south stream offshore pipeline brochure

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The Offshore Pipeline

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Page 1: South Stream Offshore Pipeline Brochure

The

Offshore

Pipeline

Page 2: South Stream Offshore Pipeline Brochure

Contents

The South Stream Pipeline System 4

Preparing to Cross the Black Sea 10

Preserving our Surroundings 18

Construction of the Offshore Pipeline 24

Connecting Sea to Land 34

Safe Gas Transports 44

Benefits 48

Page 3: South Stream Offshore Pipeline Brochure

The South Stream Pipeline System is one of the world’s

most important energy infrastructure projects. Thanks

to the concerted efforts of energy companies from all

over Europe, it will directly connect Central and South-

Eastern European consumers to some of the world’s largest

gas reserves. But South Stream is not just an impressive

construction project: it is first and foremost a contribution

to securing Europe’s future energy supply.

The South Stream Pipeline System

Page 4: South Stream Offshore Pipeline Brochure

76 Energy The South Stream Pipeline System

Project Route

403 kmSouth Stream Novi Sad d.o.o.

Gazprom Srbijagas51 % 49 %

380 kmSouth Stream Hungary Zrt

Gazprom MVM Hungarian 50 % Electricity Ltd. 50%

266 kmSouth Stream Slovenia LLC

Gazprom Plinovodi50 % 50 %

46 kmSouth Stream Austria Gmbh

Gazprom OMV50 % 50 %

541 kmSouth Stream Bulgaria AD

Gazprom Bulgarian Energy 50 % Holding 50 %

931 kmSouth Stream Transport B.V.

Gazprom Eni 50 % 20 %

EDF Wintershall 15 % Holding 15 %

A key supply link for Europe

The South Stream Pipeline System consists of one offshore

section and several onshore sections. Gas travelling through this

system will begin its journey in the vast reserves of Gazprom’s

gas grid in Russia. The first section is the offshore pipeline which

begins near Anapa, and will run through the Black Sea, crossing

Turkish waters before landing on the Bulgarian coast, near Varna.

The offshore pipeline will be developed by the international

joint venture South Stream Transport. With enough capacity to

transport 63 billion cubic metres (bcm) of gas each year, the South

Stream Offshore Pipeline will be the largest of its kind.

Page 5: South Stream Offshore Pipeline Brochure

98 Energy The South Stream Pipeline System

The power capacity of 49,000 wind turbines.

The energy equivalent of 34 nuclear power plants.

The amount of gas delivered by almost 700 LNG tankers.

As much energy as 450 oil tankers.

This is enough energy to fully supply 38 million European households.

Securing Europe’s future gas supply Industry experts are in agreement: in both the medium and

long term, the demand for natural gas will grow in the European

Union. The International Energy Agency projects annual European

demand to climb by 18 % between 2011 and 2030. During the same

period, EU gas production is set to fall by 38 %. Therefore, Europe

needs new gas imports and new supply routes to safeguard its

future. Several pipelines already transport gas directly to North-

Western and Eastern Europe from Norway and Russia. However,

South-Eastern Europe is still poorly connected to the grid. This is

where the South Stream System comes in. Capable of delivering

63 bcm of natural gas from Russia directly to the region, it will

ensure stable long-term energy supplies. Moreover, by connecting

to a series of underground gas storage facilities along the route,

as well as the Baumgarten gas hub in Austria, South Stream will

strengthen the reliability of the entire European gas grid. Three

major facilities are located near the start of the pipeline in the

Russian region of Krasnodar, with a planned total storage capacity

of over 16 billion cubic metres. In Europe, storage capacity will

be available in Serbia (Banatski Dvor, 450 million cubic metres),

Austria (Haidach, 2.8 billion cubic metres) and in Hungary, through

en extensive network of storage facilities owned by Hungarian

MVM. Together, these facilities will provide ample reserves to

secure gas supplies all year round, including during unexpected

peaks in demand.

How much is 63 bcm of gas?The South Stream Offshore Pipeline can transport 63 billion cubic metres

of gas each year. But just how does it compare to other options?

Gas: a natural choice for EuropeNatural gas is the most ecologically-friendly fossil fuel we have at our

disposal. Easy to store and transport, both affordable and abundant,

it is the best pairing for renewables as part of a sustainable energy mix.

Burning gas instead of oil reduces CO2 emissions by 20 percent and,

if used as a replacement for coal, by 50-60 percent. Natural gas can

be used in a range of applications, from heating to transport - and gas

power plants require relatively low levels of investment. Moreover, global

gas reserves are estimated to last another 250 years at the current

consumption rate, and the bulk of these are located around the European

continent. As a result, natural gas has become the natural choice

for Europe’s energy supply.

The next section will be developed by South Stream Bulgaria AD,

a joint venture between Bulgarian Energy Holding and Gazprom.

It will be responsible for the 541-kilometre pipeline that runs

overland through Bulgaria to the Serbian border. From there, one

line will head north-west to Hungary before crossing into Slovenia

and ending at the border with Italy. The other will travel west

through Hungary to the Austrian border. The Serbian section

will be developed by South Stream Novi Sad d.o.o., a joint venture

of Gazprom and Srbijagas. They will also construct a branch line

from Serbia. In total, the South Stream Project brings together

nine shareholders in six different joint ventures to help supply gas

to consumers across all of South-Eastern and Central Europe.

With enough capacity to transport 63 bcm of gas each year, the South Stream Offshore Pipeline will be the largest of its kind

Domestic production185 bcm

Imports307 bcm

20112030

Domestic production114 bcm

Additional imports needed: 113–160 bcm

South Stream 63 bcm

Imports307 bcm

bcm — billion cubic metres.

International Energy Agency (2013).

