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Ukraine and Azerbaijan relations in energy sector remain unchanged

Oil&Gas Materials 4 September 2014 18:27 (UTC +04:00)

Baku, Azerbaijan, Sept. 4

By - Trend:

Liquidation of advisory group on development of the new energy supply routes from Azerbaijan through the territory of Ukraine by Poroshenko's presidential decree is not associated with a change in the energy policy of this country, the general director of the Sarmatia International Pipeline Company (ICC)Sergei Skripka said Sept. 4, responding to a question about the possible impact of the elimination of the ICC on construction works of Brody-Plotsk (Adam's gate). Sarmatia ICC was established on July 12, 2004 by Ukrtransnafta and the PERN Przyjazn Polish company in order to attract investments for the design and completion of Odessa-Brody oil pipeline till Plotsk.

"The elimination of this advisory group under the president of Ukraine is absolutely not related to a change of policy of Ukraine in the field of energy security, the development of relations in this regard with Azerbaijan and other countries. This is solely the result of streamlining the administration of the president and a few changes in work of the State Administration of Ukraine, in which the government, not the president will have more responsibilities on energy issues," Skripka said.

He added that the elimination of this advisory group will not affect the work of the Sarmatia ICC and is not associated with a change of the Brody-Plotsk project plans.

The working group was established in 2011 on the instruction of ex-President Viktor Yanukovych, according to the official website of the Ukrainian president.

Sarmatia's shareholders include SOCAR (Azerbaijan's State Oil Company), Georgian Oil and Gas Corporation Ltd. (GOGC), Ukrtransnafta, Polish Przedsiebiorstwo Eksploatacji Rurociagow Naftowych Przyjazn S.A. and Lithuanian AB Klaipedos Nafta with equity participation of 24.75 percent at the key shareholders and one percent at the Lithuanian company.

The Brody-Plotsk oil pipeline (Adam's gate) construction project, as an integral part of the Euro-Asian Oil Transportation Corridor, can actually create the conditions to ensure the diversification and oil supply from one of the most stable region in the world ( the Caspian region ) and the most promising one in terms of energy supplies.

The research on choosing the oil pipeline's future the Brody-Plotsk (Adam's gate) route has been completed. The length of the route will be 377 kilometers, some 120 kilometers of which will be built in Ukraine, and 257 kilometers in Poland.

The Odessa-Brody oil transportation project was planned to diversify oil supplies to Ukrainian refineries and develop the country's transit potential. The pipeline's construction was completed in May 2002. The main line has a length of 674 kilometers, with a pipe diameter of 1,020 millimeters. The pipeline's and terminal's capacity is 9-14 million metric tons per year.

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