SOME PERSPECTIVES ON THE PIPELINE

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Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP84T00109R000100110037-9
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RIFPUB
Original Classification: 
S
Document Page Count: 
13
Document Creation Date: 
December 20, 2016
Document Release Date: 
July 2, 2007
Sequence Number: 
37
Case Number: 
Publication Date: 
February 10, 1982
Content Type: 
MEMO
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PDF icon CIA-RDP84T00109R000100110037-9.pdf1.69 MB
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Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9 SECRET THE DIRECTOR OF CENTRAL INTELLIGENCE National Intelligence Council 10 February 1982 MEMORANDUM FOR: Chairman, National Intelligence Council FROM: Maurice C. Ernst NIO for Economics SUBJECT: Some Perspectives on the Pipeline lac-'~~v 1. The insistence on precise estimates of how much US sanctions could delay completion of the Yamal pipeline indicates a lack of perspective concerning Soviet capabilities and options in gas pipeline construction. Specific estimates of delays are feasible only when comparing technical options involving specific sources of equipment (for example, producing GE rotors in France instead of the United States). In practice Moscow is likely to use a variety of technical options and Western sources of equipment unless the latter are all shut off. This flexibility would presumably mean smaller delays than would occur if only one technical option were involved. 2. Even if Moscow had no access to Western compressors, there is no question that it would be able to make adjustments in domestic production and in its pipeline construction plans. Consider the following: o The USSR builds more long distance gas pipelines than the rest of the world put together; the Yamal line is only one of six planned for construction during 1981-85. o Although the Soviets have found their own compressors to be less satisfactory than some of those built in the West, their compressors do work and may be improving. Since 1978, most Soviet long distance lines have used Soviet-built 10 Megawatt .compressors. The existing line to Western Europe uses Soviet as well as some Western compressors of this size. o Moscow has been developing a 25 Megawatt compressor. It hopes to get Western help, but does not lack technical capability. The USSR is among the world leaders in electric power generation and builds large numbers of effective and reliable, if not efficient, jet engines. There is every reason to believe that the Soviets could develop an adequate large compressor without Western help. It might take more maintenance and use more fuel, but that is characteristic of most Soviet equipment. Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9 Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9 SECRET o The GE compressors on which so much is being written are characterized as including "1950's technology." What the Soviets like is their proven track record and reliability, but that doesn't mean someti~ing else won't do. 3. Even if they have to go it alone, the Soviets almost certainly will build pipelines to expand gas exports to Western Europe. They realize they badly need the hard currency. If they build the Yamal pipeline with their own compressors, there would be greater gas consumption to run the pipeline, and therefore slightly smaller gas sales to Western Europe. The foregone earnings, however, are not massive except when cumulated over many ,years. Completion of such a pipeline need not be delayed if Moscow gives it a very high priority. Some domestic pipelines might be delayed, but perhaps not much since it seems reasonable to expect domestic compressor production to be accelerated beyond planned level. 4. Even if there were substantial delays, Moscow could partially bridge the gap using new domestic pipelines for most of the distance to Western markets. 5. If Moscow could not buy Western compressors, it would still be dependent on Western suppliers for a great deal of pipe. However, France and Italy, which are large potential suppliers of compressors but not pipe, might find buying Soviet gas less attractive. The principal potential attraction of Soviet gas for these countries would then shift from larger export sales to low gas prices. There is little question that Soviet gas is potentially the cheapest source of large amounts of new gas for Western Europe. The cost of producing and transporting Algerian gas is probably less, but Algerian reserves are far smaller than Soviet reserves. Norway has the reserves to supply substantial amounts of new gas in the 1990s, but I suspect that much of the new Norwegian gas would be more expensive to transport than Soviet gas. Consequently, if the West Europeans want to ensure long term supplies of gas at prices low enough to compete with oil in widespread industrial uses, they probably must go to the Soviet Union. This key selling point for Soviet gas will remain even if there are no tied exports of equipment. Even so, French and Italian government enthusiasm for the pipeline might weaken considerably, especially in the face of political criticism. Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9 Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9 Ananalytic Framework (1) Baseline assessment: Soviet capabilities without sanctions: Best case -- Baseline against which other assessments are to be measured -- Need to determine: -- Can contracted gas be delivered by 1984? -- When can 1st leg be completed--84? --86? -- when can full flow be expected? -- What would be specific bottleneck-- -- construction? turbines? (2) Worst case: What can Soviets do in "absence" of Western technology -- Assumes deliveries of pipe -- Assumes availability of certain components which cannot be effectively controlled such as valves. -- Need to determine: -- How dates for completion would differ from baseline case -- How flow would differ -- Would bottlenecks be the same or different -- What are Soviet abilities for: Turbines Compressors Pipe layers Construction & Engineering -- Impact on domestic plans (3) Current situation -- How would current restrictions affect pipeline vis-a-vis baseline case (4) What if only 10 Megawatt turbines were available from the West -- other factors being equal. Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9 Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9 Ananalytic Framework (1) Baseline assessment: Soviet capabilities without sanctions? pest case -- Baseline against which other assessments are to be measured -- Need to determine: -- Can contracted gas be delivered by 1984? -- 4Jhen can 1st leg be completed--84? --86? -- when can full flow be expected? What would be specific bottleneck-- -- construction? turbines? (2) Worst case: What can Soviets do in "absence" of Western technology -- Assumes deliveries of pipe -- Assumes availability o.f certain components which cannot be effectively controlled such as valves. - Need to determine: -- Now dates for completion would differ from baseline case -- How flow would differ Would bottlenecks be the same or different (3) -- What are Soviet abilities for: Turbines Compressors Pipe layers Construction & Engineering -- Impact on domestic plans Current situation -- How would current restrictions affect pipeline vis-a-vis baseline case (4) 4Jhat if only 10 Megawatt turbines were available from the UJest -- other factors being equal. Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9 Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9 Figure 1 USSR: Production of Major Fuels N tural Gas Oil Coal _ Billion M~ -~mtoe AARG1 _ Million tons AAR~ Million tons AARG1 1960 45.3 38.1 147.9 509.6 23.0 10.4 2.5 1965 127.7 105.0 242.9 577.7 9.2 7.8 1.6 1970 197.9 165.4 353.0 624.1 7.9 6.8 2.4 1975 289.3 239.7 603.2 701.3 8.5 4.2 0.4 1980 435.2 360.6 503.2 716.4 7.7 0.8 1.6 1985 Plan 630.0 522.0 630.0 775.0 1 Average annual rate of growth calculated from unrounded numbers. Narkhoz 1980 pp> 156-7. Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9 Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9 Figure 2 Soviet Natural Gas Trunklines of 1,420 mm. Diameter Completed Through 1980: Total Length 17,050 Kilometers (See accompanying map) Northern Route Length (Km~ Medvezh'ye-Punga-Ukhta-Torzhok-Minsk 3,100 Central Route Urengoy - Punga - Nizhnyaya-Tura - Perm - Kazan 2,100 Urengoy - Punga -Nizhnyaya-Tura - Perm 1,520 Southern Route Urengoy-Vyngapur-Chelyabinsk-Petrovsk-Novopskov 3,380 Urengoy-Vyngapur-Chelyabinsk 1,70 "Soyuz" Orenburg-Aleksandrov Gay-Novopskov-Uzhgorod 2,750 Central Asia-Center Shatlyk-Beyneu-Alexandrov Gay-Ostrogozhsk 2,500 1 7 ,~5~ Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9 _ Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9 Aleksandrov Gay Soyuz prenburg C~ m Aral Sea Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9 Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9 Figure 3 Soviet Natural Gas Trunklines of 1,420 mm. Diameter Included in Plan for 1981-85: Total Length, 20,000 Kilometers* (See accompanying map) Northern Route Length_(Km~ Urengoy-Punga-Ukhta-Gryazovets-Moscow** 2,800 Gryazovets-Torzhok-Minsk-Ivatsevichi 1,300 Central Route Kazan-Petrovsk-Novopskov 1,100 Perm-Kazan-Petrovsk-Novopskov 1,650 Urengoy - Nizhnyaya-Tura - Yelets - Kursk 3,500 Urengoy - Nizhnyaya-Tura - Petrovsk - Uzhgorod*** 4,650 Southern Route Chelyabinsk-Petrovsk-Novopskov 1,700 Subtotal 1.6,700 Plus allowance for terrain adjustments, cap- ital repairs and unspecified construction 3,300 20,00 * During the past year, Soviet journals have been inconsistent in their discussion of pipeline routes and distances. The routes shown here must therefore be considered as provisional. ** The Urengoy-Gryazovets-Moscow Ring line was completed in February 1981, and was claimed as the first of seven lines planned for completion in the Eleventh FYP. Subsequent plans refer to the remaining six line. *** This is the so-called "export pipeline." An alternative alignment discussed in Soviet publications is Urengoy-Chelybinsk- Petrovsk-Uzhgorod along the the Southern Route, some ?~0 km. 1 onger. Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9 Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9 ~` ~ , ~ 5 Routes shown should tre considered as provisional. 800 Kilometers 600 Miles Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9 Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9 Figure 4 USSR: Progress of the Gas Trunkline System 1965 41.8 1970 67.5 1975 98.8 1980 132 1985 Plan 180 Length Com ressor Station Power ,000Tc~ _-- ,0~0 M~,---- Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9 Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9 Figure 5 Gas Pipeline Compression and Throughput Natural Gas Pipeline Characteristics Diameter Pressur~ 1 Throughput Ca~acit ~Mi limeters~ Inches) ~K~m ) bi lion m %yrj~ 1020 40 55 8.5 1020 40 75 12.0 1020 40 100 17.0 1220 48 55 13.5 1220 48 75 19.0 1220 48 100 27.0 1420 56 55 20.0 1420 56 75 29.0 1420 56 100 41.0 1 Kg/cm2 is roughly equivalent to "atmosphere." Nonlinear Relation Between Compressor Power and Throughput Compressor-drive Power (Percent of Maximum) Throughput (Percent of Designed Capacity) 8 50 15 60 27 70 44 80 67 90 1(10 10 0 Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9 Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9 Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9 Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9 Ivatsevichi zhgorod Minsk Export pipeline pnep~ Nizhnyaya Tura Approved For Release 2007/07/06 :CIA-RDP84T00109R000100110037-9