':Pjpelinei7
• A 417-mile gas pipeline linking Misratah and Knoms;
• Pipelines associated with the development of the Attahadi gas discovery

(reported 10 Tcf).

102
Country Review MOROCCO
Morocco, located on the southern Mediterranean Sea, has negligible oil and gas
resources. Of main significance at present is the construction of the Magreb Europe gas
pipeline which passes through the country.
• Magreb Europe pipeline This recently completed (fall 1996) 860-mile, US$2.2
billion pipeline will transport gas from the Hassi R'Mel gas
field and gas pipeline hub to Spain and Portugal via
Morocco and the Gibraltar Straits. The Moroccan portion
of this pipeline, comprising some 340-mile, 48" pipeline
connects with the pipeline from Hassi R'Mel at Qujada near
the Moroccan boarder to the Straits of Gibraltar, where it
crosses into Spain. This pipeline is expected to have a
capacity of 1 Bcfd, but will initially carry only about 300
MMcfd. There is consideration for future expansion of this
system to export gas to France and Germany.
• OOEP 120-mile, 14" and 24" gas transmission pipeline is under

study.

103
Country Review NIGERIA
Nigeria, located on the west coast of Africa, has significant oil and gas resources, with
reserves on the order of 20 billion barrels and 110 Tcf. Six major operators in the country,
both onshore and offshore, are Shell, Mobil, Chevron, Agip, Elf and Texaco, with Shell being
the largest. Current production is on the order of 2.0 MMbopd and 3.3 Bcfd. Of main
significance is the proposed US$4.5 billion Bonny LNG plant scheduled to be constructed.
However, another setback was experienced late last year when ENOL canceled it's contract
to purchase Nigerian LNG. This negative action could further stall the realization of this LNG
project.
Nigeria's gas resources are found mainly on the Niger Delta, onshore along the coast
and offshore.
There are two main proposed gas pipeline activities reported:
• Gas pipeline associated with the proposed Nigerian LNG project, reported to be
126-mile, 20" and 36"; FigiJre,'23';Pipeline8
• Regional gas distribution pipeline between Nigeria, Ghana, and Togo. These
three countries recently signed a pact to form the West Africa Pipeline company
that will supply gas to local power plants. Reported cost for this pipeline project
is some US$230 MM. It is noted that Chevron (Nigeria) also reported planning
a 524-mile gas pipeline from its offshore Eservos Field to Ghana. Figure 23 -
Pipe\ine),9

104
Country Review OTHER AFRICA
The remainder of the African countries have relatively less petroleum resources, and
their gas pipeline activity is correspondingly reduced. However, for some of these countries,
emerging exploration activity may lead to the development of some gas pipeline transmission
systems.
The following are summaries of the main highlighted gas pipeline projects:
Angola Several local minor intra-field gas pipelines;
Ghana Part of the West Africa Pipeline system planned to transport gas
from Nigeria to Togo and Ghana;
Madagascar A 220-mile gas pipeline is planned to transport gas from the

offshore west Manambolo Field to the mainland;
Mozambique Enron is considering a 565-mile, 16" and 24" gas transmission

pipeline from the coastal Pande Field to Maputo and to
Johannesburg in South Africa. In addition, two laterals of 380
miles and 340 miles may be needed to reach industrial areas;
Figure 23 - Pipeline 10
Namibia Shell is planning to develop its Kudu gas discovery and pipe the
gas to shore with a 75-mile, 25" system. Shell is also planning
to build a 342-mile gas transmission pipeline from its Kudu Field
to Cape Town in South Africa; Figure 23 - Pipeline 11
Tanzania Ocelot Energy is planning a 136-mile, 18" gas pipeline from its
Songo Songo offshore discovery to Dar es Salaam; Figure 23 ~
Pipeline 12
Tunisia Societe Tunisienne de l'Electricite et du Gaz is building a 148-mile

gas pipeline from Gabes to Msaken for power generation.

105
APPENDIX
INGAA - Gas Pipeline Study----------------------~A~9;;;6;5:-;.O~O

IGAA Pipeline Study Gas Pipeline Spreadsheet APPENDIX A
Europe Region
. MOl ., Diamo Location Destination Completio Contractor Notes

Company country , I es i Inches , Status
(from) (to) n
Russian port of From Turkey gas will be delivered to Greece,
Tuapse under the to Trabzon in Planned
Gazprom Albania Turkey Macedonia, and Albania
Black Sea
This link brings gas from Russia via Slovakia

Puchkirchen, Burghausen, and Austria to Germany. The pipeline has 2
OMV Austria 93 Completed
Austria Germany strands capable of moving 8 bil eu meters/y
Wingas Belgium 140 Zeebrugge, Belgium; Aachen, Germany ~ Planned Will transmit 1 bi! eu meters of gas
Kaegard, Danish Will transport 4 billion eu meters per/year

Amerada Hess Denmark South Ame field Planned with estimated costs of $260-430 mm
Coast
Helsinki to
Finland Copenhagen, Berlin, Germany Planned
Denmark
Haltenbanken, Sweden north of
Finland offshore Norway Siockholm to Planned
through Helsinki
, Gasum plans to double the capacity of the ·1

Gasum Finland Russia Finland Planned Ipipeline with costs estimated at $160 million:
: I
,
Nesle Gas I 160 20 Finland Gaule, Sweden Planned :
Finland I i
Gaz Du Sud-Ouest France I 110 I
I 32 i Toulouse-Lias INarbonne-Argeliers I Planned 1997
foumay sur Arond~

, I
Gaz de France France
!
115
! I Dunkirk Planned Estimated costs will be $211 million
I
Breilbrunnl
RuhrgasAG Germany , 87
I
36
I Schnaitsee
Anwalting I Under constr. 1997 !, JV with Bayemgas GmbH. i
i I
Punchkirchen, Burghausen.
, Austrian Bavarian Gasline (ABG) has 2
OMV Gennany I Completed 1996 I
I I Austria \ Gennany i "
I strands with a capacity of 8 bcm/y
Germany 398 I Emden, North Sea Kar1sruhe i Completed I

