Odessa-Brody pipeline
Encyclopedia
The Odessa–Brody 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. There are plans to expand the pipeline to Płock, and furthermore to Gdańsk
in Poland. The pipeline is operated by UkrTransNafta
, Ukraine's state-owned oil pipeline company.
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 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.
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
.
On 24 March 2010, Ukraine's ambassador to Belarus proposed the pipeline begin operating in the averse direction in order to deliver Venezuelan crude to Belarussian refineries.
. 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.
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.
In 2005, after the success of Viktor Yushchenko
in the 2004 Ukrainian presidential election
and the Orange Revolution
, the new government has shown interest in using the pipeline in the direction originally intended, in order to transfer oil from the Caspian to Europe. The pipeline is planned to be prolonged 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.
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
. On 15 November 2006, the idea was supported by Ukraine's prime minister Viktor Yanukovych
.
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.
Pipeline transport
Pipeline transport is the transportation of goods through a pipe. Most commonly, liquids and gases are sent, but pneumatic tubes that transport solid capsules using compressed air are also used....
between the Ukrainian
Ukraine
Ukraine is a country in Eastern Europe. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after Russia...
cities Odessa
Odessa
Odessa or Odesa is the administrative center of the Odessa Oblast located in southern Ukraine. The city is a major seaport located on the northwest shore of the Black Sea and the fourth largest city in Ukraine with a population of 1,029,000 .The predecessor of Odessa, a small Tatar settlement,...
at the Black Sea
Black Sea
The Black Sea is bounded by Europe, Anatolia and the Caucasus and is ultimately connected to the Atlantic Ocean via the Mediterranean and the Aegean seas and various straits. The Bosphorus strait connects it to the Sea of Marmara, and the strait of the Dardanelles connects that sea to the Aegean...
, and Brody
Brody
Brody is a city in the Lviv Oblast of western Ukraine. It is the administrative center of the Brody Raion , and is located in the valley of the upper Styr River, approximately 90 kilometres northeast of the oblast capital, Lviv...
near the Ukrainian-Polish
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
border. There are plans to expand the pipeline to Płock, and furthermore to Gdańsk
Gdansk
Gdańsk is a Polish city on the Baltic coast, at the centre of the country's fourth-largest metropolitan area.The city lies on the southern edge of Gdańsk Bay , in a conurbation with the city of Gdynia, spa town of Sopot, and suburban communities, which together form a metropolitan area called the...
in Poland. The pipeline is operated by UkrTransNafta
UkrTransNafta
UkrTransNafta is an open joint-stock company established by the government of Ukraine in June 2001. The company exists to manage oil transportation operations through the Ukrainian pipeline network. The company oversees the activities of two main oil pipeline systems: the Ukrainian section of the...
, Ukraine's state-owned oil pipeline company.
History
The usage and direction of Odessa-Brody pipeline is considered to be of considerable geopolitical significanceGeopolitics
Geopolitics, from Greek Γη and Πολιτική in broad terms, is a theory that describes the relation between politics and territory whether on local or international scale....
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
Caspian Sea
The Caspian Sea is the largest enclosed body of water on Earth by area, variously classed as the world's largest lake or a full-fledged sea. The sea has a surface area of and a volume of...
(mainly from Kazakhstan
Kazakhstan
Kazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...
) to the Polish
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
Baltic Sea
Baltic Sea
The Baltic Sea is a brackish mediterranean sea located in Northern Europe, from 53°N to 66°N latitude and from 20°E to 26°E longitude. It is bounded by the Scandinavian Peninsula, the mainland of Europe, and the Danish islands. It drains into the Kattegat by way of the Øresund, the Great Belt and...
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 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.
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
Druzhba pipeline
The Druzhba pipeline is the world's longest oil pipeline and in fact one of the biggest oil pipeline networks in the world. It carries oil some from the eastern part of the European Russia to points in Ukraine, Belarus, Poland, Hungary, Slovakia, Czech Republic, and Germany...