EU gas demand — 492 bcm

Projected demand — 534–581 bcm

“The South Stream pipeline will pump more gas to the Balkans, will increase competition and will be good for Europe”

Bruno Lescoeur — Chief

Executive, Edison and Senior

Executive Vice President, EDF

Page 6: South Stream Offshore Pipeline Brochure

The offshore pipeline through the Black Sea will form

a key link in the overall South Stream Pipeline System.

An underwater pipeline has many advantages over other

transportation methods and we have designed a pipeline

that will be both safe and reliable. The pipeline will set new

industry standards in terms of pipe specifications, transport

capacity and sea depth, which of course presents a set

of unique challenges. Through careful planning and research

we have chosen a route which will minimize our impact

on the environment and allow safe pipeline installation.

Preparing to Cross the Black Sea

Page 7: South Stream Offshore Pipeline Brochure

1312 Planning Preparing to Cross the Black Sea

Finding new solutions together The foundations for the South Stream Offshore Pipeline were laid

in 2007, as Russia’s Gazprom and Eni from Italy agreed to work

on a new gas supply line to South-Eastern Europe. Feasibility stud-

ies for the route began in 2009. The following year, French compa-

ny EDF became the third shareholder, followed by Wintershall of

Germany in 2011, when the joint venture South Stream Transport

was founded. At its headquarters in Amsterdam, The Netherlands,

South Stream Transport brings together industry experts from all

over the world to realize this ambitious project.

The South Stream Offshore Pipeline will be laid on the bottom

of the Black Sea, as deep as 2,200 metres. At this depth, the Black

Sea exerts an immense water pressure of over 2 million kilograms

per square metre – the equivalent of 12 jumbo jets pressing down

on the seabed. In 2012, South Stream Transport commissioned

INTECSEA B.V. of the Netherlands to design a pipeline system

that could transport large volumes of gas across this challenging

environment. They analysed the seabed, assessed possible routes

and looked at materials and equipment specifications as part

of the Front End Engineering and Design (FEED) that forms

the basis of the Project.

The engineers created a solution that addresses both transport

capacity and the tremendous external pressure at once. The system

was divided across 4 separate gas pipelines, each with a diameter

of 81 centimetres. Benefitting from the latest techniques in steel

production and high-precision pipe manufacturing, they were able

to design strong pipes with a wall thickness of 39 mm. The design

allows the production of pipes in the large quantities that are nec-

essary – over 300,000 pipes will be used in total. At the same time,

the pipeline will not only be strong enough to withstand the high

external water pressure, but it can also resist an internal design

pressure of 300 bar, thus enabling safe transport of large volumes

of natural gas.

“The pipeline will provide reliable gas supplies to compa-nies and households in Central and South-Eastern Europe”

Dr. Oleg Aksyutin — CEO, South

Stream Transport B.V.

Smaller gas pipelines have been laid before at depths of over 2 kilometres. For example, the Blue Stream pipeline has been transpor ting gas across the Black Sea from Russia to Turkey at a depth of 2,150 met res since 2003. However, the South Stream Offshore Pipeline will be the first 32-inch sized system to be laid below 2 kilometres of water, bringing with it specific challenges in laying the pipeline and coping with the water pressure. The Project will help push the industry to a new standard in offshore gas transportation.Perdido Norte in the Gulf of Mexico, 46 cm

South Stream Offshore Pipeline in the Black Sea,

81 cm

Medgaz in the Mediterranean Sea, 61 cmBlue Stream in the Black Sea, 61 cm

Langeled in the North Sea,

112 cm

Nord Stream in the Baltic Sea,

122 cm

Maximum Depth, m

Offshore length, km

Franpipe in the North Sea, 110 cm

Maghreb-Europe pipeline in the Mediterranean Sea, 56 cm

Trans-Mediterranean Pipeline in the Mediterranean Sea, 59 cm

Greenstream in the Mediterranean Sea, 81 cm

70

210

360

400

610

1150

21502160

2200

2530

100 500 1000

Page 8: South Stream Offshore Pipeline Brochure

1514 Planning Preparing to Cross the Black Sea

Advanced subsea surveysRelying on industry experienceFor the realization of the challenging offshore project, South Stream Trans-

port has one considerable advantage: the experience and expertise of its

Shareholders. As an international joint venture, South Stream Transport B.V.

combines the strengths of four leading energy companies with proven track

records: Russia’s Gazprom, Italy’s Eni, France’s EDF and Wintershall Holding,

a subsidiary of the German company BASF. Wintershall and Gazprom worked

together on the Nord Stream pipeline across the Baltic Sea, the longest sub-

sea pipeline in the world, which was completed in 2012. In 2002, Eni and

Gazprom completed work on the Blue Stream gas pipeline, which runs across

the Black Sea from Russia to Turkey to deliver 16 bcm of natural gas annu-

ally. South Stream Transport employs over 200 people, many of whom have

worked on key projects such as these and the company benefits greatly

from their knowledge and experience.

Underwater filmingUsing a Remotely Operated Vehicle (ROV), it is possible to film in the deep seas to investigate objects in detail and perform a visual inspection of the route. The ROV can also carry other instruments such as a sonar or a magnometer to ensure all relevant objects are found.

Side scan sonar survey Used to create an image of large areas of the sea large areas of the sea floor by scanning up to 500 metres left and right, to investigate any possible obstacles near the route.

Seabed samples Using a range of different techniques, samples are taken from the seabed at different depths. The soil is then analyzed in a laboratory to determine if the seabed is suitable for the gas pipeline laying.

High-resolution seismic surveyA vessel produces a sonic source to make a large blast which hits the sea-bed and propagates under the surface. Surveyors analyse the return pulse to build up a sub sea- soil accoustic image. This helps to analyze the different soil layers of the seabed and is especially helpful in areas were the pipeline will be buried.

Sub-bottom profile surveyA transducer emits a sound pulse vertically towards the seafloor, then a receiver records the return of the pulse. This technique helps create an image of the layers of sediment or rock under the seabed to determine if it is suitable for pipeline laying.