IMidal Pipeline System should be completed
I i ! , in 2 years
Rhuhrgas Gennany
i 125 I 48 i Wardenberg Werne , Completed : 1995 I : I
Gennany i I Denmark Gennany Completed I Oct 1996
I ExpanSion was completed for the Deudan
I I I ! i Gas Pipeline
I The additional 220 km stretch to Aachen is
Germany
i I Soest
:IBielereld, Gennany
iI Uppstadt Completed
I 1997
I I to be completed by aulumn 1998
Wingas Pipeline System, The Wedal
iazprom and Wintershall Germany i Aachen, near
Planned ii i
! 186 Gennany Belgium pipeline will connect with the 1200 km
,
I
! Marseille, France
border
Karlsruhe, Germany
I i , MedaVStegal pipeline system
I
i
Wingas Gennany
I French Border
North Rhine, Westphalia,
Planned
I I I
Wingas Gennany 186 30
I
Planned 1997 !
I Germany I Gennany
i I ! I I
Wingas Gennany IBasle, Switzerland Karlsruhe Planned I
i I I ~
i I
'ublic Gas Corporation of !I I Kula, ! i I Natural gas transmission and and
Greece
Greece I 342 I
30 I Greek-Bulgarian I Athens to Lavrion Planned
i I distribution system including an LNG
I I Border i I reception terminal with high pressure that
I I I ! will import gas from Russia
I , I
I I A Feasibility Study has been designed to
Ireland North Ireland I Planned II
I I I
South Ireland
I
link the two together. The project has been
put on hold until March 1997
I ! I i I
54 Montesano Palagiano Under constr.

Snamprogetti I This is a new pipeline
SNAM SpA Italy
J I
42
I 1997
! SpA-Engr. I
i i
I Algeria/Italy Transmediterranean Gas
SNAM SpA Italy 924 26/48 I Mazara del Vallo Minerbio (Bologna) Under constr. ! June 1997 i Snamprogetti II Pipeline expansion. This is the Italian
SpA-Engr.
! i i i section
I
L Russian port of I
Gazprom Macedonia I ~uapse under Blael
to Trabzon in
Turkey Planned I i From Turkey the gas will be delivered to
Greece, Macedonia, and Albania
! I Sea !
!
I
Deve Baira, Albania
Macedonia 124 30 iSkOpje, Macedonia Planned 2000
I !
Kriva Palanka.
Macedonia !, 103 II Bulgaria ,Skopje, Macedonia I Under Consl ! ! I
Estimated costs of $86 million with a
capacity of 0.8 Bcm/y I
Netherlands
i I ! Nogal Line L Block Planned I II , This pipeline will extend the Nogat Une
I I i northward to increase capacity
II i Statpipe gas . ! I
I
Statoil, Asgard Netherlands 295 Aasgard Fields ITrunkline, then to a i Planned
, I, I Haltenlink, Aasgard Fields (Smoerbukk,
gas treatment plant: Smoerbukk South, and Midgard)
! I, I in Norway \ I
iI ,I I ! :1
--
I I ! ! I
IThey are studying the possibility of a secondl
I UK to Europe Pipeline that would supply
Gasume Netherlands I UK Europe Planned
I Russian gas to the UK. This could be viable I
II in the next ten years I
I I I
, I : I
Statoil Nethenands i 395 40 I Karstoe, Norway I Emden, Gennany Planned 1997 I I Europipe II will run parallel to the Europipe I
, with estimated costs of $1.1 billion
! i I
Statoil Netherlands I 186 40 I Sieipner Field i Kollsnes, Norway Planned
Dunkirk
Statoil Norway I 522 I 42 Oraupner (Dunkerque), Planned McDennol NorFra. Pipeline
i i France
196500\APFINAL 03/10/97
INGAA Pipeline Study Gas Pipeline Spreadsheet APPENDIX A
Statoil NOlWay 507 40 Kolisnes Draupner : Under constr. 1997 Phase liB
European Marine Haltenpipe

Statoil Norway 155 16 Heidrun Tjeldbergodden i Under constr. 1997 Contractors
Bovankoyo and
418
Kharasavei gas Western Europe I Under constr. JV with Gazprom of Russia
Poland fields, Yamal
Peninsula
The 75 mile section of the Yamal to Europe.

Poland
~ Szamotuly. Poland i Frankfurt an der !
complete 1996
Pipeline will cost $184 mm and deliver 600 '
to Oder, Germany I million cmJy with an additional 340 mile
segment under construction
In this pipeline includes 100 miles of

branchline distribution system with gas
Portugal 330 28 i Setubal, Portugal Braga, Portugal Under Canst ! coming from Algeria via the
Europe-Maghreb system
Gazprom Slovenia 186 into Italy Planned The annual land rent will be $50 million
mpressa aCiona e as Tuy Under constr. INITEC

