Azerbaijan, Baku, Oct. 30 /E.Ismayilov /
The Brody-Plotsk oil pipeline (Adam's gate) project was approved on the list of Projects of Energy Community Interest (PECI), a message posted on the Sarmatia International Pipeline Company's website said on Wednesday.
The Ministerial Council of the Energy Community has approved a list of 35 projects of common interest at a regular meeting which took place in Belgrade.
One of the main criteria for selection of projects was their influence on the development of regional energy markets.
Energy Community of South East Europe (ECSEE) was established in 2005. The treaty on its establishment was signed by the European Union, Albania, Bulgaria, Bosnia and Herzegovina, Kosovo, Macedonia, Romania, Serbia, Croatia and Montenegro. Moldova joined the ECSEE in 2010.
According to the message, inclusion of the Brody-Adam's gate pipeline project on to the PECI list should positively affect the conditions of its realisation, as a result of increasing the project's investment attractiveness, simplification of the permission procedures as well as extension of the mechanisms of the European Union's support.
"The Council of Ministers called on the member countries of the Energy Community to promote the rapid and successful implementation of PECI projects," the message said.
Earlier on October 14, 2013, the European Commission included the Brody-Adam's gate oil pipeline construction project into the number of All-European projects of common interest (PCI).
The above-mentioned decisions of the Energy Community's Ministerial Council and the European Commission indicate the Brody-Adam's gate oil pipeline construction project's strategic importance and in total the importance of the Euro-Asian Oil Transportation Corridor (EAOTC) for the energy security of European countries and improving the level of integration of their oil transportation infrastructure, the message said.
Brody-Plotsk oil pipeline (Adam's gate) is an integral part of the EAOTC. Studies on the choice of the oil pipeline's future route have been completed. The length of the route will be 377 kilometres, some 120 kilometres of which will be built in Ukraine, and 257 kilometres in Poland.
Sarmatia IPC 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.
At the moment Sarmatia's participants include the State Oil Company of Azerbaijan (SOCAR), the Georgian Oil and Gas Corporation Ltd. (GOGC), Ukrainian Ukrtransnafta, Polish Przedsiebiorstwo Eksploatacji Rurociagow Naftowych Przyjazn S.A. and Lithuanian AB Klaipedos Nafta. Each of the main participants has 24.75 per cent of equity participation and the Lithuanian company has one percent.
The Odessa-Brody oil transportation project was planned to diversify oil supplies to Ukrainian refineries and develop the country's transit potential. The pipeline's construction was completed in May 2002. The main line has a length of 674 kilometres, with a pipe diameter of 1,020 millimetres. The pipeline's and terminal's capacity is 9-14 million tons per year.