Echo sounding A multi-beam echo sounder is used to emit a broad acoustic pulse, which bounces back onto the seabed in different ways to reveal the seabed profile. From here, a 3D model is formed which shows the depth of the water and shape of the seabed.

Finding the best routeOver 16,500 kilometres of offshore surveys were performed to find

the most suitable path to lay the pipeline across the Black Sea.

Near the coast, the pipeline runs along the relatively shallow part

of the sea called the continental shelf. However, at the so-called

continental shelf break the Black Sea suddenly become deeper

and the seabed plunges from about 80 to over 1,500 metres deep,

creating a considerable challenge for the pipeline route.

After assessing different options, a route was chosen from

Anapa, in Russia to Varna, Bulgaria. Using modern survey

techniques, engineers created a detailed profile of the seabed

and analysed the different soil types. On both the Russian and

Bulgarian slopes the pipeline route must account for deep canyons.

Here, the four pipelines were divided into pairs, to descend down

the slopes along a carefully chosen route. In specific areas, tech-

niques such as underwater bridges, cavern fillings or peak shaving

will be used to ensure a smooth passage along this difficult stretch.

The deep abyssal plain of the Black Sea has its own unique

charac teristics. Due to high levels of hydrogen sulphide, there

is little to no oxygen below depths of 100-200 metres and, apart

from microbes and bacteria, there is no life in deep waters. Howev-

er, the route of the pipeline had to take into account other aspects

such as possible shipwrecks or objects of historical value, as well

as potential fault lines or geological structures. Little was known

about the abyssal plain, and a range of survey techniques were

applied to map out the best route for the pipeline.

Page 9: South Stream Offshore Pipeline Brochure

1716 Planning Preparing to Cross the Black Sea

January 2014EUROPIPE, OMK and Severstal awarded contracts for production of pipes for line 1

DNV-GL assigned for the indepen-dent certification of pipeline safety

February 2014Approval of the Bulgarian Environ-mental Impact Assessment (EIA)

March 2014Saipem contracted for construction of first offshore pipeline

March 2014Marubeni-Itochu & Sumitomo, OMK and Severstal awarded contracts for production of pipes for line 2

Approval of the Russian EIA

April 2014Start of pipe productionAllseas contracted for construction of second offshore pipeline

July 2014Approval of the Turkish EIAOnshore construction permit granted in Russia, start of landfall construction

August 2014Conclusion of Public Consultations on ESIA Reports for Russia, Turkey and Bulgaria

Q4 2014Start of offshore pipe-laying for line 1

Project timelineKeeping the Project on Track

June 2007Italian energy company Eni signs an agreement with Gazprom to join the project

June 2010EDF from France joins the Project

2012INTECSEA B.V. appointed

for the Front End Engineering and Design (FEED)

URS Infrastructure & Environ- ment UK Ltd appointed

for the Environ men tal and Social Impact

Assessment (ESIA)

November 2012Final Investment Decision taken

December 2012Joint celebration of the start

of the South Stream Project during the Welding

the Partnership Event in Anapa, Russia

Q1 2016Landfall construction for all four lines completed in Russia and Bulgaria

December 2016 Second pipeline operational: total transport capacity: 31.5 bcm per year

First pipeline operational: transport capacity of 15.75 bcm per year

March 2011Wintershall from Germany joins the Project

The joint venture South Stream Transport is formed

June 2013Launch of tenders for pipe supply and construction

2009Start of feasibility studies for the South Stream Offshore Pipeline

Q2 2017Third pipeline operational, total capacity: 47.25 bcm per year

Q4 2017Fourth and final pipeline con nected, total capacity: 63 billion cubic metres per year

December 2015First pipeline operational: transport capacity of 15.75 bcm per year

Page 10: South Stream Offshore Pipeline Brochure

An underwater pipeline has many advantages in terms

of safety and reliability. But what about South Stream Trans-

port is committed to developing the Project in an environ-

mentally and socially responsible manner, in line with

national, international, and EU legislation. The Company

has invested more than 270 million euros in safe pipeline

design, surveys and environmental studies. Moreover,

local communities, NGOs, government experts and other

stakeholders have been asked to provide feedback during

the development of the Project, so that their input could be

considered in the design. Our aim is to lay and operate

the pipeline with minimum disturbance to the environment

and people.

Preserving our Surroundings

Page 11: South Stream Offshore Pipeline Brochure

2120 Environment Preserving our Surroundings

Putting the еnvironment first: EIA & ESIASouth Stream Transport’s approach to protecting marine

and animal life and the lives and livelihoods of the people around

the Black Sea, is based on two processes: Environmental Impact

Assessments (EIA), and Environmental and Social Impact Assess-

ments (ESIA). These studies help us to learn more about the envi-

ronment and how we can ensure that no significant harm is caused

by the Project.

The EIA ensures that the Project in line with environmental

legislation in Russia, Turkey and Bulgaria. Running in parallel to

this is the ESIA, which provides more details on social aspects. Both

processes also ensure that the Company meets the expectations

of international finance institutions, which are committed to only

fund infrastructure Projects that meet high international standards.

Altogether, more than a dozen companies and over 80 industry

experts are a part of the EIA and ESIA program.

“The lack of oxygen on the sea-bed means that even very old shipwrecks may be extraordi-narily well preserved”

Dr. Kalin Dimitrov — National

Institute of Archaeology

ot the Bulgarian Academy

of Sciences

Working together for responsible Project planningIn 2012, South Stream Transport hired URS Infrastructure & Envi-

ronment from the United Kingdom to carry out the environmental

studies as part of the ESIA program. The process started with a “scop-

ing” stage during which key environmental or socio-economic issues

were identified. The result of these preliminary studies were pub-

lished and discussed with experts and the local communities in Rus-

sia, Turkey and Bulgaria. This gave us a better view of the situation,

so that all potential aspects could be taken into account in the ESIA

process.