SA Spain 112
The Natural Gas Group Spain 108 Jean/Granada Planned
The Natural Gas Group Spain 259 Alicante Planned ,
Spain 785
I Hassi R'Mel gas
field through
i to the Iberian Completed 1996
~~~.~~",.'-~~
I Spanish, Moroccean, Portugese, Genna"
I Morocco and Peninsula and French Markets with Spain being the
Tterminus of the Maghreb-Europe Pipeline
I
II
Gibraltar
!, I
The Natural Gas Group Spain 180 ! 48 Tarifa Comoda Planned i I
I The European Union Council approved a

proposal to include the Nordic Gas Grid in
the Trans-European Energy Networks. The
Swaden
I Planned Nordic Gas Grid will integrate the natural
I gas networks of Finland, Sweden, and
Denmark
I I
I
Sweden i Haltenbaken,
through Sweden,
north of Stockholm, Planned
i
I
Norway
to Helsinki, Finland I
I I
Sydgas Swaden 100 16 Hyltebak Tonkoping I Planned Estimated costs are $90 million
I Russian port of
I to Trabzon in I From Turkey the gas will be delivered to
Gazprom Turkey Tuapse under the
Black Sea
Turkey I Planned
I I
Greece, Macedonia. and Albania
Mameulli. Georgia
Gazprom Turkey Mozok. Russia tothe Turkish Planned
Border
I I
IEstimated costs of $2 billion and will deliver
Turkey
I Iraq Turkey Planned
I i 1 Bcfpd of gas
!DeSigned to carry Turkmeni and Iranian gas

Shell Turkey Europe Turkey Planned
I I and connect with a pipeline in Qatar
Will carry 200 MMcfpd increasing to 1Befld

BOTAS Turkey Iran Greece Planned 1999-2000
by the year 2020 with costs of $10 billion
I I
Gazprom. Botas.Trans
Canada Pipelines and Turkey 300
I
Southem Turkey
!
Israel Planned 1999
! I Proposal to sell gas to Israel that will carry
575 MMef with an extension of the proposed
De~Men pipeline from Russia to Turkey
I
Serves Forties field
BP Exploration United Kingdom 36 in North Sea Under constr.
I ETPM Services
Ltd.
(UK)
Ballylumlord. I
British Gas United Kingdom 100 CasUe Douglas.
ScoUand Ireland then to Planned Will transport 100 mmefld
I Beijast
i
United Kingdom 112 26 Murdock Field.
North Sea
Theddlethorpe.
English Coast Planned
i I
Sage Terminal at
United Kingdom 121 26 Britannia Feild St. Fergus Planned 1997
,
United Kingdom 150 40 Baeton. England reebrugge. Belgiurr UnderConst 1998 i ! Will transport 2 bcld and designed to carry
I gas to the UK if necessary. The
Interconnector is the largest natural gas
! pipeline project in UK
!
Total Pipeline Miles 8498 I
Completed Miles 1401 I !
Under Construction Miles 2870
i
Planned Miles 4227 ~'} Note - For regional multi-country pipeline. milage included in origin country only
P:\A96500\APFINAL 03/10/97
IGAA Pipeline Study Gas Pipeline Spreadsheet APPENDIX A
FSU Region
,
Miles' I Diam, Location Destination ,Completio Notes
Company Country I
. Inches (from) (to) Status n Contractor
Armenia and Ukraine will find it difficult to
Turkmenistan fund the $1 billion cost and there will
Armenia through Iran to to Ukraine Planned probably be some type of barter or
Armenia exchange agreement.
; Azerbaijan through! In the past Azerbaijan has vehemently

Armenia to Tur1<ey Planned
! Armenia ! opposed this route.
AIOC (Azerbaijan Azeri, Chirag and i Sangachali via the

ntemational Oil Company)
Azerbaijan 143 Guneshli fields I Nefty~~~ Kamni Under Constr ; Saipem The cost of this system is $24.5 million
;mid 1997
I i :The Belarus sectionaf the Yamal- Europe

IKondratki to Poland! Ipipeline will consist of a 130-mile double
Belarus Nesvizh Under Const 1997
I pipeline from Nesvizh to Kondratki where
I
:the pipeline will connect with the Northern
i Lights system into Poland. This part of the
iproject is projected to cost $500 mm.
There are no firm plans for the pipeline at
Estonia Planned
this time
, , i
I Grutransgas is trying to form a joint venture!
i
. i I i with a Swiss Company to build the new !
Gazprom Georgia i
I Marneulli, Georgia i Turkish Border iI Planned
I : section of the pipeline. This pipeline would I
I I 19ive Gazprcm another route for gas from the:
i
i
•
I I !
I
i
i Astrakhan Field !
I
I ,
I Southern i Kazalfragaz is considering expanding gas !
Kazakfragaz Kazakhstan
i I Kazakhstan
Planned II ,i i storage in Southern Kazakhstan !
! I : I I
Latvia INorway to Sweden to Finland to
Estonia and Latvia i Planned i Presently no plans to build this pipeline ,I
,i I i I
I
I
i I I I! I
! Yamal to EurcpePipeline with three 56"
! II ! ipipes that would nun the 1531 miles from the
I I Yamal Peninsula to Torzhok with a
Gazprom RUSSia 2485 56 I Russia through German gasI
Yamal ~enninsula, o Germany and the
IBelanus and pOlandrdistribution system

Planned
I i throu g h put 01 83 Bcm/y. From Torzhok to
Frankfurt an der Oder, Germany two 56"
I
! , i pipes willbe able to carry 67 Bcm/y. This
i [pipeline will connect with the Northern Ughts
I I I
! system for part of the distance in Belarus.
,, ! !, , l
I i I , I
i
i i
Russia
Russian port under Black Sea to
Planned IFrom Tur1<ey the gas will be delivered to
I Tuapse Trabzon, Tur1<ey
Greece, Macedonia and Albania
Gazprom 1959 56 IGOr1<Y through Talla
Russia
I to Kiev, Ukraine Planned
I
[
sum, joint venture between ~here is a proposal to double the capacity 01

Gazprom and Neste
Russia
I Russia Finland I Planned
I the pipeline with costs 01 $160 million
i I I
I I , Chinese and Russian leaders run this
I I
I RUSSia I lr1<utsk, Siberia
~rcugh Mongolia to
Planned I i
I
pipeline. This line could extend to South
Korea with an oil Pipeline running from
the Chinese Coast I eastern Siberia to China is already under
I I i I i construction
Zahavkazye to
Gazprom Russia 2812 56 Yanburg Planned I
! I i Gor1<y
i
Russia I 142 , Sakhalin Island Sekasti UnderConst
I i
i i
i I
~roU9h Alghanista~
I !Gazprcm and Trao Turkmenrcsgaz, a jOint
