Sarmatia ICC to appeal to EC for financial support for oil pipeline construction

Azerbaijan, Baku, Jan. 30 / Trend E.Ismayilov /

Sarmatia International Pipeline Company (ICC) filed a request to the General Directorate for Environmental Protection in Poland for an environmental permit under the Brody-Plock (Adamova Zastava) pipeline project, CEO of the ICC, Sergei Skripka told Trend.

According to him, the report has been submitted to the Regional Directorate for Environmental Protection in Lublin (90 percent of the pipeline route will go through Lublin Voivodeship).

As part of the earlier application, a report on social and environmental impacts was presented, and on January 18, introduction of changes to local plans for land use and development with inclusion of the pipeline route was completed.

"The application for obtaining the environmental permit was filed today," Skripka said. The permit for the Ukrainian section of the pipeline was granted in November last year."

According to Skripka, the procedure and approval may take three months, and after that the company will be able to apply to the European Commission for a final decision on financial support to the project.

"In order to appeal to the European Commission, we are currently involved in actualization of the project. Alongside, we continue project assistance notification stage necessary to ensure that the aid does not violate free competition and the principles of provision of such assistance adopted by the EU," Skripla said.

Research on route selection for the projected Brody-Adamova Zastava pipeline has been completed. The length of the route will be 377 kilometers, 120 kilometers of which pipeline will be built on the territory of Ukraine and 257 kilometers - in Poland.

Brody-Plock oil pipeline construction project is included as a priority in the EU operational program "Infrastructure and Environment". This program reserves funds amounting to 495 million zloty for implementation of the aforementioned project (about $ 177 million).

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

Odessa-Brody oil transportation project was planned to diversify oil supplies to Ukrainian refineries and develop country's transit capabilities. Construction of the pipeline was completed in May 2002. The pipeline has a length of 674 kilometers; the pipe diameter is 1,020 mm. During the first stage, capacity of the pipeline and the terminal is 9-14 million tons per year.

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