Odessa–Brody Oil Pipeline

From Global Energy Monitor
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Odessa–Brody Oil Pipeline, also known as Sarmatia Pipeline, is an operating crude oil pipeline between the Ukrainian cities Odessa at the Black Sea and Brody near the Ukrainian-Polish border.

Location

The operating pipeline runs from Odessa, Ukraine to Brody, Ukraine.

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Project details

  • Operator: UkrTransNafta
  • Owner: Ukrtransnafta
  • Parent company: Ukrtransnafta
  • Capacity: 70,000 bpd
  • Length: 674 kilometers
  • Diameter:
  • Status: Operating
  • Start year: 2002
  • Cost:
  • Financing:
  • Associated infrastructure:

Background

The Odessa–Brody Oil Pipeline (also known as Sarmatia Pipeline) is a crude oil pipeline between the Ukrainian cities Odessa at the Black Sea, and Brody near the Ukrainian-Polish border. Extensions of the pipeline to Płock, and then to Gdańsk in Poland, or alternatively to a refinery in the Czech Republic, were planned but subsequently put on hold and are presumed to be cancelled.

The pipeline is operated by UkrTransNafta, Ukraine's state-owned oil pipeline company, and the oil is shipped by TNK-BP.

The usage and direction of Odessa–Brody pipeline is considered to be of considerable geopolitical significance and has thus been the subject of both political disagreement and international pressure. The pipeline was originally intended to reach Gdańsk in order to transfer oil from the Caspian Sea (mainly from Kazakhstan) to the Polish Baltic Sea port and from there to the rest of Europe. The Pivdenny maritime terminal in Odessa and the pipeline between Odessa and Brody was built in May 2002 by Ukrnaftogazbud and operated by UkrTransNafta. UkrTransNafta was established to develop the commercial attractiveness of the Odessa–Brody pipeline. However, the pipeline remained unused until 2004.[1]

However, as sufficient capacities of oil supplies were not agreed to, on 5 July 2004 the Ukrainian cabinet accepted a proposal of Russian oil companies to reverse the pipeline flow, thus making it transfer Russian oil southwards to the Black Sea and from there to Mediterranean destinations.[2] Currently the oil is shipped to the pipeline from the junction of the southern branch of Druzhba pipeline.

On 24 March 2010, Ukraine's ambassador to Belarus proposed the pipeline begin operating in the opposite direction in order to deliver Venezuelan crude to Belarusian refineries.[3]

Expansion projects

Brody–Płock Extension

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  • Operator:
  • Owner: Ukrtransnafta
  • Parent company: Ukrtransnafta
  • Capacity:
  • Length:
  • Diameter:
  • Status: Cancelled
  • Start year:
  • Cost:
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On 13 May 2003, the European Commission declared that an Odessa-Brody-Płock Oil Transportation System was one of Pan-European interest, and the trilateral EU-Ukraine-Poland Joint Expert Working Group (OBP JEWG) was created.[1]

In March 2012, the feasibility study was completed.[4]

In October 2013, after substantial delays in developing the project, Poland downgraded the project status of the pipeline from "main" to "reserve", rejecting EU funds and resulting in the project indefinitely being postponed.[4]

As of 2016, there had been no further developments on the extension project in over four years, and it is presumed to be cancelled.

Płock–Gdańsk Extension

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  • Operator:
  • Owner: Ukrtransnafta
  • Parent company: Ukrtransnafta
  • Capacity:
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  • Diameter:
  • Status: Cancelled
  • Start year:
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In 2005, after the success of Viktor Yushchenko in the 2004 Ukrainian presidential election and the Orange Revolution, the new government demonstrated an interest in using the pipeline in the direction originally intended, in order to transfer oil from the Caspian to Europe. The pipeline was planned to be expanded to Płock in Poland, and from there through the existing branch off of the northern branch of Druzhba pipeline to Gdańsk. For developing this project, UkrTransNafta and Poland's pipeline operator PERN Przyjazn SA formed a joint venture Sarmatia sp.z.o.o. on 12 July 2004.[1]

On 11 May 2007, the presidents of Poland, Ukraine, Lithuania, Georgia and Azerbaijan, and the special envoy of the president of Kazakhstan agreed on the construction of a pipeline linking the existing pipeline with Gdańsk.[5]

On 5 June 2007, at a meeting in Gdańsk , the intergovernmental working group of the project agreed to expand the composition of shareholders of Sarmatia sp.z.o.o. to include companies from Azerbaijan, Georgia, and Lithuania.[6] According to the agreements between the companies, Ukrtransnafta, PERN, SOCAR and GOGC would each own 24.75% of the shares, while Klaipedos Nafta will own 1% of shares.[7]

On 10 October 2007, the agreement forming the pipeline consortium was signed by the presidents of Poland, Ukraine, Lithuania, Georgia and Azerbaijan at the energy security conference in Vilnius.[8]

As of 2011, there had been no further development on the extension project in over four years, and it is presumed to be cancelled.

Brody–Kralupy Refinery Extension

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  • Operator:
  • Owner: Ukrtransnafta
  • Parent company: Ukrtransnafta
  • Capacity:
  • Length:
  • Diameter:
  • Status: Cancelled
  • Start year:
  • Cost:
  • Financing:
  • Associated infrastructure:

On 27 October 2006, at the European Union-Ukraine summit, the President of Ukraine Viktor Yushchenko proposed to build an extension via Slovakia to Kralupy refinery in the Czech Republic, changing the initial proposal to extent it to Płock. On 15 November 2006, the idea was supported by Ukraine's prime minister Viktor Yanukovych.[9]

The project has seen no development since it was first discussed in 2006, and it is considered cancelled as of 2010.

Articles and resources

References

  1. 1.0 1.1 1.2 "Odessa-Brody-Plock Oil Transportation System". INOGATE Technical Secretariat. 2006-10-12. Archived from the original on July 18, 2011. Retrieved 2007-09-30. Cite uses deprecated parameter |deadurl= (help)
  2. "Turkey asks Ukraine to give up reverse of Odessa-Brody oil pipeline". RIA Novosti. 2004-07-16. Retrieved 2008-02-02.
  3. "Ukraine Offers Odessa-Brody for Venezuelan Crude to Belarus". Oil&Gas Eurasia. Eurasia Press. 2010-03-25. Retrieved 2010-03-25.
  4. 4.0 4.1 Poland postpones Brody-Plock oil pipeline with Ukraine, Enerdata, 7 Oct. 2013
  5. "Six countries agree on oil pipeline bypassing Russia". Forbes. 2007-05-11. Retrieved 2007-09-30.
  6. "Communiqué on the Intergovernmental Working Group on energy issues meeting" (DOC). 2007-06-05. Retrieved 2007-09-30.
  7. "Ukrtransnafta Predicts That Odesa-Brody Pipeline Won't Start To Pump Oil Toward Brody Before 2011". Ukranews. 2007-07-17. Retrieved 2007-09-30.
  8. "Vilnius unveils Caspian pipe pact". Upstream (newspaper). NHST Media Group. 2007-10-10. Retrieved 2007-10-13. Text "Upstream Online " ignored (help)
  9. Socor, Vladimir (2006-11-16). "Kyiv changing ideas, mixing signals on Odessa-Brody oil pipeline". Eurasia Daily Monitor. The Jamestown Foundation. Retrieved 2007-09-30.

Related GEM.wiki articles

External resources

External articles

Wikipedia also has an article on Odessa–Brody Oil Pipeline. This article may use content from the Wikipedia article under the terms of the GFDL.