ocal, Delta Oil Co. 01 Saudi I Dauletabad field, to the Sui gas field I I j venture between Gazprom and the
Arabia
Turkmenistan 900
I Tur1<menistan in Pakistan
Planned
i
ITUr1<meni govemment, Unocal and Delta
Petroleum have proposed this pipeline
which will cost $3 B and carry 1.5- 2 bcf/d.
i~~~~~e~n~':~~n:~~I~i~Ii~:~~to India.
Esso China, CNPC and
Mitsubishi
Turkmenistan 3700
I ad;,~~~=~;;'n I
to China's Pacific
Coast
Planned
i
i,with
Could be extended 1,200 miles to Japan
extension to South Korea.
i
I
! Turkmeni and i via Tur1<ey and I ,i IEventually the pipeline will carry Syrian and I
Shell Turkmenistan I Iranian gas to connecting wi a i Planned Iraqi gas, with lines that would nun to loading
I iI Europe pipeline from Qatar i I ! terminals at Ceyhan, Tur1<ey
I I
Turkmenistan's ! Estimated costs are $192 million and will
Turkmenistan I 87
I Korpedeh field
Kurtkue, Iran underConst
I carry 8 bcm/y
I i
Uzbektransgaz Uzbekistan I 57 30 I Bukhara field ! Khorezm I Planned i Uzbektransgaz is studying
i
Total Pipeline Miles i 12285 ! I I i I !
Completed Miles I i I ~
i
;
Jnder Construction Miles 372 I ! I

: I I
Planned Miles
i ! 11913 r O
) Note - For regional multi-country pipeline, milage included in origin country only !
i I
~96500\APFINAL 03/10/97
South America
Company Country Miles. I Diam. I Location Destination Status iCompletio Contractor Notes
!Inches! (from) (to) n
Gas del Estado Argentina 110 I 6 to 12 Repgamino Bragado Planned
I Southern Argentina i
Enron Argentina i 560 i pipelines ;
!' Planned i 2002
I YPFSA Argentina 30 10 i San Sebastian \ Bandurrias ; Under canstr. 1997 This is a new pipeline
i Gas Andes export gas pipeline with costs of I

. $350 MM that will cany 123 MMcfpd. There !
Nova Corp Argentina :!·,La Mora, Argentina! Santiago, Chile i Completed i
I ;
are plans to increase deliveries to 212
! MMcfpd by 2000 and 600 MMcfpd by 2007
i
i
YPF & Uruguay Argentina 2020 !campo Duran area,
! NWBasin
Paraguay &
Uruguay I Planned
Gas del Estado Argentina 69 8 Santa Rosa I Gral. Pica i Planned

i
YPF & Uruguay Argentina 150 12 Buenos Aires i Montevideo ! Planned IWili cany 35 MMcfpd with costs of $100 MM
! :
I
j
II
: Pipeline located at southern portion of
YPFSA Argentina 300
Loma la Lata,
Argentina Concepcion, Chile ! Planned ~euquen Basin and will cany 4 to 6 MMcfpd,
i I
I Chile's northern :1
iI I This is a 1Gas Atacama pipeline that will

CMS Argentina I 509 24 ! Northwes~
Argentina
cities, Mejillones,
Antofagasta &
i
Planned I cany 80 MM~':~;:;je~centiy withdrew
I Tocopilla
Brazil (Parana, Rio I

I ! I
YPF & Uruguay Argentina 338

II
Argentina (San
Grande del Sol, & I Planned I
Nova Corp Argentina 470
Jeronimo)
Northern Loop
Santa Catarina
Planned
I
I
Gas del Estado Argentina 231 4t08 Briloche Esquel Planned
Northwest
YPFSA Argentina 1522 Argentina Grid
I Planned
Shell Bolivia Bolivia Peru Planned I This line i~~~g,l~ ~~~:ethe Andes
This pipeline is in competion with a Northern
YPFB, BHP and ENAP Bolivia 700 Santa Cruz Antofagasta Planned I Argentine pipeline
Transportadora de
Hidrocarburos (yPF, Enron,
and Shell)
Bolivia 350 28 to 32! Santa Cruz araa I Campinas, Brazil Planned I I I
IWili cany 3.7 Tefly for 20 years with costs of
$1 billion extending over 2000 miles
Bolivia & Paraguay

Governments Bolivia 621 18 Bolivia Paraguay Planned IWiIi cany 88 MMcfpd with costs of $300 MM
Petroleos Brasileiro SA Brazil 290 10 Duque de Caxias I CamposN~oria Planned This is a new pipeline
Sao Paulo and
Petroleos Brasileiro SA
Petrobras
Brazil
Brazil I
2122
290
16132 Santa Cruz, Bolivia
Duque de Caxias
Branches
CamposNitoria
Planned
Planned
1998
i This is a new pipeline
Petrobras Brazil 250 16 Rio de Jinero Belo Horizonte Planned !

Petroleos Brasileiro SA Brazil 202 8/10 Guarnara Fortaleza I Under constr. June 1997 This is a new pipeline
Petrobras et al Brazil 225 22 Campinas Curitiba Planned Phase II of Bolivia to Brazil Pipeline
Petrobras Brazil 2000 Amazon Brazilian Coast Planned his pipeline will run through a tropical fores
Petrobras Brazil 221 Duque de Caxias Betin Planned

Petrobras et al Brazil 100 16 Cur1tiba ltaiai Planned Phase II of Bolivia to Brazil Pipeline
Petro bras et al Brazil 150 14 Criciuma Porto Alegre Planned Phase II of Bolivia to Brazil Pipeline
Petrobras Brazil 290 Guamara Fortaleza Planned
Petrobras et al Brazil 250 20 Campinas Guararema Planned Phase II of Bolivia to Brazil Pipeline
Petrobras I YPF Brazil 1000 NO=s~~;.ssin Southeastern Brazil Planned
British Gas, Tenneco, BHP, 700 Campinas, Near

Brazil 28 Corumba, Brazil Planned
I Petrobras San Paulo
i
Petrobras et al Brazil 200 14 ltaiai Criciuma Planned Phase II of Bolivia to Brazil Pipeline
! Gasducto Gas Andes SA export gas

pipelineexpected to begin 2nd qtr of 1997
i Nova Corp Chile La Mora, Argentina Santiago, Chile Completed . with costs of $350 MM and will cany 123
MMcfpd. There are plans to increase
deliveries to 212 MMcfpd by 2000 and 600
MMcfpd by 2007
Chilectra Metropolitan Chile 5000 Planned Various gas distribution lines are expeded
to be constructed
Loma la Lata,
YPF Chile Argentina Concepcion, Chile Planned Will cany 4 to 6 MMcfpd
Gas Atacama Chile's northern I

CMS & Partners Chile 24 pipeline from
Argentina's
Northwest Basin
cities; Mejillones,
Antofagasta and
Tocopilla
i Planned This pipeline will cany 180 MMcfpd. Nova
recentiy withdrew from project
Transmetano SA Colombia 97 12 Sebastopol Medellin ! Planned 1997 This is a new pipeline

Empresa Colombiana de
Petroleos
Colombia 193 214/10 Main gas pipelines Influence area Planned I 1997 SpieCapag This is a new pipeline
Emprasa Colombiana de Transgas de Occidente

Petroleos Colombia 214 20 Mariquita Cali Under constr. 1997
SA This is a new pipeline
P:\A96500\APFINAL 03/10/97 :
