Everything about The Odessa-brody Pipeline totally explained
The
Odessa-Brody pipeline is a
crude oil pipeline between the
Ukrainian cities
Odessa at the
Black Sea, and
Brody near the Ukrainian-
Polish border. There are plans to expand the pipeline to
Płock, and furthermore to
Gdańsk in Poland. The pipeline is operated by
Ukrtransnafta, the Ukraine's state-owned oil pipeline company.
History
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 were built in
2001 and the state oil transport company Ukrtransnafta was established to develop the commercial attractiveness of the Odessa-Brody pipeline. However, the pipeline remained unused until
2004.
However, as sufficient capacities of oil supplies were not agreed, on
5 July 2004 the Ukrainian cabinet accepted proposal of Russian oil companies to reverse the pipeline flow, and thus making it transfer Russian oil southwards to the Black Sea and from there to Mediterranean destinations. Currently the oil is shipped to the pipeline from the junction of the southern branch of
Druzhba pipeline.
Technical features
The current length of the pipeline is . The pipeline is operated by Ukrtransnafta, and the oil is shipped by
TNK-BP. In 2006 TNK-BP pumped 3.42 million tons of oil through the pipeline. In 2007, this volume was exceeded as already during seven month in January-July almost 5.3 million tons of oil were pumped transported.
Expansion
There are ongoing intentions to implement original project. On
13 May 2003, the
European Commission declared the Odessa-Brody-Płock oil transportation project as a project of Pan-European interest and the trilateral EU-Ukraine-Poland Joint Expert Working Group (OBP JEWG) was created.
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 existing pipeline with Gdansk.
On
5 June 2007, at the Gdańsk meeting the intergovernmental working group of the project agreed to expand the composition of shareholders of Sarmatia sp.z.o.o. by companies from Azerbaijan, Georgia and Lithuania. New shareholders probably will be Lithuania's
Klaipedos Nafta,
Georgian Oil and Gas Corporation (GOGC) and the
State Oil Company of the Azerbaijani Republic (SOCAR). According to the agreements between the companies, Ukrtransnafta, PERN, SOCAR and GOGC will each own 24.75% of the shares, while Klaipedos Nafta will own 1% of shares.
On
10 October 2007, the agreement forming a pipeline consortium was signed by the presidents of Poland, Ukraine, Lithuania, Georgia and Azerbaijan at the energy security conference in Vilnius.
Further Information
Get more info on 'Odessa-brody Pipeline'.
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