In the next phase, URS developed detailed EIA and ESIA Reports.

These provide a comprehensive assessment of the local environment

and the potential impact of the Project. For example, the Bulgarian

EIA Report contained over 5,000 pages of data and more than

200 environmental protection measures. South Stream Transport

organised another round of public meetings in the region of Anapa

in Russia, and around Varna, in Bulgaria, to gather people’s feedback

on these reports and the pipeline Project. Public meetings were also

held in Turkey, where special attention was paid to the fishing indus-

try, as more than 470 kilometres of the pipeline route lie within the

Turkish Exclusive Economic Zone of the Black Sea.

Based on these studies, numerous protection measures are imple-

mented in the design and construction of the South Stream Offshore

Pipeline. As a result, the Project is not expected to have any signifi-

cant impact on the environment, people’s livelihoods or on cultural

heritage.

How does an impact assessment work?

The Project is not expected to have any significant impact on the environment, people`s livelihoods or on cultural heritage

What does the environment

currently look like?

Plans are adapted until

the Project is no longer

expected to have a signi ficant

impact on the environment

What can we do to decrea se

the negative impacts, and

increase potential benefits?

How will the planned project

impact the environment? Will

any damage occur? What are

the benefits?

Page 12: South Stream Offshore Pipeline Brochure

22 Environment Preserving our Surroundings

Preserving Pasha Dere beachIn Bulgaria, the pipeline crosses the beautiful Pasha Dere beach as it reaches land. In line with standard practice, the original design involved digging a trench to lay the pipeline and then bury it and reinstate the beach. This would have closed off large parts of the beach during construction and involved digging up the dunes. During meetings with local communities however, it became clear how important Pasha Dere was, and many people felt that greater care should be taken to protect the beach. Therefore, South Stream Transport opted to change the design and to drill four micro-tunnels more than 20 metres below the sur-face. This method is more complex and expensive than trenching, but it makes it possible to construct the pipeline without affecting the beach, which will remain open to the public throughout construction work.

Protecting the Black Sea’s cultural heritageOne of the remarkable characteristics of the Black Sea is that there is little to no oxygen below depths of around 100-200 metres due to high levels of hydrogen sulfide. While this is not good for fish and sea life, it is good news for archeologists. Due to the lack of oxygen and bacteria, shipwrecks and other underwater items of cultural importance barely decay in the deep sees and are often well preserved, even after hundreds of years. South Stream Transport is one of the first companies ever to survey the entire Black Sea bed in a 500-metre corridor spanning an area from the Russian to the Bulgarian shore. These surveys have helped find a number objects of potential cultural importance, including ship wrecks that may date as far back as the late Byzantine period. Where needed, the pipeline route has been carefully adjusted to avoid such sites by at least 150 metres, so that they are fully preserved and may one day help to increase our knowledge of the Black Sea region.

Protecting the Environment: 4 Case Studies

23

Anapa’s Nikolsky tortoises and junipersThe environmental studies in Russia showed that special attention had to be paid to a number of protected species, including the Nikolsky tortoise population around the Russian landfall and local juniper trees. Before the start of construction activities, we made sure that tortoises were carefully moved out of the construction area to the nearest suitable habitat. Temporary fences were then placed around the building site to prevent the tortoises returning during construction. Underground tunnels are used in key places to allow them safe passage below the construction corridor. For juniper trees, a survey was conducted in December 2013 to find and record the coordinates of protected plants within the construction area. In total, over 200 protected plants were tagged by a special field team. These were then carefully dug out and translocated to another area. Special attention was paid to their size and orientation towards the sun to ensure they were planted properly. Moreover, new junipers will be brought in from a tree nursery after construction is complete to offset the loss of vegetation during construction. In summary, we aim to leave behind more protected trees than we found.

Anchovy populations in Turkish watersThe South Stream Offshore Pipeline passes through the Black Sea at a distance of more than 110 kilometres off the Turkish shore, at a depth of over 2 kilometres. As a result, the pipeline is hardly expected to have notable environmental and social impacts in Turkey. However, during consultations, the fishing communities and experts raised concerns about anchovies. Anchovies migrate around the Black Sea in large schools and are an important stock for the Turkish fishing industry A fisheries study was conducted with the help of fishery cooperatives and academic experts in Ankara, Trabzon and Samsun to examine the migratory routes of commercially important fish species. The study concluded that the pipeline will not impact fish migrations. For example, anchovies migrate across a very large area in a corridor about 125 kilometres wide in fast-moving schools. The construction vessel, which only moves at a speed of roughly 2.75 km a day, will hardly affect this migration. Any noise generated from the vessel would only stretch to approx. 500 metres and anchovy schools can easily avoid this radius, as they would with other large vessels in the Black Sea. The findings of the study were included in the Turkish ESIA Report which was presented to stakeholders in July 2014.

Page 13: South Stream Offshore Pipeline Brochure

Engineering design, route surveys and the environmental

studies form part of the ground work for the construction

of the South Steam Offshore Pipeline. In the next phase,

over 300,000 pipe joints will be produced, fabricated and

individually tested. The pipes are welded together onboard

specialized pipe-laying vessels, and laid on the bottom

of the Black Sea in four strings of 931 kilometres each.

Our engineers have teamed up with the best manufacturers

to ensure that the pipes are strong enough to withstand

the high water pressure at bottom of the Black Sea and

some of the world’s biggest pipe-laying vessels are involved

in offshore construction. To ensure safety, our construction

processes are not only monitored by our own inspectors

but also by third-party experts, to ensure best practise

at all times.