GAA Pipeline Study Gas Pipeline Spreadsheet APPENDIX A
Empresa Colombiana de Condux, Dragados,

Colombia 128 i 22/14/12 Vasconia Bogota Under constr. 1997 This is a new pipeline
Petroleos Conequipos, Montecz
Centragas Pipeline with capacity of 150

Enron Colombia 357 18 Ballena Barrancabenneja Completed mmdpd and Ecopetrol as operator
Amoco Colombia 55 20 Opon Barrancabermeja Planned
Ecopetrol Colombia 76 20 Vasconia Mariquita I Under constr. Centragas Pipeline
Ecopetrol Colombia 94 12 Cusiana-Apiay Under constr.
Ecopetrol Colombia 16-20 Barrancabermeja Puerto Serviez , Under constr. Centragas Pipeline
Minminas Colombia 6-10 Barrancabermeja Bucaramanga i Under constr. i Ancilliary spur lines will connect major cities
along main pipeline route
,
Ecopetrol Colombia 173 12 Mariquita Dina : Under constr. Centragas Pipeline
I Estimated costs of 5300mm that will export I

188 mmcfpd. The Paraguay Gov. has applied I
Paraguay 18 Bolivia Paraguay Planned 1997 Ito the lOB and Fonplata for joint funding andi
tender for construction
Petroperu Peru 170 12 Camisea Cusco Planned 1998
Shell 1 Mobil 1 Petroperu Peru 373 18 Camisea Lima Planned 1998

iEstimated costs of $2.8 billion that will carry !I'
: 200 mmcfpd and take 7 years to complete i

, ,
I
I I \
I
, I Maple gas acting as field operator with the (
Peru 52 6
"
! Aguaytia I Pucallpa Planned I I Aguaytia pipeline running to the town of i

I !
!
I
I i i i I I Pucallpa
I
Peru 500 Camisea , La Paz. Bolivia Planned
i
Will connect with the proposed Bolivia to
I ! I i Brazil gas pipeline system I
10ffshore SSEG field!then onshore to the
)C) National Gas Company
of Trinidad Trinidad
I 112 36 & 40 to land near I
LNG plant at Point Planned ! 1999
I!
!
will carry 475 mmcfpd
,,i
I Galeota point.. Fortin
i
I r l l carry 35 mmcfpd with estimated costs of
I ,,I
YPF & Uruguay Uruguay 150 12
I
Buenos Aires Montevideo
i
Planned
! I
100 to S130mm. The bids have been called
for this project
Uruguay Bolivia Paraguay Planned , This pipeline may be extended from

! ! I Paraguay to Uruguay
Venezuela 200
! I i Planned ,! Development of a future LNG project
i i
I ; This pipeline is a steam generation to
Venezuela ,! 500 I ! Planned I enhance heavy oil production from the vast I
I I
!,
, I I "
" Orinoco Heavy Oil Belt
I i !
, i There will be an additional delivery spur of I
Venezuela 900 I Venezuela Colombia Planned
I Ian extra 320 miles of gas pipeline although
I I the project looks doubtful
i I
!
,
1
I
i i ,
The Jose Petrochemical Complex is a

Venezuela i 100 I gas fields
iI Jose Planned !
I i ! I feedstock for petrochemical production
Western
Venezuela 200 IEastem venezuela! Venezuelan
I
Planned Built for additional Oilfield and refinery use
II I ' Pipeline i Pipeline
I
Total Pipeline Miles 26361

Completed Miles 645 i
Indar Construction Miles 1078
Planned Miles 24638 i 0) Note _ For regional multi-country pipeline. milage included in origin country only
,96500\APFINAL 03/10/97
Asia Pacific Region
Company I Miles' i Diam. ; Location Destination Status iCompletio Contractor Notes

Country ! Iinches! (from) (to) n
Tenneco Gas Wallumbilla ! Completed 1996 ! FletcherlSpie Pit Engr.• This is a new pipeline
Australia ! 470 16 Ballera
Gas and Fuel Australia 65 8 Chiltem Valley j Koonoomoo Planned
Chevron IIPC Australia I 820 Cape York Weiba
, Planned I Pipeline will import gas from P N G i
I ! I
Gas Transmission Corp. Australia ! 80
i 16 i Wodonga WaggaWagga i Planned I
May 1998 JV with East Australian Pipeline Ltd. I
I
Gas Transmission Corp. Australia I 84 I 20
i lana Corio
i Planned i Apr. 1999 i This is a new pipeline I
Gas and Fuel Australia 105 8 I Cansbrook I Horsham ! Planned i I i

BHP Petroleum Australia 435 18 i Longford Wilton Under Constr i 1997 I
i I JV with Westcoast Energy
IOffshore Northwest I . n! I i
Australia 870 14 to 16 . Shelf area Kalgoortle, Western Completed i Goldfields Gas PL: cost $400 mm
I (Karratha) I
Australia i I
I
I i I
Magellan Petroleum Australia
I
375
I DalWin
I
Gove, Gulf of
Catpenteria
I
I
Planned I i This line competes with other Gave pipeline I
Australia 83 12 r agga
'Wigga (N SI Albuty (Victoria) Planned
I
i
I
East Australian Pipeline and Gas
Transmission Corp. Pipeline
! This line taps into the Palm Springs to
Northern Territory Power and
Australia iI 12 ! Mataranka ! Goye
! Planned
Water Authority i i Darwin Pipeline
Tenneco Australia 800 14

I
Amadeus Basin
(Palm Valley) I p01~~:~:uth I Planned I
! I Estimated costs of $200 million
746 16 Arnadues Gas at Moomba (Southem Planned Estimated costs of $200 million
Australia Palm Valley (N T) Australia) i
I ! Onshore to NSW
PASA Australia 375
I Minerva Ii(Melbourne) andior
SA (Adelaide)
Planned i Offshore Bass Straits
I
Woodside Australia 100 NWSheif I Butrup Peninsula Planned

Cooper/Eromanga I
Australian Gas Light Australia 522 Basin
Mount Isa UnderConstr
Gas Transmission Co., Ltd. Bangladesh 40 36 Asuuganj Bakhrabad Planned John Brown E&C
Bangladesh 50 I Offshore Kutubdia I Chittagong Planned

I
Northwest gas grid! Planned
Bangladesh 400 expansion i
An:o etal China 438 I Yacheng Hong Kong Completed Will carty 300 mmcfpd
I I !
An:o etal China 62 I Yacheng i Hainan Island Completed
China i East RUSSia thru China Planned Estimated to be 3750 miles
CNPC China 372 16 ! Ordus baSin Hohot Planned
Will carty 100 mmcfpd with costs of $500
CNPC China 204 16 I Ordus basin Yinchun Planned
mm
CNPC China 194 18 i Junggar basin I Tutpan Basin Planned Will carty 155 mmcfpd
I Will carty 100 mmcfpd with costs of $350
CNPC China 559 26 Ordus basin Beijing Planned
I mm
Shanghai Petroleum Cotp China 249 14 Ping Hufield Shanghai Planned i
China Turkmenistan thru China Planned Estimated to be 3750 miles
;
I
CNPC China _ 305 16
