Mozdok – Makhachkala – Kazi Magomed pipeline
Encyclopedia
The Mozdok–Makhachkala–Kazi Magomed pipeline is a natural gas pipeline from Mozdok
in North Ossetia through Chechnya
and Dagestan
to Azerbaijan
. The Azerbaijani section is also known as the Kazi Magomed–Novo Filya or Baku–Novo Filya, and it connects Baku
with the Novo Filya gas metering utility on the Russian side of the Azerbaijan-Russia
border. The pipeline will be used for transportation of Azerbaijani gas to Russia starting from 1 January 2010.
were supplied by natural gas from Iran
. After Iranian Revolution
Iranian supplies were cut off. To replace Iranian gas supplies from Western Siberia and Orenburg
through Novopskov were planned. For this purpose, the North Caucasus–Moscow line was reversed and expanded further south by construction of the Mozdok–Makhachkala
–Kazi Magomed and Mozdok–Tbilisi
–Kazi Magomed pipelines. The Mozdok–Makhachkala–Kazi Magomed pipeline was completed in 1983.
In 2007, Azerbaijan started its own gas production and the pipeline between Russia and Azerbaijan became largely inactive. In the summer of 2008, Gasprom started negotiations with State Oil Company of Azerbaijan
on buying natural gas from Azerbaijan at market prices based on long term agreement between two countries. It had been announced earlier that Russia was willing to diversify its imports and purchase natural gas from Azerbaijan's Shah Deniz gas field.
On 29 June 2009, during an official visit of the Russian President Dmitry Medvedev
to Azerbaijan, governments of both countries signed a deal on exports of Azerbaijani gas to Russia. As per agreement, Russia would be paying Azerbaijan $350 per thousand cubic meters while paying only $300 per thousand cubic meters for Uzbek
and Turkmen
gas. Under the terms of the deal, Azerbaijan is to sell Russia 0.5 billion cubic meters annually with a possibility of increase of the volume to 1.5 in the future.
On 14 October 2009, President of State Oil Company of Azerbaijan, Rovnag Abdullayev
and CEO of Gasprom, Alexei Miller
, finalized the deal. The agreement oversees the exports for 2010-2014 with a potential for extension.
Azerbaijani natural gas would be transported via via Baku-Novo Filya pipeline, which was previously used for transporting of natural gas from Russian to Azerbaijan, until 2007, when the shipments were stopped by Azerbaijan as a result of internal self-sufficient production. On January 21, during the meeting between Alexey Miller and Rovnag Abdullayev Gasprom expressed its willingness to purchase more gas from Azerbaijan. The parties agreed to double the amount of gas to be transport during 2010 from initially planned 500 million cm to 1 billion cm and yet increase the amount to 2 billion cm in 2011.
Starting from 2007, Azerbaijan became exporter of natural gas by starting its shipments to Georgia and Turkey.
, built in 2003. In Mozdok, the pipeline is connected with North Caucasus–Moscow line.
Controlling flows of natural gas to Europe is at the forefront of Russian foreign policy and whether the gas exported to Europe is produced in Russia or is coming from elsewhere through Russia, Russia likes to keep an economic control over Europe thus exerting political pressure on the continent and the West as whole through vital energy exports. Russia's production of natural gas in 2008 equalled to 602 billion cubic meters and 154 bcm of it was exported to Europe and Turkey. A much smaller amount of gas to be received from Azerbaijan at higher prices through the Baku-Novo Filya pipeline and the notion that Russia is charging European importers $280 per thousand cubic meters (much lower than it's willing to pay Azerbaijan), proves Russia's ambitious long term intentions.
Up to 2007, Azerbaijan was a Russian gas importer until country's production of 10.3 bcm per year brought self-sufficiency for internal demand of 8.3 bcm. Azerbaijan's Shah Deniz field is to produce approximately 9 bcm per year, whilst Shah Deniz II is believed to produce 10-12 bcm per year when it becomes operational.
and surrounding regions
in Dagestan, causing fire and leaving 214,000 people without gas supply. Gas supplies from Azerbaijan by the main trunk line continued by reduced volume.
Mozdok
Mozdok is a town and the administrative center of Mozdoksky District of the Republic of North Ossetia–Alania in southern Russia, located on the left shore of the Terek River, north of Vladikavkaz, the republic's capital. The name of the town literally means "dense forest" in the Kabardian language...
in North Ossetia through Chechnya
Chechnya
The Chechen Republic , commonly referred to as Chechnya , also spelled Chechnia or Chechenia, sometimes referred to as Ichkeria , is a federal subject of Russia . It is located in the southeastern part of Europe in the Northern Caucasus mountains. The capital of the republic is the city of Grozny...
and Dagestan
Dagestan
The Republic of Dagestan is a federal subject of Russia, located in the North Caucasus region. Its capital and the largest city is Makhachkala, located at the center of Dagestan on the Caspian Sea...
to Azerbaijan
Azerbaijan
Azerbaijan , officially the Republic of Azerbaijan is the largest country in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded by the Caspian Sea to the east, Russia to the north, Georgia to the northwest, Armenia to the west, and Iran to...
