IPE Sarmatia to update feasibility study of Brody-Plock oil pipeline

Business Materials 21 May 2015 17:29 (UTC +04:00)
International Pipeline Enterprise (IPE) Sarmatia prepares to update the feasibility study of Brody-Plock (Adam’s gate) oil pipeline

Baku, Azerbaijan, May 21

By Maksim Tsurkov - Trend:

International Pipeline Enterprise (IPE) Sarmatia prepares to update the feasibility study of Brody-Plock (Adam's gate) oil pipeline, the IPE Sarmatia Director General Sergei Skripka told Trend May 20.

He said that this issue will be included in the work plan of the company before late 2015 and discussed at the meeting of the participants to be held in June.

"In June, the meeting of participants will take place, which is expected to approve the plan of work," Skripka said. "The estimated date of the meeting is June 17, but the final decision on this issue will be made in the nearest future."

The approximate work plan is tentatively known.

"One can already say that it will include the updating of the feasibility study of construction of the Brody-Plock oil pipeline, as some changes have taken place on the oil market since the adoption of a previous feasibility study," said Skripka. "The work plan will also include the preparation of plans for the land use development for nine smallest administrative units in Poland, through which the route of the pipeline runs. The plans will be prepared specifically for the route. Thus, the phase of spatial planning will be completed."

The Brody-Plock (Adam's gate) oil pipeline is currently the sole missing part of the Euro-Asian Oil Transportation Corridor (EOTC).

As a result of realization of this project, the Caspian states will receive an additional reliable route for their oil supplies to the European market, new customers, and opportunities to work in adjacent markets will also expand.

The studies on the choice of a route for the future Brody-Adam's gate oil pipeline have been completed. The route's total length will be 377 kilometers, some 120 kilometers of the pipeline being built in Ukraine, and 257 kilometers in Poland.

The Ukrainian company Ukrtransnafta and the Polish company PERN Przyjazn established IPE Sarmatia on July 12, 2004.

The participants of Sarmatia are: the State Oil Company of Azerbaijan (SOCAR), Georgian Oil and Gas Corporation Ltd. (GOGC), Ukrainian UkrTransNafta, Polish Przedsiebiorstwo Eksploatacji Rurociagow Naftowych Przyjazn S.A. and Lithuanian AB Klaipedos Nafta. The share of the main participants is 24.75 percent each, while the Lithuanian company has a one percent share.

Odessa-Brody oil transport project was aimed at diversification of the oil supply to Ukrainian refineries and developing the country's transit opportunities. The construction of Odessa-Brody was completed in May 2002.

The length of the pipeline is 674 kilometers, while the diameter of the pipe is equal to 1,020 millimeters.

Edited by CN

Follow the author on Twitter: @MaksimTsurkov