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Brody-Plock pipeline construction permit may be received in 2017

Tuesday, December 1
Sarmatia International Pipeline Company expects to get permission to build the Brody-Plock oil pipeline in 2017, Sarmatia Director General Sergei Skripka told Trend in an exclusive interview.

He said that until that time, the company intends to resolve the issue with investors.

“We continue to explore opportunities to attract investors to the project,” Skripka said. “The project is open to all investors, including those from third-party countries, but no specific negotiations are currently being held with anyone.”

He went on to add that it is expected to receive the pipeline construction permit in 2017 according to the schedule of the project’s implementation.

“We have to agree with investors until this moment,” said the head of the company. “We also continue to work with the European Commission regarding the possibility of obtaining financial support. The project remained in the list of the EU priority projects.”

“I would like to note that during the evaluation procedure, the project received the highest score among all oil projects,” he said. “This is another confirmation of the fact that the Brody-Plock pipeline is important investment not only for the participants of the project, but also for the EU.”

The Brody-Plock (Adam’s gate) oil pipeline is currently the sole missing part of the Euro-Asian Oil Transportation Corridor (EOTC).

As a result of the implementation of this project, the Caspian states will receive an additional reliable route for their oil supplies to the European market, new customers, and opportunities to work in adjacent markets will also expand.

The studies on the choice of a route for the future Brody-Adam’s gate oil pipeline have been completed. The route’s total length will be 377 kilometers, some 120 kilometers of the pipeline being built in Ukraine, and 257 kilometers in Poland.

The Ukrainian company Ukrtransnafta and the Polish company PERN Przyjazn established IPE Sarmatia on July 12, 2004.

The participants of Sarmatia are: the State Oil Company of Azerbaijan (SOCAR), Georgian Oil and Gas Corporation Ltd. (GOGC), Ukrainian UkrTransNafta, Polish Przedsiebiorstwo Eksploatacji Rurociagow Naftowych Przyjazn S.A. and Lithuanian AB Klaipedos Nafta. The share of the main participants is 24.75 percent each, while the Lithuanian company has a one percent share.

Odessa-Brody oil transport project was aimed at diversification of the oil supply to Ukrainian refineries and developing the country’s transit opportunities. The construction of Odessa-Brody was completed in May 2002.

The length of the pipeline is 674 kilometers, while the diameter of the pipe is equal to 1,020 millimeters.

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