Construction of the Offshore Pipeline

Page 14: South Stream Offshore Pipeline Brochure

2726 Technology Construction of the Offshore Pipeline

Quality pipes through rigorous selectionWhen complete, the South Stream Offshore Pipeline will consist

of four parallel pipelines, each capable of delivering 15.75 billion

cubic metres (bcm) of gas to Europe each year. A single line will be

constructed from over 75,000 individual pipe joints. Each pipe joint

has an external diameter of about 81 centimetres and weighs in at

around 9 tonnes. The walls of the pipeline are made up of almost

four centimetres of high-quality carbon manganese steel. During

production, the steel is heat-treated to improve the mechanical

characteristics of the pipe that are required to withstand the huge

external pressure. Pipes laid closer to the shore are coated in con-

crete for added stability and protection against marine activities.

The pipe manufacturers had to undergo a rigorous selection

process to prove that they were up to the job. To qualify as a supplier

for South Stream Transport, a company has to produce multiple

samples of pipe according to our exact specifications. The samples

are then judged on their quality and strength, whereby the utmost

utmost attention is paid to the precision of the manufacturing

process.

Moving into the production phase, the process is no less

stringent. Each pipe is repeatedly measured and inspected using

ultrasound and x-ray scans to rule out defects. Before it leaves

the factory, each pipe is filled with water at a high pressure to verify

whether it is genuinely strong enough to form part of the South

Stream Offshore Pipeline. In addition to experienced factory super-

visors, third-party inspectors are on hand to examine and certify

the quality of the fabricated pipes.

“We have monitored production in recognized pipe mills and tested more than 100 sample pipes to determine which pro-ducers are qualified”

Grégoire Richez — Commercial

Director, South Stream

Transport B.V.

Cross-section of a single pipe

Pipes laid in shallow waters are coated with 5 to 8 centimetres of concrete for additional stability

Steel pipe wall 3.9 сm

Concrete coating

Each pipe joint has an external diameter of about 81 cm and weighs in at around 9 tonnes

1,200 cm

81.3 cm

Internal epoxy coating against friction

External coating of three-layer polypropylene against corrosion

Page 15: South Stream Offshore Pipeline Brochure

2928 Technology Construction of the Offshore Pipeline

Stringent safety and certificationFrom our earliest project drafts and designs, all the way to the hard work

of constructing and operating the offshore pipeline, safety and reliability

remain our top priorities. Our first surveys laid the foundations for this,

as we identified a secure route that avoided difficult terrain and sensitive

areas. Material and process standards are also integral to our project and

we have a commitment to testing each joint of the pipe before it goes into

the water. During pipe fabrication, our engineers are on hand to oversee

each stage of the process at the manufacturers’ facilities.

But when it comes to quality and safety standards, don’t just take

our word for it: our work will be monitored from start to finish by the world’s

leading offshore classification society DNV GL. This independent Norwe-

gian foundation specializes in verifying and safeguarding the quality of key

maritime infrastructure projects throughout the world. DNV GL experts val-

idate the entire pipeline design and inspect fabrication, laying and pre-com-

missioning works. They are present at the factories and onboard the vessels

to perform specific checks of bevelling, welding, non-destructive testing,

field joint coatings and installation parameters. Inspectors make sure the

lay corridor is correct and review our data. When DNV GL is satisfied that

its high standards have been met it issues a Certificate of Conformity which

shows that the pipeline complies with the DNV-OS-F101 code. These

measures ensure that the pipeline is safe and ready for operations.

Our work will be monitored from start to finish by the world’s leading offshore classification society DNV GL

From pipes to pipeline After production, the individual pipes are brought to storage yards

at the harbours of Varna and Burgas, in Bulgaria. From there, they

are directly transported by ship to a special pipe-laying vessel.

The Italian company Saipem, which also constructed the Blue

Stream and Nord Stream pipelines, has been contracted to construct

the first pipeline. It provides two specialized vessels for the task: the

Castoro Sei and Saipem S7000. Line 2 will be laid by Allseas, which

will deploy the world’s largest pipe-laying vessel, the Pieter Schelte.

This newly developed vessel has a total length of 455 metres and

a main firing line featuring six welding and coating stations.

On board, the pipe joints are aligned and welded. Each weld

will be scanned with an automatic ultra-sound system, allowing

for even the slightest defect in the joint to be detected. Additionally,

polypropylene coating protection will be applied on the welded

area for protection against external corrosion. The newly welded,

coated and inspected pipeline section is then lowered into the wa-

ter. Slowly but surely, the pipe-laying vessel will traverse the Black

Sea adding new sections to the pipe string as it moves. Operating

around the clock, these vessels typically lay as much as 3 kilometres

of pipeline each day. Pipes for the South Stream Offshore Pipeline are stored at the Port of Burgas before being welded together offshore

Page 16: South Stream Offshore Pipeline Brochure

3130 Technology Construction of the Offshore Pipeline

Accommodation for crew of 725

Touch down monitoring by ROV

Beveling stationWelding station

J-lay tower to load quad-joint pipes of 48 metres

Non destructive testing and field joint coating

Capacity to store over 600 pipes

Overall length: 197.95 mBreadth: 87 mDepth to main deck: 43.5 m

J-Lay

With this technique, the pipes are welded vertically

in a tower and then lowered into the sea in the shape

of a large “J”. This method can only be used in deeper

waters.

Construction of an offshore pipeline

1. Pipes are supplied to the vessel continuously from storage yards on the Bul garian coast.

2. On board, the pipe ends are bevelled to prepare them for welding.

5. A coating is applied to fill the joint and provide extra protection.

3. The pipes are welded to the main string with high precision by auto-mated machines.

4. The welds are scanned with ultra-sound to verify there are no defects.

Page 17: South Stream Offshore Pipeline Brochure

3332 Technology Construction of the Offshore Pipeline

S-Lay

Using this method, the pipes are welded together horizontally,

and then lowered on the seabed in an “S” shape. This method

can be used in both shallow and deep waters.