.
On 24 March 2010, Ukraine's ambassador to Belarus proposed the pipeline begin operating in the averse direction in order to deliver Venezuelan crude to Belarussian refineries.
Technical features
The current length of the pipeline is 674 kilometres (418.8 mi). The pipeline is operated by Ukrtransnafta, and the oil is shipped by TNK-BPTNK-BP
TNK-BP is a major vertically integrated Russian oil company. It is Russia's third largest oil producer and among the ten largest private oil companies in the world. TNK-BP is Russia's third largest oil company in terms of reserves and crude oil production...
. 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 CommissionEuropean Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....
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.
In 2005, after the success of Viktor Yushchenko
Viktor Yushchenko
Viktor Andriyovych Yushchenko is a former President of Ukraine. He took office on January 23, 2005, following a period of popular unrest known as the Orange Revolution...
in the 2004 Ukrainian presidential election
Ukrainian presidential election, 2004
The Ukrainian presidential election, 2004 was held on October 31, November 21 and December 26, 2004. The election was the fourth presidential election to take place in Ukraine following independence from the Soviet Union...
and the Orange Revolution
Orange Revolution
The Orange Revolution was a series of protests and political events that took place in Ukraine from late November 2004 to January 2005, in the immediate aftermath of the run-off vote of the 2004 Ukrainian presidential election which was claimed to be marred by massive corruption, voter...
, the new government has shown interest in using the pipeline in the direction originally intended, in order to transfer oil from the Caspian to Europe. The pipeline is planned to be prolonged 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
PERN Przyjazn SA
PERN Przyjazn SA , joint stock Oil Pipeline Operation Company "Przyjaźń" is one of leading companies for oil transportation and storage in Poland...
formed a joint venture Sarmatia sp.z.o.o. on 12 July 2004.
On 27 October 2006 at the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
-Ukraine summit, the President of Ukraine Viktor Yushchenko proposed to build an extension via Slovakia
Slovakia
The Slovak Republic is a landlocked state in Central Europe. It has a population of over five million and an area of about . Slovakia is bordered by the Czech Republic and Austria to the west, Poland to the north, Ukraine to the east and Hungary to the south...
to Kralupy
Kralupy nad Vltavou
Kralupy nad Vltavou is a city in the Central Bohemian Region of the Czech Republic. It has about 18,000 inhabitants. The city lies on the Vltava River some north of Prague, the capital of both the Czech Republic and the Central Bohemian Region...
refinery in the Czech Republic
Czech Republic
The Czech Republic is a landlocked country in Central Europe. The country is bordered by Poland to the northeast, Slovakia to the east, Austria to the south, and Germany to the west and northwest....
. On 15 November 2006, the idea was supported by Ukraine's prime minister Viktor Yanukovych
Viktor Yanukovych
Viktor Fedorovych Yanukovych is a Ukrainian politician who has been the President of Ukraine since February 2010.Yanukovych served as the Governor of Donetsk Oblast from 1997 to 2002...
.
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
Klaipėdos Nafta
Klaipėdos Nafta is an operator of the Klaipėda Oil Terminal based in Klaipėda, Lithuania. The company was founded in 1994. In addition to the operationship of the Klaipėda Oil Terminal, the company participates in the Odessa–Brody–Płock pipeline project and develops Lithuanian LNG...
, Georgian Oil and Gas Corporation (GOGC)
GOGC
The Georgian Oil & Gas Corporation is the enterprise established by LLC Oil and Gas Corporations, that owns the high pressure gas pipeline system of Georgia, with the total length of 1940 km...
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
Klaipėdos Nafta
Klaipėdos Nafta is an operator of the Klaipėda Oil Terminal based in Klaipėda, Lithuania. The company was founded in 1994. In addition to the operationship of the Klaipėda Oil Terminal, the company participates in the Odessa–Brody–Płock pipeline project and develops Lithuanian LNG...
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.