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Sarmatia to make appeal to European Commission in 2013

Oil&Gas Materials 11 May 2012 17:23 (UTC +04:00)

Azerbaijan, Baku, May 11 /Trend E.Ismayilov/

The Sarmatia International Pipeline Company (IPC) will address the European Commission in early 2013 for financial support in the Brody-Plotsk pipeline project, IPC CEO Sergei Skripka told Trend on Friday.

Skripka said currently the procedure is under the notification of state aid, which involves the determination that the allocation of funds for the project is not contrary to EU rules and regulations. The decision will be announced in the near future.

The second procedure involves making a final decision by the European Commission about the allocation of funds reserved for the project.

"We can not apply to the European Commission until we get the environmental permits for construction. We will get these environmental and ecological permits by the end of the year in accordance with the plan and, accordingly, will be able to apply to the European Commission early next year," he said.

It is planned to complete the preparation of a report on environmental and social impacts in September, Skripka said.

A study on the future of the pipeline route selection of Brody-Plotsk pipeline has been completed. The length of the route will be 377 kilometers, 120 kilometers of which will be constructed on the territory of Ukraine, 257 kilometers - in Poland.

The Brody-Plotsk oil pipeline project was named as a priority in the EU Infrastructure and Environment Operational Programme. About 495 million zlotys (about 177 million euro) were allocated to the project under the programme.

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 Plotsk.

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 1,020
millimetres. The pipeline's and terminal's capacity provided 9-14 million tons per year during the first stage.

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