Accommodation for crew of 571

Removable bevelling station

Pipe conveyors transfer double joint pipes to the removable bevelling station, from where they enter the main firing line underdeck

Double-joint factory with 2 welding stations to connect 12 meter pipes together

Length overall (including stinger): 445 mBreadth: 124 mDepth to main deck: 30 m

Cargo capacity to store up to 3,000 pipes

Pipelay stinger/ramp

Line 2 will be laid by the world’s largest pipe-laying vessel: the Pieter Schelte

Page 18: South Stream Offshore Pipeline Brochure

The subsea section of the South Stream Offshore Pipeline

will connect to onshore facilities near the coast in both

Russia and Bulgaria. As the pipeline approaches these

landfall sites, our priority is to preserve the shore areas

and to ensure the system can operate safely. The pipeline

will cross the shore on both sides of the Black Sea through

underground micro-tunnels. This will greatly limit

disturbances to the surface areas above. When both these

shore crossing sections and the subsea stretch of the

pipeline are complete, the separate components are welded

together using a so-called above-water tie-in procedure.

Connecting Sea to Land

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3736 Key Link Connecting Sea to Land

Side view of pipeline

Approaching landFor most of the offshore route, the pipelines will rest deep at 

the bottom of the Black Sea. But in shallower coastal waters there

can be a stronger current on the sea bottom, in addition to potential

disturbances from anchors or fishing boats. For added protection

at these locations, we coat the pipeline in 5 to 8cm of heavy-weight

concrete. Moving even closer to the shoreline, sections of the pipeline

will be installed in trenches entirely below the seabed. The trenches

will be at least 2.5 m deep and the excavations are carefully covered

over again after the pipeline is laid. But to cross the shoreline in both

Bulgaria and Russia, a more advanced solution was applied.

“I have visited Pasha Dere beach in Bulgaria many times for this project. It is a beauti-ful beach and we are working very closely with South Stream so that it stays that way!”

Antonio Santaniello — Project

Manager, URS, Environmental

Consultants to South Stream

Transport

Compressor station (Gazprom)

LandfallFacilities

LandfallFacilities

Compressor station (South Stream Bulgaria AD)

Deep-water pipeline

Black Sea2.2 km

Bulgarian - TurkishEEZ Boundary

Approx 230 km Approx 470 km Approx 230 km

Turkish - RussianEEZ Boundary

Bulgaria Russia

Underground pipeline Micro-

tunnelsPipeline buried in shallow waters

Pipeline buried in shallow waters

Micro- tunnels

Underground pipeline

Crossing the shore via micro-tunnelsThe Russian and Bulgarian landfalls are both ecologically excep-

tional in their own way. In Russia, the route arrives at particularly

steep, rocky cliffs along the coastline, running behind a narrow

stretch of beach. In Bulgaria, the four pipelines come ashore at

the beautiful sandy Pasha Dere beach, some 10 kilometres from

the city of Varna. Our engineers developed a solution to cross

the shorelines without impacting the surface, using so-called

micro-tunnels. This method is slightly more complex and expensive

than the more traditional way of excavating an open trench to bury

the pipes, but it ensures installation of the pipelines without any

construction work on the beach itself.

Four small tunnels will be drilled under the shore to accom-

modate the pipeline. In Russia, these will have a length of about

1.4 kilometres and in Bulgaria, they are just over a kilometer

long. To construct a micro-tunnel, an entry pit of about 10 metres

is excavated. Then, an automated boring machine starts drilling

a small tunnel, guided remotely from a container cabin next

to the entry pit. During drilling, an experienced operator will

carefully guide the machine, taking into the account the different

types of soil to maintain the correct path. Behind the automated

boring machine, pre-fabricated concrete segments are inserted

to provide stability and form a tunnel. An exit pit is excavated

in the sea at the end of the tunnel and when the boring machine

emerges into the pit, it is retrieved by a vessel.

Afterwards, the pipelines themselves are pulled through the

tunnels. The pipe is prepared onboard a pipe-laying vessel, where

individual pieces of pipe are welded together into one string. As the

pipe becomes longer, it will be pulled slowly through the micro-tun-

nel by an industrial-sized winch located onshore. Once this stage

is complete, we will refill and reinstate the entry and exit pits of

the tunnel. At both the Russian and Bulgarian shores, the pipeline

will run deep under the surface, out of sight and earshot of local

residents.

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3938 Key Link Connecting Sea to Land

1. An entry pit of about 10 metres in depth is excavated.

4. The tunnel ends about 400- 500 metres offshore, at least 3 metres under the natural seabed.

2. An automated tunnel-boring machine starts drilling a small tunnel.

5. After the tunnel is completed, the pipeline is pulled through the tunnel. Onboard a pipe-lay-ing vessel, individual pieces of pipe are welded together into one string. As the pipe becomes longer, it is slowly pulled through the tunnel by a large winch located onshore.

3. Pre-fabricated concrete segments are pushed into the tunnel to pro-vide support as it gets longer.

450 m

580 m

South Stream Transport engineers developed a solution to cross the shore-lines without impacting the surface, using so-called micro-tunnels

Example of micro-tunnel construction in Bulgaria

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4140 Key Link Connecting Sea to Land

Landfall facilitiesThe South Stream Offshore Pipeline is connected at both ends

to underground pipeline systems via landfall facilities. At these

facilities, we will closely monitor the temperature, pressure and

composition of the gas, ensuring both quality and environmen-

tal safety. In Russia, we will measure how much gas goes into

the pipeline, while metering systems in Bulgaria track how much

gas is transferred out of the offshore section and into the under-

ground pipelines of South Stream Bulgaria AD.

In Bulgaria, the pipelines will run parallel to the existing Galata pipe-line. Some two kilometres inland, they will connect to the project being developed by South Stream Bulgaria AD after passing through landfall facilities.

At the Russian coast, close to the city of Anapa, the South Stream Offshore Pipeline will connect to Gazprom’s extensive Russian gas network, providing direct access to the country’s vast gas reserves. Gazprom will expand its supply capacities to guarantee sufficient gas deliveries to the South Stream Offshore Pipeline. Here, Gazprom will also construct the Russkaya compressor station, an advanced compression facility designed to provide the pressure needed to transport gas 931 kilometres across the Black Sea.

