Euro-Asian energy corridor project to benefit all members

Oil&Gas Materials 12 July 2013 14:47 (UTC +04:00)

Azerbaijan, Baku, July 12/ Trend E.Ismayilov/

As the result of the realisation of the Euro-Asian Oil Transportation Corridor project (EAOTC), Caspian Sea countries will get a supplementary reliable route for delivery of their oil to European markets, as well as a range of new customers and their working opportunities will expand into adjoining markets, Director General of the International Pipeline Company Sarmatia, Sergei Skripka told Trend on Thursday.

Unqualified significance of the EAOTC project is that in the case of its realisation, it will benefit all its members, Skripka noted.

The European countries for their part will acquire access to sources of high quality hydro carbonic raw materials, according to him. This route will create real conditions for the diversification of energy supplies. .

The benefit that will be gained by transit countries including Georgia, Ukraine and Poland should also be taken into account, according to Skripka.

The significance of the project increases under modern conditions when we witness instability in the Middle East and in Africa, changes in energy strategies of traditional oil suppliers, establishment of new transport routes for hydro carbonic raw material and refusal to use the old ones. The competition for Europe grows from oil consumers in China and other Asian countries.

"EAOTC can respond to many of these calls and to become the element of global structure that will allow it to maintain a balance in the European oil market and prevent shortages of supply of this raw material," Skripka stressed.

The position of the European Commission towards the project remains unchanged. It views the project as a crucial instrument of increasing Europe's energy security that provides conditions for diversification of sources and routes for oil supply.

The evidence of this attitude is the positive decision of the European Commission over the notification of state aid for the project. It is expected that the EAOTC project will be approved in the list of the Project of Common Interest to be prepared by the European Commission before the end of this year.

The constituent of the EAOTC is the Brody-Plock oil pipeline (Adam outpost). The exploration on the selection of the road for the future pipeline has already been completed. The length of the route will be 377 kilometres and 120 kilometres of the oil pipeline will be built over the territory of Ukraine and 257 kilometres in Poland.

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

Members of Sarmatia are SOCAR ( State Oil Company of Azerbaijan), Georgian Oil and Gas Corporation Ltd. (GOGC) of Georgia, UkrTransNafta of Ukraine, Przedsiebiorstwo Eksploatacji Rurociagow Naftowych Przyjazn S.A of Poland and AB Klaipedos Nafta of Lithuania with a 24.75 per cent share for each primary participant and one per cent for the Lithuanian company.

The Odessa-Brody oil transport project was planned with the aim of diversification of oil supplies to Ukrainian oil refineries and developing the countries transit opportunities.

The construction of the Odessa-Brody oil pipeline was completed in May 2002. The length of the road is 674 kilometres and the tube diameter is 1020 mm.

The first stage capacity of the pipeline and the terminal is 9-14 million tons per year.