, Ordus basin Xian Planned Will carty 25 mmcfpd with costs of $300 mm
; i
India i Bangladesh India Planned
ONGC India 150 42 Bassein field Hazira terminal Planned Bombay High Pipeline
UNOCAL India Turmenistan land pipeline Planned Estimate 2000 miles
i Iran (South Spars) , Sub Sea Pipeline Estimate 1500 miles
India Planned
I
India Myanmar subsea pipeline Planned 1000 mile subsea pipeline
ONGC India 124 20/30 Bombay High Herera Field Planned Bombay High Pipeline
India 24 , Oman Arabian Sea Planned Project postponed, esl 1050 miles
India i Qatar (North field) , Iran Planned Estimate 2000 miles
! Banjarrnasin (So. i Perum Gas Nagara
Pertamina Indonesia 500 Kalimantan) Gresik
I Planned
! I (PGN)
Banjarrnasin (So.
Pertamina Indonesia 300 Balikpapan Planned II Perum Gas Negara
Kalimantan) I
Shell Indonesia 280 Central Java Cilacap (S. Java) Planned , Perum Gas Negara
British Petroleum Indonesia 100 t<ampong BaN area

, Ujung Pandang Planned ! Perum(PGN)
Gas Negara
Central Java Perum Gas Negara

Shell Indonesia
i
128
I Kepodang Field
(Semarang) Planned
!i (PGN)
I : E. Java additional ,
ARCO Indonesia 100
I
field development i
and connections ! , Planned I
;
Perum Gas Negara
(PGN)
I
I
South Sumatra
Perum Gas Negara (PGN) Indonesia 300 i (Prabamulih) :--vest Java (Cilegon) Planned
I I
I Malaysia-Malacca I Arun (N Sumatra) Perum Gas Negara Extension of the NatunalDuyong line across
Indonesia Planned
Pertamina et al 900
I Straits I . I
! (PGN) the Peninsula
Batam Islandi
Indonesia 175 ! Central Sumatra Planned !;
Perum Gas Negara (PGN)
I Singapore spur I !
PertaminaIPTT Indonesia 932 i Natuna Field Thailand Planned Perum Gas Negara
Pertamina Indonesia 295 NatunaArea Singapore Planned Perum Gas Negara
Planned Trans Sumatra CotTidor Gas Project·Duri

Perum Gas Negara (PGN) Indonesia 335 South Sumatra Central Sumatra
i i Field
P:\A96500\APFINAL 03/10/97,
GAA Pipeline Study Gas Pipeline Spreadsheet APPENDIX A
Winagarl Mogoi Perum Gas Negara

.RCO, British Gas, Statoil Indonesia 200 IDeep development, Planned (PGN)
Irian Jaya
Gresik (east Planned Trans Java Project

'erum Gas Negara (PGN) Indonesia 335 Jakarta
Java}lYogyakata I
Parum Gas Negara

ESSD Indonesia Indonesia 140 Natuna Field Natuna Island Planned (PGN)
I Malaysia (Duyong Parum Gas Negara
Pertamina Indonesia 200 Natuna area Area) Planned (PGN)
This line includes across Japan
Japan 1700 Sakhalin Japan Planned Transmission Pipelines
Japan i 300 36 Tokyo Osaka Planned
Japan East Russia IThrough China and I Planned Estimated at 1000 plus miles
, Korea I
Korea Gas Corp. Korea 35 30 Kwahgju Mokpo Under constr. Sep. 1998 I Hyundai This is a new pipeline
Korea Sakhalin Through Japan Planned Estimated at 1000 plus miles
Korea Pusan Yosu Planned

Korea East Russia China Planned Estimated at 1000 plus miles
This PGU III completes the connection from

Petronas Malaysia : West coast of I Th'l d b rd
~Peninsular Malaysia, 31 an 0 er I
i Cit d
amp e e
I I the gas supply on the east coast at Kertih I
! with capacity of 2bcfd I
, I I i \
Shell Malaysia I 150

lEast Malaysia fieldslonshore proceSSing!
I i Planned i Bintulu MLNG II
i facility i
Petronss Malaysia I Malaysia ! Bongkot Facility, ! Planned I Joint Development Area (JDA)
, ! Thailand ,
Occidental Malaysia 200 Ii Offshore Malaysia I Bintulu Processing

FaClhties !
I Planned
i MLNGIII
I
Petronss Malaysia 530 36 I Kertih to Segamat I I to Mertl, Klang Planned ! II
Secondary Parallel loop of Peninsula Gas
Utilization (PGU I and II)
1
I I i I
area, WestlSongkhla Tha'land I
N. Bridge Corp., Chiyoda Malaysia ! 120 i IIpenang
Malaysia i ,I Planned 1
Esso Malaysia I offshore Lawit I Malaysia Planned I I

Sabah gas discoveries with an intra field
Shell Malaysia i 150 I ! I Planned I
I connection
! I I This 225 mile pipeline connected to a 75
Texaco Myanmar 225 I Yetegun I Ranong, Thailand I Planned I I mile onshore line competes with the line to
1 I west coast \ Ratburi
PTT I, Myanmar
II Bong I Tong, PTT
of Thailand
I'
Pllok. near Ratbun
. Planned 1 To be built by PTT in Thailand
Myanmar 1000 Myanmar ! subsea pipeline Planned i i Potential Export to India

,
Texaco Myanmar i 224 i Yetegan I Heinze IslandlZadi Planned I r This line connects with Yadana pipeline II
I Yadana Field east!

Total, MOGE Myanmar 215 I 36 I to Heinze Island & I Bong I Tong, I Planned I VvlII carry 240 mmcfpd
! onshore Zadi i Thailand Border I
Total Myanmar ! 162 i 18
: Yadana field i Yangoon, near j Planned I
, Rangoon I
Southgas Resources i NewZaaland ~ 112 I Dunedin area I Planned !
ShelVBPfTodd New Zealand 276 I Offshore Maui B I Taranaki Planned
I Plationn
Ministry of Energy New Zealand 145 12-20 I Huntiy Marsden, near I Planned
VVhangare
South gas Resources New Zealand 62 I Invercargill area Planned
Pakiatan I Iran Pakistan Planned I I i Estimate 1000 miles i
I !
,i
Infrastructure expansion for imported gas:
i Southern Gas Co. Ltd. Pakistan 166 16-42 I Gadani Karachi Planned
i :
2000 , 1,600 MMcfd new capacity I
rescent Petroleum Co. Pakistan I Doha, Qatar Karachi, Pakistan I Planned -j i Estimated to be 994 miles
i Southern Gas Co. Ltd, Pakistan 75 20 Dadu Karchat I Under constr. I June 1997 I Sui Southern Gas Co. Rehabilitation and expansion project: 20
! I Ltd. MMcfd of added capacity
I I
I : I I Sui Southern Gas Co. Phase" of Quetta pipeline capacity
i Southern Gas Co. Ltd. Pakistan 140 18120! Jacobabad Shaikh Mandah I Under constr. I Oct. 1998 Ltd. ! expansion P~/~~d~~\:~;~la'@'ti 40 MMcfd
,
Pakistan
Onshore
Planned , Grid expansion and new fields will tie-in to I
Connections i this line I
48 Oman Pakistan Planned ! Vvl/l carry 1 6 bcfgJd With estimated 1000 !
Pakistan I miles
i
NOnnem .~as
Ltd.
Ipe Ines Pakistan I 203 30 i Sui Multan
I Planned 1 This line is a gas transmission loop i
Pakistan Qatar Pakistan I !WIII carry 1.6 bcfgd onshore across Iran with I
\ Planned I estimated 1000 miles I
Pakistan Turkmenistan Pakistan Planned ! onshore line: est 1000 miles
S 0 uth along th e Planned ! i
ron I Govemment etall Papua New Guinea 300 Kerema
I existing line i I
i
I I
, -1 This pipeline competes with the Southem

ron I Govemment etal Papua New Guinea
i North Ii Wewak
I Planned
I I line, 150 miles
' This pipeline competes with the Southern
Xln I Govemment etall Papua New Guinea East i Lea Planned
i
I I i ! line, 375 miles
"On I Govemment etal Papua New Guinea Northeast Madang Planned ! This pipeline competes with the Southern
i I i I i I line, 200 miles
Cape York
IPC Papua New Guinea 200 I I, Pandora field Peninsula, iI Planned i
i
i I Australia
I I
l6500\APFINAL 03/10/97
Chevron This line will run onshore to offshore

Papua New Guinea Pandora Planned connections
Shell Philippines Batangas, Luzon Planned 200012002 Will carry 200 mmcfpd
Island
CPCfT enneco Taiwan 190 North Taiwan Planned
Petroleum Authority of 30 : Tantawan offshore! Bechtel
Thailand Thailand 24 pipeline Under constr. 1997
Petroleum Authority of Parallel onshore

Thailand Thailand 30 36 pipeline I Under constr. 1997 Bechtel
I I
I
PTI Thailand I 50 JDA Bongkot Planned
I
!
! PTI Thailand
I 106 ! I Palin ! Songkhla ; Planned I i
i i Will carry 1450 mmcfpd with costs of
I iI I
I
i
PTI Thailand 256 36
i Erawan Rayong
!
Planned
i
I
$700mm
i
PTI Thailand
I 110 I Bongkot
I Erawan I Planned I
Will carry 350 mmcfpd
I
PTI Thailand 161 Ban I Tong
I Ratburi I Under Constr : i i Will connect Myanmar YandanalYetagun i
i I i 1 !
Gulf of Martaban fields
I
! Vietnam 435 I, Vietnam gas fields iI Erawan, Thailand : Planned i
! i
~Y Tay and Lay D~ I
British Petroleum Vietnam 230 Ho Chi Min City ! Planned i 1998
I
ii
I
i Total Pipeline Miles 23775 ;, ! !
Completed Miles 2270
i i
Under Construction Miles 1428 ! I I !
Planned Miles ! 20077 .) Note - For regional multi-country pipeline, milage included in origin country only
I I i i i
P:\A96500\APFINAL 03/10/97,
3AA Pipeline Study Gas Pipeline Spreadsheet APPENDIX A
Africa Region
i Miles" I' Diam .. Location Destination Status iCompletio Contractor Notes

Company Country Inches' (from) (to) n
'Phase II·IV. part of Maghreb-Europeproject,
Sonatrach Algeria 332 48 Hassi R'Mel Berguent I, Under constr. 1997 Bechtel-Engr.lPElCS I will cross Morocco and Strait of Gibraltar to
Cordoba, Spain
This line will deliver gas to Hassi R'Mel

British Petroleum Algeria 356 42 In·Salah Hassi R'Mel Planned pipeline hub, where the gas may be sold into
the Maghreb-Europe System
i A 324 mile project would be an altemative if i

Sonatrach Algeria 42 Tiguentour Hassi R'Mel Planned , the In-Salah to Hassi R' Mel project fails to I
materialize
Sonatrach and British Alar Hassi R'Mel Planned
Algeria 345 48
Petroleum
Sonatrach Algeria 356 42 Hassi R'Mel Skikda Under Const 1997 Estimated costs of $200 mm for project
80nan901 Angola 18 16 Takula Malanga north Planned

Sonangol Angola 18 18 Kambala Limba Planned
, Both lines are around the Khalda i
I~ concession and supply gas to the 640 mw I
Shell, Apache Egypt 200 Obaiyed field Apache's field Planned
power plant at Amaria and will carTY 465 I
i I ! i , I mmcfpd from both
IWiIi carTY 250 mmcfpd and could increase tol

Amoco. Agip, EGPC Egypt
,! 200
I
Port Said 1 Israel Planned i t
: 600 mmcfpd '
i
West African Pipeline I
Nigeria I to Togo to Ghana Planned
,
Ghana
Company I
,
i i
Libya I 417 Misratah Knoms Planned i
Offshore west
Madagasca 220
i Manambolo field
Mainland
I Planned ! I
I
I , ,
!
1
1 Maghreb Europe Pipeline will costs $2.2 I
I
Morocco 340 48 Hassi R'Mel Gibraltar Straits Completed I
I
i
l'
1 billion. The Hassi R'Mel hub to s£ain via
Morocco to Straits of Gibraltar to pain will
carTY a capacity of 1 bcf/d and 300 mmcfpd i
i I I I
OOEP Morocco 120 14&24 i Planned 1
Empresa Nacional de i I
Hydrocrabonetos de Mozambique 565 I Pande field I near Johannesburg Planned i I
Mozambique , I I
Shell Namibia 342 I Kudu Field i Cape Town, South Planned i
Africa 1
:
Shell Namibia 75 25 , Kudu Field to shore Planned I
i
Bonny Island. Snamprogetti
Nigeria LNG Ltd. Nigeria 126 20136 ! Under constr. 1999 I This is a new pipeline
Rivers State I SpA-Engr.
I,
1 I
:Irian National Petroleum Nigeria 64
iAluminum Smelting Under constr. I 1997 1
Snamprogetti
I
Corp. , Co., Ikat Etetuk : SpA-Engr. I
! 1 I
I
,uian National Petroleum
Corp. I
Nigeria 16
I
1214 LBV Sta~on Tolarams Under constr. 1997
T Snamprogetti
SpA-Engr. I
;
This is a new pipeline
Three countries signed a pact to form the

. Offshore Eservas I
1evron I Govemments Nigeria 524 I field
Ghana
I
Planned I West African Pipeline Company with
I I i estimated costs of $230 mm
::leelot Tanzania Ltd. Tanzania I

1
136
i
18
50n90 50n90
Island Dar-es-Salaam \ Planned
I i i JV with TransCanada Pipelines
Ltd./Tanzania govt.
I
.oeiete Tunisienne de
Electricite Gaz I Tunisia
I
3 20 Nabeul Tunis
I
Planned II 1997 ! I
I
i
I
,ociete Tunisienne de
TuniSia 27 24 Nabeul Tunis I Planned 1997 i
Electricite Gaz ! ! i
I I
ociete Tunisienne de Tunisia 148 Gabes Msaken Planned I
Power generation project
I
Electricite & du Gaz i I ! I I
Total Pipeline Miles , ! 4948 I
I ! I 1
Completed Miles I 340 i I ! 1
der Construction Miles I I 894 I

Planned Miles ! I 3714 (*) Note - For regional multi-country pipeline, milage included in origin country only
I
'6500\APFINAL 03/10/97
Middle East Region
Miles. i Diam. Location Destination iCompletio,

Company Country Status Contractor Notes
IInches (from) (to) n
Zakum Development Co. Abu Dhabi 10 I 4 Zakum field Planned 1997 John Brown E&C