Our staff closely observe gas flows into the pipeline from

a central control room 24 hours per day. In case of emergency, shut-

down valves can safely stop all gas flows into the pipeline system.

The landfall facilities will also serve as a base for maintenance

operations. In addition to regular on-site checks and testing, a full

inspection of the pipeline will take place approximately every

five years. During these checks, South Stream Transport will send

special pipeline inspection gauges (PIGs) through the pipes all

the way from the landfall facilities in Russia to Bulgaria to check

the pipeline from within.

5Lines coming to the South Stream Offshore Pipeline

South Stream Onshore Pipeline Russia

South Stream Onshore Pipeline Bulgaria

Compressor station

Receiving terminal

Galata Pipeline

Existing Galata processing plant

South Stream Offshore Pipeline

Micro-tunnels

Landfall facilities

Gazprom United Gas Supply Lines

Gazprom Russkaya CS

Entry point for Pipeline Inspection Gauge (PIG)

Shut-down valves

Metering equipment

Venting tower (in case gas release is required)

Lines coming from the South Stream Offshore Pipeline

South Stream Onshore Pipeline Bulgaria

Maintenance and staff buildings, control room

South Stream Offshore Pipeline

Micro-tunnels

Landfall facilities

National Protected Area

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4342 Key Link Connecting Sea to Land

Preparing for operationsAfter the landfall sections are completed, the pipelines must pass

a series of pre-commissioning tests. First, we use pipeline inspection

gauges (PIGs) and treated seawater to clean and gauge the pipeline.

Afterwards, the pipelines are filled with water to a pressure well

in excess of the design limit in order to test the strength of the pipe-

line and check for any leaks. If the test is successful, the pipelines

will be dewatered and then dried.

Once pre-commissioning is complete, the near-shore sections

are connected to the deep-water strings of the pipeline to form

a single, continuous pipeline. This is done using an above-water

tie-in process. Divers attach cables to the separate lines which

are then hoisted out of the water by cranes mounted on a barge.

The two lines are then aligned on a platform and cut horizontally

at one point. Construction staff then bevel each end to facilitate

a smooth connection. Finally, the two pipes are welded together

and the weld is tested with ultrasound before the joint is lowered

into the water and the pipeline is completed.

Once pre-commissioning is complete, the near shore sections are connected to the deep-water strings of the pipeline to form a single, continuous pipeline

Underground connectionsThe landfall facilities and the underwater pipeline will be connected by

a short section of underground pipeline 2-3 kilometres in length. These

underground sections of the South Stream Offshore Pipeline will be con-

structed in several stages.

A strip of about 80 metres above the four pipelines will be desig-

nated a ‘Right of Way’ area, where deep-rooting vegetation such as

trees should not grow, though small plants such as vines could be

planted.

7. The pipe is lowered into the trench. 8. The pipe is buried at a depth of at least 1.5 metres.

9. The original top-soil is restored.

2,0 m

1. A strip of land 60-120 metres wide will be temporarily cleared to serve as a construction corridor.

2. The top-soil will be stored so that it can be put back in place after construction.

3. Trenches are dug at a depth of at least 2 metres.

10. New vegetation will be planted in the construction corridor.

4. Individual pipes are laid out and bent into shape if needed.

5. The pipes are welded together. 6. All welds are inspected using ultra sound.

Page 23: South Stream Offshore Pipeline Brochure

Upon completion of the fourth line in 2017, the South

Stream Offshore Pipeline will enter its operational

phase. Advanced control and monitoring systems will be

established at both ends of the pipeline before the Project

is brought into service. Gas pressure, temperature, flow,

and composition will be closely watched at the landfall

facilities, with additional remote monitoring of the overall

pipeline system from a central control room in Amsterdam.

These systems will ensure the safe and reliable passage of

natural gas to European homes and businesses, seven days

a week, 24 hours a day.

Safe Gas Transports

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4746 Operations Safe Gas Transports

Central control for safe operationOffshore gas pipelines are an inherently safe means of transport-

ing energy: large-diameter pipelines have been operating safely

since as far back as the 1950s. At South Stream Transport, we aim

to maintain this record through stringent monitoring of our off-

shore pipeline.

Day-to-day operations of the South Stream Offshore Pipeline

will be managed from a central control room in Amsterdam,

The Netherlands. That system will be connected to the landfall

sites in Russia and Bulgaria, where the underwater and onshore

sections of South Stream meet. The landfall sites feature metering

equipment, Emergency Shutdown (ESD) valves, block valves (three

per pipeline), fire and gas detection systems and other auxiliary

systems for safeguarding the stability and safety of gas transport.

Two independent communication links will connect the equip-

ment in Russia and Bulgaria with the central control room, and

a satellite link will provide a backup. In addition, a fully-functional

centre will be established at a nearby location to take over in case

of unforeseen problems.

Our control room operators will be in constant contact with

the gas supplier and operators upstream in Russia and downstream

in Bulgaria. Sensors and valve technology allow for the automatic

shut-down of the gas flow, should an emergency arise. In such

instances, the valves cannot be opened again until our engineers

have checked the problem and returned the pipeline to its normal

operating conditions. The gas flow will also be monitored.

The pipeline will be monitored from a control room, similar to this one used for the Nord Stream Pipeline. Image courtesy of Nord Stream AG.

Operations of the South Stream Offshore Pipeline will be managed from a central control centre in Amsterdam, The Nederlands

High-pressure gas transportsWhen fully operational, each of the four offshore pipelines can

transport up to 15.75 billion cubic metre (bcm) of gas per year —

63 bcm in total. This is the equivalent of more than 40 million cubic

metres of gas flowing through each pipeline per day. The pressure

required to transport these vast amounts comes from the Russkaya

Compressor Station in Russia, which is built and operated by Gazprom.

