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EU aid notification procedure for major oil transportation project completed

Oil&Gas Materials 27 March 2013 18:34 (UTC +04:00)
The European Commission has finalized the procedure for notification of state aid for the project "Construction of the Brody-Plock oil pipeline with the ability to transport oil to Gdansk or the West," according to a statement posted on Wednesday on the official website of the Sarmatia International Pipeline Company (ICC).

Azerbaijan, Baku, 27 March / Trend, E. Ismayilov /

The European Commission has finalized the procedure for notification of state aid for the project "Construction of the Brody-Plock oil pipeline with the ability to transport oil to Gdansk or the West," according to a statement posted on Wednesday on the official website of the Sarmatia International Pipeline Company (ICC).

Within the procedure, the European Commission has considered the validity of the provision of financial support for the project from the funds of the European Union Operational Program "Infrastructure and Environment".

According to the adopted decision, the selected method is used to help achieve the objective of public interest. Assistance will be provided to the necessary extent and in proportion to the expected results, thus it meets the requirements of the EU internal market.

Notification procedure was conducted by the Office of Competition and Consumer Protection on behalf of Poland.

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 will be built on the territory of Ukraine and 257 kilometers in Poland.

The Brody-Plock oil pipeline construction is considered a priority in the EU's "Infrastructure and Environment" program. This program reserves funds amounting to 495 million zloty for the 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 investments to design and complete the Odessa-Brody oil pipeline to Plock.
The Odessa-Brody oil transportation project was planned to diversify oil supplies to Ukrainian refineries and to develop the country's transit capabilities. Construction of the pipeline was completed in May of 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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