. The Azerbaijani section is also known as the Kazi Magomed–Novo Filya or Baku–Novo Filya, and it connects Baku
Baku
Baku , sometimes spelled as Baki or Bakou, is the capital and largest city of Azerbaijan, as well as the largest city on the Caspian Sea and of the Caucasus region. It is located on the southern shore of the Absheron Peninsula, which projects into the Caspian Sea. The city consists of two principal...
with the Novo Filya gas metering utility on the Russian side of the Azerbaijan-Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
border. The pipeline will be used for transportation of Azerbaijani gas to Russia starting from 1 January 2010.
History
In 1970–1979, Southern Caucasus republics of the Soviet UnionSoviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
were supplied by natural gas from Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
. After Iranian Revolution
Iranian Revolution
The Iranian Revolution refers to events involving the overthrow of Iran's monarchy under Shah Mohammad Reza Pahlavi and its replacement with an Islamic republic under Ayatollah Ruhollah Khomeini, the leader of the...
Iranian supplies were cut off. To replace Iranian gas supplies from Western Siberia and Orenburg
Orenburg
Orenburg is a city on the Ural River and the administrative center of Orenburg Oblast, Russia. It lies southeast of Moscow, very close to the border with Kazakhstan. Population: 546,987 ; 549,361 ; Highest point: 154.4 m...
through Novopskov were planned. For this purpose, the North Caucasus–Moscow line was reversed and expanded further south by construction of the Mozdok–Makhachkala
Makhachkala
-Twin towns/sister cities:Makhachkala is twinned with: Sfax, Tunisia Siping, China Spokane, United States Vladikavkaz, Russia Yalova, Turkey Ndola, Zambia-See also:*...
–Kazi Magomed and Mozdok–Tbilisi
Tbilisi
Tbilisi is the capital and the largest city of Georgia, lying on the banks of the Mt'k'vari River. The name is derived from an early Georgian form T'pilisi and it was officially known as Tiflis until 1936...
–Kazi Magomed pipelines. The Mozdok–Makhachkala–Kazi Magomed pipeline was completed in 1983.
In 2007, Azerbaijan started its own gas production and the pipeline between Russia and Azerbaijan became largely inactive. In the summer of 2008, Gasprom started negotiations with State Oil Company of Azerbaijan
State Oil Company of Azerbaijan
The State Oil Company of Azerbaijan Republic is the state-owned oil and natural gas corporation of Azerbaijan. It is considered to be one of the largest oil companies in the world. It produces oil and natural gas, operates the country's two oil refineries and the running of oil and gas pipelines...
on buying natural gas from Azerbaijan at market prices based on long term agreement between two countries. It had been announced earlier that Russia was willing to diversify its imports and purchase natural gas from Azerbaijan's Shah Deniz gas field.
On 29 June 2009, during an official visit of the Russian President Dmitry Medvedev
Dmitry Medvedev
Dmitry Anatolyevich Medvedev is the third President of the Russian Federation.Born to a family of academics, Medvedev graduated from the Law Department of Leningrad State University in 1987. He defended his dissertation in 1990 and worked as a docent at his alma mater, now renamed to Saint...
to Azerbaijan, governments of both countries signed a deal on exports of Azerbaijani gas to Russia. As per agreement, Russia would be paying Azerbaijan $350 per thousand cubic meters while paying only $300 per thousand cubic meters for Uzbek
Uzbekistan
Uzbekistan , officially the Republic of Uzbekistan is a doubly landlocked country in Central Asia and one of the six independent Turkic states. It shares borders with Kazakhstan to the west and to the north, Kyrgyzstan and Tajikistan to the east, and Afghanistan and Turkmenistan to the south....
and Turkmen
Turkmenistan
Turkmenistan , formerly also known as Turkmenia is one of the Turkic states in Central Asia. Until 1991, it was a constituent republic of the Soviet Union, the Turkmen Soviet Socialist Republic . Turkmenistan is one of the six independent Turkic states...
gas. Under the terms of the deal, Azerbaijan is to sell Russia 0.5 billion cubic meters annually with a possibility of increase of the volume to 1.5 in the future.
On 14 October 2009, President of State Oil Company of Azerbaijan, Rovnag Abdullayev
Rovnag Abdullayev
Rovnag Ibrahim oglu Abdullayev is the director of the SOCAR oil company and has been president of the Association of Football Federations of Azerbaijan since 2008...
and CEO of Gasprom, Alexei Miller
Alexei Miller
Alexey Borisovich Miller is Deputy Chairman of the Board of Directors and Chairman of the Management Committee of Russian energy company Gazprom, Russia's largest company and the world's biggest natural gas producer....