The pipeline is built to withstand an internal pressure of up to

300 bar, called the ‘design pressure’. However, the actual operating

pressure will be somewhat lower, to allow for an additional safety

margin. At the inlet in Russia, gas is pumped in with a maximum

pressure of about 284 bar. The offshore pipeline operates without

any interim compressor stations, so the pressure drops steadily during

the 931-kilometre journey. Once it reaches the Bulgarian landfall

facilities, the operational pressure will be less than 100 bar.

“Each part of the pipeline is de-signed, and will be developed, to ensure safety”

Andrey Fick — Technical Director,

South Stream Transport B.V.

Inspecting the pipeline for safety and reliabilityWe will implement an inspection plan to ensure that the pipeline, once fully

operational, is functioning safely and reliably. The condition of the subsea

pipeline will be monitored on a regular basis using Remotely Operated

Vehicles (ROVs) equipped with sonar scanning devices and visual inspection

cameras. This technology allows us to scan the pipeline exterior for any

signs of damage. We will also check the pipeline from the inside, by running

pipeline inspection gauges, or PIGs, through it. The PIGs enter the pipeline

at the Russian landfall facilities and are propelled by the gas flow towards

the landfall facilities near Varna, where they are removed via special PIG

receivers. Critical sections of the pipeline route, including slopes, trenches,

anomalous seabed areas, and the continental shelf break, will be surveyed

more frequently: first annually, and then as often as necessary based on

monitoring results. No repairs are expected during the pipeline’s 50-year

lifespan, but an emergency maintenance plan is in place so that we can act

immediately and effectively if called for.

Pipeline Inspection Gauge (PIG)

Page 25: South Stream Offshore Pipeline Brochure

4948 Benefits Benefits

“We are fully supporting the project. It strengthens supply security in Europe and is economically and technically feasible”.

Dr. Rainer Seele, Chairman of the Board

of the Executive directors of Wintershall

Securing Europe’s future energy supplyNatural gas is the best choice for securing Europe’s future energy pros-

pects. It is climate-friendly, efficient, and abundant. Not surprisingly,

EU natural gas demand is projected to rise from its 2009 level of 508 bil-

lion cubic metres (bcm) to 626 bcm in 2030. At the same time, European

production is expected to fall by almost 50 % in the coming two decades.

With an annual capacity of 63 bcm of natural gas sourced directly from

Russia’s vast gas reserves, South Stream is a key infrastructure project

in tackling Europe’s looming supply shortage.

Cutting emissions and bridging to renewablesThe South Stream System will help EU member states to meet their

CO2 reduction targets. Market studies have shown that increasing

the share of gas in the EU energy mix by only 1 %, with a similar

reduction in coal, can reduce CO2 emissions by 3 %. In addition,

natural gas is the ideal fuel for use alongside alongside renewables,

as it provides an affordable and flexible source of power during

periods when solar or wind energy may be low.

Local investments and job creationAs part of the South Stream Project we will make considerable financial

and infrastructural investments and create important opportunities for

local communities. The entire South Stream Project will create around

10,000 employment positions across Bulgaria, Serbia, Hungary, Slove-

nia, Austria, the Netherlands and Russia. Total investment in local econ-

omies will reach over 16 billion euros. The majority of this funding will

come from the group of international energy companies involved in the

Project as shareholders and from international banks who seek to invest

in a long-term infrastructure project such as South Stream.

Experienced shareholders and industry expertsWith the vast experience and proven track records of its Sharehold-

ers ENI, EDF, Wintershall and Gazprom, South Stream Transport

is in a unique position to build the ambitious deep-water pipeline

in a safe and responsible way. Furthermore, we have commissioned

the services of a range of experienced firms such as the Dutch compa-

ny INTECSEA, DNV GL of Norway, Saipem of Italy, Swiss-based Allseas

and URS Infrastructure and Environment from the UK. They will help

us implement the Project in a safe, responsible way.

Putting the environment firstEnvironmental planning and protection form an integral part of the

South Stream Offshore Pipeline. Our EIA and ESIA studies ensure that

the project complies with national legislation in Russia, Bulgaria and

Turkey and the rigorous standards set by international finance institu-

tions. South Stream Transport has commissioned independent ecologists

to study plants, birds and other wildlife along the pipeline route and

to provide us with the information we need to avoid damaging unique

and ecologically important habitats. In addition, we have held meetings

with local communities, NGOs, government experts and other stakehold-

ers to help us understand and address the concerns of onshore residents.

Setting new standardsThe technical and material specifications of our pipeline are setting

new standards for the gas transport industry. The South Stream Off-

shore Pipeline will be the largest system ever to be laid at depths as low

as 2,200 metres. To ensure that the highest international standards are

maintained from one end of the pipeline to the other, inspectors from

Norway’s DNV GL are on hand to perform rigorous third-party checks.

Their staff are present onboard vessels, in pipe mills and on coating

yards to ensure best practices are met.

Page 26: South Stream Offshore Pipeline Brochure

Designed by Art. Lebedev Studio

Page 27: South Stream Offshore Pipeline Brochure

Find out moreAbout the South Stream Offshore PipelineWe hope this brochure will help you learn more about the planned

underwater pipeline, which will carry gas across the Black Sea from

Russia to Bulgaria. Here you will find information on why the pipe-

line is needed, how it will be built and what we will do to minimise

our impact the environment.

If you have any questions or comments after reading this

brochure, you can find more information on our website, or reach

us directly via e-mail or post:

www.south-stream-offshore.com

[email protected]

South Stream Transport B.V.

Parnassusweg 809

1082 LZ Amsterdam

The Netherlands

50 % shareholder A company from Russia

20 % shareholder A company from Italy

15 % shareholder A company from France

15 % shareholder A company from Germany

A joint venture of four leading energy companies: