Sarmatia will present a draft of EU Commission Brody-Plock oil pipeline

Oil&Gas Materials 13 December 2011 17:36 (UTC +04:00)

Azerbaijan, Baku, Dec 13 /Trend E.Ismayilov/

At the beginning of 2012, International Pipeline Company (IPC) Sarmatia will present the construction of Brody-Plock oil pipeline (Adam's gate) of the European Commission (EC), CEO of IPC, Sergei Skripka told Trend.

Mr Skripka said the presentation is planned for January 2012 to determine its compliance with the principles and requirements of financial assistance.

This means that the EC must ensure that the assistance which will be provided to the project is consistent with the principles and rules of the provision and does not violate the principles of fair competition. It is an essential element without which would make the project impossible to carry out, he said.

He went on to say that the framework of preparing a report on the environmental and social impact assessment (ESIA) stage of the preparation process is completed, taking into account the natural environment on the pipeline route. The final preparation of the ESIA will be completed by the end of 2012.

Sarmatia intends to submit a request to the EC for allocation of funding before the end of 2013. However the preparation of a feasibility study and ESIA should be completed before submission

Everything will be done to expedite the application process, without delaying this step until the end of 2013, Mr Skripka said.

A study on the route selection of the future pipeline Adam Brody-gate has been completed. The length of the route will be 377 kilometres, 120 km of which will be constructed over Ukraine and 257 kilometres through Poland.

The pipeline is included as a priority in the operating programme of the European Union Infrastructure and Environment. About 495 million zlotys (about $177 million) has been reserved for the project.

Sarmatia was created by Ukrtransnafta and the Polish PERN Przyjazn company on July 12, 2004 to attract investments to design and complete the Odessa-Brody oil pipeline to Plock.

The Odessa-Brody oil transportation project sought to diversify oil supplies to Ukrainian refineries and develop the country's transit potential. The pipeline's construction was completed in May 2002. Its trunk has a length of 674 kilometres, with a pipe diameter of 1020 millimetres. The pipelines and terminal's capacity provided nine to14 million tons per year during the first stage.