Europe to seal the seams in the Ukrainian pipeline

An international consortium presented the Odesa-Brody-Plock oil pipeline project in Poland.

The project stipulates the construction of Brody-Orzechowo oil pipeline with the further use of the existing stretch of the Orzechowo - Plock pipeline and increasing the capacity of the Odessa-Brody leg. The period of planned construction is 18 months. A consortium consisting of three European companies SWEGO PIC (Finland), ILF GmbH (Germany) and KANTOR (Greece) will be extending the Odessa-Brody oil pipeline to the Polish city of Plock (pronounced Plotsk).

In the opinion of Polish experts in the oil industry, the cost of construction of the Brody-Plock stretch could amount to 500 mn euro and the terms of design and research and construction work will last three to four years provided that conditions are favorable.

During the discussion of the business plan, the participants of the meeting admitted that the project is competitive and economically efficient for suppliers and consumers of oil. The project ensures a level of profitability in the first year of operation that is attractive for investors and will grow proportional to the increase in volumes of oil transportation. Representative of the Directorate General on Energy and Transport issues of the European Commission Faousi Bensara stated that Europe expects the oil pipeline to begin operation in 2009.

by Pavlo Berest

Background

In May 2003, Ukraine, Poland and the European Commission signed the Declaration on Supporting the Eurasian Oil Transport Corridor Project. The trilateral EU-Ukraine-Poland working group of experts was set up within its framework for developing the Odesa-Brody-Plock Oil Transportation System.

The issue of developing an infrastructure for ensuring the diversification of oil and gas supplies was agreed within the framework of the EU-Ukraine Plan of Actions. Construction of the Black Sea-Ukraine-Poland oil transport corridor is a key project in the policy of the EU and Ukraine on the issue of security of oil supplies and reinforcing the integration of the energy infrastructures of the EU and Ukraine.

Kyiv Weekly

March 22,2006