Russia suggests oil pipeline projects merger

ANKARA (Commodity Online) : Russia said it will propose merging the Burgas-Alexandroupolis and the Samsun-Ceyhan oil pipelines.

Speaking here Russian Energy Minister Sergei Shmatko said the implementation of the Burgas-Alexandroupolis project to pump Russian and Caspian oil to the Greek Aegean port of Alexandropoulis via the Bulgarian Black Sea port of Burgas under a tripartite agreement between Russia, Greece and Bulgaria had been practically stopped over the stance assumed by Bulgaria seeking better economic and environmental terms in the project.

"As soon as the Bulgarian government demonstrates its readiness to implement the project and take practical steps, we, on our part, will propose discussing the merger of these two projects," Shmatko said.

The Turkish-backed project is already under construction. The $1.5-billion pipeline, which is being built by the Turkish holding Calik Energy and Italy's ENI, will extend 700 kilometers through Turkey from the Black Sea port of Samsun to the port of Ceyhan on the Mediterranean Sea.

The pipeline's projected capacity will be 60-70 million tons of oil a year.

The project is designed to reduce the oil transportation load on the Black Sea's Strait of Bosporus and the Dardanelles on the Marmara Sea, which handles some 150 million tons annually.

Source: CommodityOnline