Igat2 Iran 48/56 ; Kangan gas field,

C.I.S. Completed ! Saipem Contr. will lay 20% of remaining pipeline.
I Persian Gulf
Turkmenistan
Governments Iran 40 Northern Iran Planned ! The mileage is unknown for this pipeline
Korpedzhe field
Will carry 200 mmcfpd and increase to
Governments Iran ! 4000 Iran Greece Planned 1999/2000 Botas : nea~y 1bcf/d by 2020 with costs of $10 B.
The Iranian portion will cost $ 800 MM.
are Br. Gas, Shell and Gaz de I

I Iran, South Pars
I The leading contender is BHP and others
II interested
I
Governments Iran 1060
II Field
Pakistan ! Planned I ! France with costs of $3-10 billion
I I i i I i i
NIGC Iran I 212 30
I Dalan field
i Marun field I Planned ! 1997 I First phase expected cost: $400 mm
I I Estimated costs are $2 billion and will carry
I Iraq 850
I Iraq
I Turl<ey
I Planned
i ,
I 1 bcfpd of gas
Amoco. Agip, EGPC Israel 200
I Port Said Israel I Planned
i
Ashkelon,
I II i Iintemal gas pipeline distribution system withj
Israel 323
Eila~Gulf of
Mediterranean
I
Planned 1997 I a fedder system to the Dead Sea, both will
Aquaba
I
coast
I Ii I
I
i be linked with the Middle East Process
Gazprom. Botas,
TransCanada Pipelines, Israel
I 300 Southern Turl<ey
I Israel Planned 1999
i Will carry 575 mmcf of gas with an extension
i of the proposed pipeline from Russia to
De~Men . Turl<ey
I
Petroleum Development
Oman
Oman 110 Under constr. I SaipemlConsolidated
Oman Petroleum
Oman 900 24 Oman India Planned Proiect reported to be postponed
Development
Will carry 1.2 mmcfpd with estimated costs
Amoco Oman 300 38 Oman Sha~ah Planned
of $2 billion
Shell Oman 230 Saih Rawi Ghalilah Planned Will carry 533 mmcfpd complex (4mmtly)
Gulf South Asia Gas Co. Consortium of Crescent Oil, Trans Canada,
Oatar 1000 48 Oatar Pakistan Planned
Itochu and Brown & Root
Shell & BOTAS Oatar 1200 Oatar Europe Planned
ARCO Oatar 225 Oatar Oubai ! Planned , Will carry 300 mmcfpd
Total Pipeline Miles 11800
Completed Miles 880 !
Under Construction Miles 110 I
I
Planned Miles 10810 ') Note - For regional multi-country pipeline, milage included in origin country only
P:\A96500\APFINAL 03/10/9.

Sedari, E F M B Reserves PDF

Uploaded by

Copyright:

Available Formats

Sedari, E F M B Reserves PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Sedari, E F M B Reserves PDF

Uploaded by

Copyright:

Available Formats

Review of

Natural Gas Pipeline Activity

Prepared for the INOAA Foundation, Inc. by:

F-9704 Copyright © 1997 by the INGAA Foundation, Inc.

2. FORMER SOVIET UNION ........................••......•...... 34

3. SOUTH AMERICA .•........•..........•..•.....••......•....• 50

4. ASIA PACIFIC ......••.••.....•......•......••........•...... 64

4.1 Pacific Rim (Including Australia) ...•...•.•...•...•........•.•. 65

4.2 Far East (Including China) .•.•..•.••••.•.....•••..•..•..•••• 80

4.3 Indian Subcontinent •....•...••..•.•.......••••••••••..••. 87

5. MIDDLE EAST AND AFRICA ........•...•.....•..•••..•...•...•.. 91

5.1 Middle East ....•.•...••••..•.•....••.•••..••.•.•....... 91

5.2 Africa ...•........•••......•.' •....•.....••............ 98

1• Europe - Selected Gas Pipelines

INGAA - Gas Pipeline Study _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

15. Japan - Possible New Gas Pipelines

A. Pipeline Project Spreadsheet

INGAA - Gas Pipeline Study _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

INGAA - Gas Pipeline Study _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

NATURAL GAS PIPELINE PROJECTS (as of March 1, 1997)

INGAA - Gas Pipeline Study _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

INGAA - Gas Pipeline Study·_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

INGAA - Gas Pipeline Study _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

INGAA - Gas Pipeline Study _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

Country Overview ALBANIA

Natural Gas Pipeline Activities

INGAA - Gas Pipeline Study _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

Country Overview AUSTRIA

• Wienerherberg South 1 found gas in eight different zones at 2,788 feet;

Natural Gas Pipeline Activities

INGAA - Gas Pipeline Study _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

Country Overview BELGIUM

The construction of the Interconnector pipeline from Bacton, England, to Zeebrugge,

Natural Gas Pipeline Activities

INGAA - Gas Pipeline Study _ _ _ _ _ _ _ _ _ _ _ _ _ _ _-:--_ _ _ _ _ _ _ _ __

Country Overview BULGARIA

Natural Gas Pipeline Activities

INGAA - Gas Pipeline Study _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

Country Overview CROATIA

Oue to the continuing war in neighboring Bosnia-Herzegovina, Croatia had to resist

Natural Gas Pipeline Activities

INGAA - Gas Pipeline Study _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

Country Overview CZECH REPUBLIC

Natural Gas Pipeline Activities

INGAA - Gas Pipeline Study_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

Country Overview DENMARK

Natural Gas Pipeline Activities

Smaller pipeline projects:

• Harald West Field to Tyra East Field (48-mile, 24" pipe);

• Expansion of the Danish-German Deudan gas pipeline was completed in October

INGAA - Gas Pipeline Study _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

Country Overview FINLAND

Natural Gas Pipeline Activities

Long-term plans include a pipeline from Haltenbanken, offshore Norway, through

In December 1996, the European Union Council of Ministers approved a proposal to

INGAA - Gas Pipeline Study _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

Country Overview FRANCE

Natural Gas Pipeline Activities

• A 11 O-mile, 32" pipeline running from Toulouse-Lias to Nabonne-Argeliers has