, finalized the deal. The agreement oversees the exports for 2010-2014 with a potential for extension.
Azerbaijani natural gas would be transported via via Baku-Novo Filya pipeline, which was previously used for transporting of natural gas from Russian to Azerbaijan, until 2007, when the shipments were stopped by Azerbaijan as a result of internal self-sufficient production. On January 21, during the meeting between Alexey Miller and Rovnag Abdullayev Gasprom expressed its willingness to purchase more gas from Azerbaijan. The parties agreed to double the amount of gas to be transport during 2010 from initially planned 500 million cm to 1 billion cm and yet increase the amount to 2 billion cm in 2011.
Starting from 2007, Azerbaijan became exporter of natural gas by starting its shipments to Georgia and Turkey.
Technical features
The overall length of the pipeline is 680 kilometres (422.5 mi), of which 200 kilometres (124.3 mi) in Azerbaijan. The pipe diameter is 1220 millimetres (48 in) and it had original capacity of 13 billion cubic meters of natural gas per year. The operating capacity is around 5 bcm. It has a gas metering station in ŞirvanovkaSirvanovka
Şirvanovka is a village and municipality in the Qusar Rayon of Azerbaijan. It has a population of 1,210. The municipality consists of the villages of Şirvanovka and Zuxuloba....
, built in 2003. In Mozdok, the pipeline is connected with North Caucasus–Moscow line.
Political perspective
Experts argue that the significance of the deal is high both for Azerbaijan and Russia. Russia will be paying Azerbaijan an estimated $350 per thousand cubic meters which is the highest price Russia had ever paid for gas imports from Caucasus and Central Asia (compare to $300 per tcm for Uzbek and Turkmen gas), thus hoping to decrease prospects of other potential gas export projects from or through Azerbaijan such as Nabucco or White Stream.Controlling flows of natural gas to Europe is at the forefront of Russian foreign policy and whether the gas exported to Europe is produced in Russia or is coming from elsewhere through Russia, Russia likes to keep an economic control over Europe thus exerting political pressure on the continent and the West as whole through vital energy exports. Russia's production of natural gas in 2008 equalled to 602 billion cubic meters and 154 bcm of it was exported to Europe and Turkey. A much smaller amount of gas to be received from Azerbaijan at higher prices through the Baku-Novo Filya pipeline and the notion that Russia is charging European importers $280 per thousand cubic meters (much lower than it's willing to pay Azerbaijan), proves Russia's ambitious long term intentions.
Up to 2007, Azerbaijan was a Russian gas importer until country's production of 10.3 bcm per year brought self-sufficiency for internal demand of 8.3 bcm. Azerbaijan's Shah Deniz field is to produce approximately 9 bcm per year, whilst Shah Deniz II is believed to produce 10-12 bcm per year when it becomes operational.
Security
During the 1990s–2000s, the pipeline was attacked several times in Chechenya and Dagestan. On 12 January 2010, the pipeline was targeted at its 496th kilometer by a bomb blast on the branch line supplying DerbentDerbent
Derbent |Lak]]: Чурул, Churul; Persian: دربند; Judæo-Tat: דארבּאנד/Дэрбэнд/Dərbənd) is a city in the Republic of Dagestan, Russia, close to the Azerbaijani border. It is the southernmost city in Russia, and it is the second most important city of Dagestan...
and surrounding regions
Derbentsky District
Derbentsky District is an administrative and a municipal district , one of forty-one in the Republic of Dagestan, Russia. The area of the district is . Its administrative center is the city of Derbent . District's population: 86,494 ;...
in Dagestan, causing fire and leaving 214,000 people without gas supply. Gas supplies from Azerbaijan by the main trunk line continued by reduced volume.
See also
- Shah Deniz gas fieldShah Deniz gas fieldShah Deniz gas field is the largest natural gas field in Azerbaijan. It is situated in the South Caspian Sea, off the coast of Azerbaijan, approximately southeast of Baku, at a depth of . The field covers approximately . The Shah Deniz gas and condensate field was discovered in 1999...
- Baku–Tbilisi–Ceyhan pipeline
- Baku–Novorossiysk Pipeline
- Nabucco pipelineNabucco PipelineThe Nabucco pipeline is a proposed natural gas pipeline from Erzurum in Turkey to Baumgarten an der March in Austria diversifying natural gas suppliers and delivery routes for Europe. The pipeline attempts to lessen European dependence on Russian energy...
- White StreamWhite StreamWhite Stream is a proposed pipeline project to transport natural gas from the Caspian region to Romania and Ukraine with further supplies to Central Europe.-History:...
- Nord Stream
- South StreamSouth StreamSouth Stream is a proposed gas pipeline to transport Russian natural gas to the Black Sea to Bulgaria and further to Greece, Italy and Austria. The project is seen as rival to the planned Nabucco pipeline...